Rebate letters to cost 42 million dollars

March 8, 2008 12:00:00 AM PST
The government is shelling out 42 million dollars to notify Americans that their tax rebate checks are almost in the mail.The Internal Revenue Service is spending the cash on letters to 130 million households who filed returns for the 2006 tax year. The notices inform them of the $600 tax rebates for individuals and $1,200 for married couples.

The director of the president's National Economic Council says the letters are being sent to help prevent taxpayer confusion. However, congressional Democrats call the letters "self-congratulatory" and say there are better ways to use the money.

The tax rebate checks are to go out starting in May.