Abstract: | The likely allocation of extra income from the 1982 U.S. income lax rate reduction by a group of consumers was investigated. Eighty-five percent of the sample indicated they were likely to spend the additional income and 75% that they would save or invest it. Saving was related to income and age. Those indicating they were likely to save said they would require a larger sum of money as a result of the tax cut in order to make a decision about its use than did those who were most likely to spend it. |