Income tax refunds spur local business recently

Published 12:01 am Saturday, February 11, 2012

Brent Cook with Jackson Used Cars talks to a customer about purchasing a new vehicle. | Stephanie Nelson/Star-News


More than 109 million filers received a tax refund, with an average refund of $2,913 last year.

While some Americans utilize the funds to pay off debt, a good number use the money to make big purchases such as vehicles, televisions and furniture – much to the delight of local business owners, and especially to retailers of autos and furniture.

Tom Goodspeed of Barrow’s Fine Furnishings said for the last four years, the demand for furniture is down.

“The furniture industry is closely tied to the housing industry, both of which are down,” he said. “As the furniture industry goes, there’s some pent up demand.

“When it comes to income tax returns, as a general rule, we sometimes like to think that only those people on the lower end of the income scale can look forward to a refund to buy,” he said. “The fact is that for everyone who gets a refund, for them, that’s disposable income. And when money is injected into the economy, that’s a good thing for everyone.”

The same can be said for those in the automobile industry, said Brent Cook, salesman for Jackson Used Cars.

“People love to be able to spend their money in the hometown, especially when it comes to large purchases such as a vehicle,” Cook said. “An income tax refund lets them do that. You cannot go out of town and get a better deal than you can in your hometown – no matter what you’re buying.

“You get more for your money,” he said. “And those business owners – they’re going to be accountable to you as a customer. They’ll see you in Wal-mart, Winn-Dixie. In the big cities, they’re looking for a one-time shop.

“Here, we look to earn your business for a lifetime,” he said. “And this is the time of the year where people can use that money in a way that is very needed in their home, like for a way for transportation.”