California sending out ‘inflation relief’ checks up to $1,050. Will other states follow?
(NEXSTAR) – An estimated 23 million Californians can expect a new round of direct payments to hit their bank accounts this year, Gov. Gavin Newsom announced Sunday. The state is issuing payments up to $1,050 in what the governor called a new “middle class tax rebate.”
The direct payments are part of an “inflation relief package” in California’s budget agreement, the governor and California’s legislative leaders said in a joint statement.
The amount California residents will get depends on their household income and how many dependents they have. Nexstar’s California Capitol Bureau reported the payments are set to start in late October.
State leaders around the country are also looking for ways to give residents relief from inflation-driven high costs and record-breaking gas prices, whether it’s waving gas taxes or sending out gift cards.
Earlier this month, Maine started issuing direct payments of $850 to residents making less than $100,000 after discovering the state had a large budget surplus.
Illinois’ state budget includes a host of ways to give residents relief from rising prices, including a year-long pause on sales tax for grocery purchases, doubling property tax rebates, freezing taxes on school supplies in the fall, and direct payments of $50 to $100 for some families.
Colorado taxpayers are set to receive anywhere from $400 to $800 later this summer as part of an early tax rebate.
Georgia started issuing direct payments up to $500 to taxpaying residents last month. New Mexico also started giving residents $250 to help relieve the pain of rising prices.
Hawaii’s governor signed a bill into law last week that not only increases the state’s tax refunds, but also raises its minimum wage.
Pennsylvania’s state treasurer announced Monday that those who use a PA 529 plan to save for college will be getting another $100 in their account as a way to offset rising prices. The state’s governor is also continuing to push for a plan to send $2,000 payments directly to people.
Minnesota’s governor has also pitched another round of direct payments, but the Duluth News Tribune reports the plan’s odds of coming to fruition are slim.
At the national level, President Joe Biden has urged Congress to suspend the gas tax for 90 days, which would save Americans 18 cents per gallon at the pump. Biden said states might also want to consider temporarily suspending their state gas taxes, which could drop prices even more. However, opponents argue a gas tax holiday could stimulate demand, resulting in higher prices overall, and would hurt the country’s infrastructure budget.
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