Now that we know how tax rebates theoretically prevent economic downturns, let's find out how they are implemented. It may be surprising that opposing political parties can suddenly and overwhelmingly agree on something, but politicians can pass tax rebate plans quickly for a few reasons. Often, speed is necessary for the plan to work, considering the time it takes to get money to individuals. Lawmakers want people to start spending before economists can state with certainty that the nation is stuck in recession (which will cause people to hold on to their money). In addition, congressmen want to win over voters by approving bills that combat economic problems. For the tax rebates to work, economists say the "three T's" must fall in line. The amount you get depends on the particular plan passed. For the plan to work, Congress hopes that as many people as possible spend their money quickly. Does that really happen?
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