According to a budget agreement negotiated by Governor Gavin Newsom and state lawmakers on Sunday, around 23 million Californians could soon get “inflation relief” checks of up to $1,050.
The payments are a part of a $17 billion relief package, according to statements from Newsom, Senate President Pro Tempore Toni G. Atkins, and Assembly Speaker Anthony Rendon. The relief package also includes a suspension of the state’s diesel fuel sales tax and additional funding to assist people with rent and utility bills.
The agreement was reached when Californians were paying the highest gas prices in the nation, with the average gallon of gas costing $6.32 on Monday, or nearly 29 percent more than the national average. With a limit of two cars, Newsom has suggested delivering stimulus cheques to state citizens for $400 per vehicle. However, some MPs had advocated a strategy to provide lower-paid workers with more giant cheques.
According to the MPs, the relief payments are intended to help citizens deal with “global inflation and rising prices of everything from gas to food, as reported by CBS news.
Where does the allowance come from?
The cheques, which come from the state’s record-breaking $97 billion budget surplus, are intended to be used as tax refunds.
Who will be eligible for a cheque to offset inflation?
The payouts are based on income, tax filing status, and household size, just as the federal government’s stimulus checks.
The giant cheques will go to Californians with lower and medium incomes.
Couples filing jointly who make less than $150,000 annually and single taxpayers making less than $75,000 annually will receive $350.
Dependent taxpayers will get an extra $350.
In other words, a couple with two kids and a combined income of $125,000 would be eligible for $350 for each adult and $350 for each of their kids, for a total of $1,050.