After Governor Gavin Newsom signed Thursday’s $308 billion state budget, approximately 23 million Californians will be eligible for “inflation relief” checks up to $1.050.
Newsom stated that the checks are part of a $17billion relief package. It will also suspend diesel fuel sales tax and provide additional assistance to people paying rent or utility bills. Inflation-relief check are tax refunds worth $9.5 billion to state residents.
California drivers are facing the highest gasoline prices in America. On Friday, the average cost of a gallon in California was $6.27. This is 29% more than the national average. Newsom proposed earlier this year sending $400 per vehicle in stimulus checks to state residents. There was a limit of two vehicles. Other lawmakers had advocated for a plan that would give larger checks to those who earn less.
We reached an agreement with the legislature regarding California’s budget. This budget immediately takes actions to give $$ to millions of people who are struggling with rising costs and global inflation. It also addresses some of the most pressing challenges of our times.
Newsom stated that “in the face of new uncertainties and challenges, we’re providing more than $17 billion in relief for families to make ends meet,” in a Thursday statement.
California residents can calculate their tax refund eligibility by using this calculator.
The payments will certainly reduce higher pump prices, but they raise questions about how much cash is being put into the economy when inflation is at its highest point in 40 years. Economists attribute the current inflation crisis to a combination of direct payments from the government to families and loans to business.
Here’s how California’s plan works.
These checks are intended to be tax refunds and come from the state’s record-setting budget surplus of $97 billion.
In that they are based upon income, tax-filing status, and household size, the payments are similar to federal stimulus checks.
Californians with lower and middle incomes will be the most fortunate to receive the largest checks.
This means that a couple who earns $125,000 combined and has two children would be eligible for $350 per adult and $350 for their children for a total amount of $1,050.
Residents with higher incomes will be paid less.
According to the Sacramento Bee, the payments are not available for couples earning more than $500,000 or single taxpayers making more than $250,000.
The governor announced on Thursday that checks will be sent by direct deposit or via debit cards as soon a possible October.
