Many Californians are skeptical of Newsom’s motivations for spending the surplus on them.
California Governor Gavin Newsom, who faces a recall election soon, plans to use a budgetary “surplus” to send billions of dollars back to California taxpayers and “undocumented” residents.
If approved, the state would give $600 checks to workers who earn up to $75,000 annually, with $500 bonuses for tax filers with dependents and undocumented families.
Newsom said 80% of the state’s workers and two-thirds of all residents would benefit from the plan.
State law requires that taxpayers get a rebate when a budget surplus hits a certain size, which has only happened once in California in more than 40 years. A spokesperson for the California Department of Finance said the numbers for this year’s state budget won’t be finalized until 2023.
The payment would be the second round of cash payments given by the state during the pandemic.
Earlier this year, people making less than $30,000 got a $600 payment. Immigrants making up to $75,000 who file taxes, including those also living in the country illegally, also got the check. State officials chose a higher eligibility limit for those people because they didn’t get federal stimulus checks.
Some other Californians, like those who receive Supplemental Security Income benefits, can expect payments later this summer. And participants of CalWORKs and recipients of other benefits may qualify for a one-time $600 Golden State Grant Program payment, which is separate from the Golden State Stimulus.
Not surprisingly, the maneuver did not impress Newsom’s likely recall challengers.
Kevin Faulconer, the former mayor of San Diego, plans to roll out a tax cut proposal later this week.
“One time payments for just one year isn’t enough, not nearly enough,” Faulconer said. “We need permanent, lasting tax relief for middle-class families.”
Businessman John Cox, who campaigned alongside a bear last week for attention, accused Newsom of engaging in a publicity stunt.
“The governor’s got a lot of money to hand out. And of course, he’s worried about his own neck,” Cox said at a campaign event in Los Angeles.
The benefits sent out by the government to Californians are such that businesses are struggling to reopen because they can’t find workers. I recently had lunch at a bustling restaurant in La Jolla, one of the few that have reopened since officials lifted restrictions.
Our area’s famous Corvette Diner is a good example of what is occurring.
CRG Operations Manager, Sofia Picazo, told KUSI’s Allie Wagner that they are urging people to just walk-in to apply for a job, and they will even “one-up” competing offers to secure new employees. Picazo said people have been coming in for interviews, accept the job, and then don’t show up for their first shift.
This is likely because they can claim to be actively looking for work, and continue receiving benefits from our government.
Picazo explained how they are trying to combat this phenomenon and provide better incentives for workers to start working again on KUSI’s Good Morning San Diego.
Corvette Diner was scheduled to open April 1, 2021, but that did not happen.
Now, they are open only five days a week, with limited hours, because they simply don’t have the staff to open anymore than that.
Meanwhile, many Californians are skeptical of Newsom’s motivations for spending the surplus on them.
Smells like a bribe @GavinNewsom.
— Malcolm Ray Robinson (@MRobinsonReal1) May 10, 2021
Donations tax deductible
to the full extent allowed by law.