California Tax Relief: What’s In the Deal

Gov. Gavin Newsom and legislative leaders have agreed to provide as much as $1,050 to millions of California families to help with rising gas prices and inflation, they confirmed Sunday night.

The three-tier program would benefit an estimated 23 million California taxpayers, including individual filers making as much as $250,000 and joint filers making as much as $500,000, with low- and middle-income households set to receive incrementally more money.

The $9.5 billion in tax refunds, which CalMatters reported Friday, is part of a $12 billion relief plan that is central to a broader $300 billion budget deal that state leaders announced Sunday night.

“California’s budget addresses the state’s most pressing needs, and prioritizes getting dollars back into the pockets of millions of Californians who are grappling with global inflation and rising prices of everything from gas to groceries,” NewsomSenate President Pro Tem Toni Atkins and Assembly Speaker Anthony Rendon said in a joint statement.

Under the tax rebate plan, households making as much as $75,000 for individuals or $150,000 for joint filers would receive $350 per taxpayer, plus an additional $350 if they have at least one dependent. So a single parent would receive $700 and two-parent families would receive $1,050.

The amount would decrease to $250 per taxpayer for households making as much as $125,000 for individuals or $250,000 for joint filers, and to $200 per taxpayer for households making as much as $250,000 for individuals or $500,000 for joint filers. In both of these tiers, parents would receive an additional $250 or $200, respectively, if they have at least one dependent.

Californians with incomes above $250,000 for an individual or $500,000 for joint filers would not receive a rebate. The relief package also includes $1.1 billion in aid for recipients of Supplemental Social Security or CalWORKs.

“The plan recognizes that some people are hurting more than others and gives them greater relief,” according to an email sent earlier this week to Assembly Democrats.

Differences in proposed spending for universities, housing and social safety net programs, as well as the details of a major climate package, lingered as the Legislature passed a placeholder budget earlier this month. But the biggest holdup to a bargain, which must pass before lawmakers leave for summer recess at the end of the month, had been the dispute over direct financial assistance for taxpayers.

Newsom and legislative leaders were at odds for months over whether to target the relief at drivers or the neediest Californians.

During his State of the State speech in March, the governor called for a plan to address spiraling gas prices, which have since reached an average of more than $6 per gallon. He proposed to send $400 debit cards to every registered vehicle owner in the state, up to two per person.

Legislative leaders firmly resisted that approach, which did not include an income limit. Progressive critics noted that it would benefit millionaires and billionaires while leaving out Californians too poor to own their own cars.

Click here to read the full article in CalMatters

Comments

  1. What is the current State budget surplus?

  2. Sick an tired of the relief crap!!! If the legislators/Governor were doing their job in the first place we wouldn’t be in this mess. Government at their best…. doing such a lousy job in the first place!

  3. Really??? says

    Geez, and what point of reality do these idiot Democrats get?

    Capitalism works, Reducing taxes increases tax revenue because more people spend money.

    Etc…..

    Now when are the cities being hammered by Sb-9 going to join the lawsuit?

  4. HOW FUNNY….THIS IS NOT GOING TO SAVE YOUR NAZI PARTY’S ASS IN NOVEMBER NEWSOM….!!!! NO WAY NO HOW……YOU HAVE LOST THE HISPANIC AND INDEPENDENT VOTE DUMB ASS!!! ALL YOU HAVE LEFT IS YOUR NAZI PARTY…..YOU ARE GOING DOWN DUMB ASS……WATCH AND SEE

  5. Stan Anderson says

    This isn’t about inflation relief it’s simply about buying votes as the check will go out in October. Suspending the gas tax would provide immediate relief directly to those paying it. But no, that’s too simple (and fair). Better to give everybody a little bit much closer to the election to buy votes in November — BS!

  6. Democrats only fix problems they cause with MORE problems………and they like throwing enormous amounts of money we don’t have, at problems that don’t exist, for solutions that don’t work!!! Well, this is a problem they’ve definately caused and STILL their only solution is to throw $billions$ of OUR tax money at it. GOOD RIDDANCE to NewSCUM in Nov.

  7. JimNorCal says

    What families have learned over the last couple of years:
    1) you don’t get much from your child’s tax deduction if you have a decent job
    2) if your kid earns even a little bit of money, BE SURE TO FILE A TAX RETURN for them!!
    3) don’t declare them as a dependent (see “1” above)
    4) now you are eligible for the stimmy checks being distributed by state and federal legislators because your kid is a bona fide “tax payer” LOL

  8. Do not get happy about getting this money. What they give out, THEY WILL TAKE BACK IN SPADES!
    All socialist Newsom and company want to do is destroy California as part of their goal to destroy America.
    With all they do in destruction, they still make their campaign contributions grow.

  9. Chris Renner says

    More welfare than growth oriented policies.

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