23 million Californians Could Get Inflation Relief Payments Say State Leaders

Taxpayers in California will get “inflation relief” rebate payments after a deal was struck on the 2022-23 budget framework. The agreement also eliminates the state’s diesel sales tax.

Tax refunds for millions of working Californians are part of a $17 billion agreement announced by Governor Gavin Newsom, Senate President pro Tempore Toni Atkins, and Assembly Speaker Anthony Rendon on Sunday night, according to a statement released jointly by the three leaders.

In addition, 23 million Californians will get direct payments of up to $1,050 as part of the new structure. According to the Newsom administration, tax refunds and debit cards would be issued to taxpayers by the end of October. According to the state’s Franchise Tax Board, all will be given by the end of 2022 or the beginning of the following year at the latest.

Here’s how the direct payments would work

Based on their income level, taxpayers would get either $350, $250, or $200 plus an additional payment of the same amount if they have at least one dependant.

People who are single and make less than $75,000 a year are eligible for a tax credit of $350 every year. Individuals making less than $150,000 a year will receive $700. They will receive an extra $350 if they have a dependent.

A married couple with one child earning $100,000 a year would receive $1,050.

This is the income level of around 82% of the state’s beneficiaries.

$25 would be given to single filers who earn between $75,001 and $125,000 Individuals making between $150,001 and $250,000 will receive $500 in the form of tax credits. They will receive an extra $250 if they have a dependent.
At this stage, about 12 percent of the recipients are in.

People making between $125,000 and $250,000 would receive $200. 400 dollars would be given to joint filers who earn between $250,001 and $500,000. At least one dependent will earn them an extra $200.
About 6% of the recipients fall into this category.

Here’s what else is in the deal.

For the next 12 months, the state will suspend the 23-cent-per-gallon fuel sales tax.

‘The state will reimburse local governments with the comparable amount of revenue, estimated at $439 million,’ H.D. Palmer from the Department of Finance told KCRA 3,’ he said.”

At the end of Friday, it was announced that Newsom and Democratic leaders had ruled out a suspension of the gas tax because they claimed it wouldn’t lead to significant price reductions for motorists.

Added funds for rent and utility bills were included in the agreement reached on Sunday.

It was also said in the announcement from the governor and legislative leaders that California would “become the first state to attain universal access to health care coverage,” but the details were not provided.

Additional funding for reproductive health services would also be provided by the framework.

As part of a $47 billion multi-year infrastructure and transportation proposal, “this budget builds on our extraordinary commitment to transform the resources available in our state,” the joint statement read.

In light of increased gas prices, the agreement comes at a time when Californians are struggling.

The average price of a gallon of normal gas in the state was $6.321 on Sunday. It’s not the all-time high, however, as the record of $6,438 was reached on June 14th. Diesel is much more expensive, at $6.973 per gallon.

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