About 23 million California residents will receive “inflation cut” checks of up to $1,050 after Governor Gavin Newsom signed a $308 billion budget on Thursday that includes the payments.
The checks are part of a $17 billion relief package that will also suspend the state’s diesel fuel sales tax and provide additional assistance to help people pay their rent and utility bills, newsom said in a report. The anti-inflation checks are tax refunds that will return a total of $9.5 billion to residents of the state.
The deal comes as California drivers face the stimulus checks of $400 per vehicle to residents of the state, with a cap of two vehicles. But other legislators had it would provide bigger checks to people who earn less.in the United States, the average price of a gallon of gas in the state was $6.27 on Friday, about 29% higher than the national average. Earlier this year, Newsom had sending
“In the face of new challenges and uncertainties, we are providing more than $17 billion in assistance to help families make ends meet,” Newsom said in Thursday’s statement.
California residents can see how much they are entitled to by using this “middle class tax refund calculator.“
While the payments will no doubt mitigate higher costs at the pump, they also raise questions about the impact of injecting more cash into the economy at a time when inflation is at an all-time high. credit the combination of government stimulus spending – such as direct payments to families and loans to businesses – and supply chain problems as contributing to the current inflation crisis.. Economists
Here’s how California’s plan will work.
Where does the money come from?
Checks are designed as tax refunds and arise from the establishment of state records.
Who will be eligible for an inflation relief check?
The payments are similar to stimulus checks sent by the federal government in that they are based on income, tax status and household size.
Low- and middle-income Californians are expected to receive the biggest checks.
- Single taxpayers who earn less than $75,000 per year and couples who file jointly and earn less than $150,000 per year will receive $350 per taxpayer.
- Taxpayers with dependents will receive an additional $350, regardless of the total number of dependents.
In other words, a couple earning $125,000 and having two children would be entitled to $350 per adult plus $350 for their children, for a total of $1,050.
What about Californians with higher incomes?
High-income residents will receive smaller payments.
- Single taxpayers who earn between $75,000 and $125,000 per year and couples who earn between $150,000 and $250,000 will receive $250, plus the same payment for their dependents, for a maximum of $750 per family .
- Singles who earn between $125,000 and $250,000 and couples who earn between $250,000 and $500,000 annually would receive $200 each, plus the same amount for their dependents. This equates to a maximum payment of $600 per family.
What about families earning over $500,000?
Couples earning more than $500,000 and single taxpayers earning more than $250,000 are not eligible for payments, according at the Sacramento Bee.
When will the checks be issued?
Checks will be sent by direct deposit or debit cards as early as October, the governor announced Thursday.