Includes diesel fuel tax suspension and $1,050 rebates, which will be sent out just ahead of November election. BONUS: Gas tax is going up 5.6% on July 1.
How worried are the Democrats about the upcoming November election?
They are so concerned that California’s politicos are proposing an inflation relief package, including rebates slated to be doled out in October.
Tax refunds under the agreement’s $17 billion “inflation relief package” would provide $350 to individuals making less than $75,000 per year. Couples making less than $150,000 who file their taxes together would receive $700. If families in those categories have at least one dependent, the deal calls for them to also receive another $350. That means families could receive up to $1,050.
The agreement also would provide checks, although in smaller amounts, to many people who make more money. The smallest payments are designated for individuals making up to $250,000, who would get $200. Couples filing jointly who make less than $500,000 will receive $400, plus an additional $200 for dependents.
Under the plan, the state would send people the money through direct deposits and debit cards beginning in October.
They will try to offset the substantial price increases in diesel fuel (essential to nearly every aspect of the supply chain) by suspending the diesel fuel tax.
The rebates make up $9.5 Billion of a $17Billion relief package that also includes assistance with rent and utilities for eligible Californians, plus a suspension of the state’s sales tax on diesel fuel. The suspension would go into effect October 1 and last for one year, providing a savings of 23 cents per gallon, according to state officials.
Newsom’s administration said it plans to provide local governments with $439 million to backfill funds for road projects and transportation that would be provided by the tax.
The plan still needs full legislative approval, and hearings on the deal are scheduled for Monday morning.
Currently, inflation is costing the average family $341/month…and it is likely to go up. So, even with the most generous rebate, the monies only mitigate three months of the elevated cost of living.
And, as a fun fact, California might raise the gas tax this Friday.
Newsom, a Democrat, had previously expressed support for helping California motorists experiencing pain at the pump by waiting to implement a 5.6% tax hike scheduled to take effect on July 1. However, lawmakers failed to stop the gas tax increase from taking place because they needed to pass legislation in April in order to do so. As of July 1, the tax will rise to 53.9 cents per gallon.
Californians are a little skeptical of this plan.
I wonder if it has something to do with voting in November? Nah, that couldn’t be true. That would be buying votes which is illegal.
— Jimmy Fandango (@Fandango1Jimmy) June 27, 2022
I will get $0. Just like the last time the state sent out checks.
— Jaime Escalante (@calculusforall) June 27, 2022
$300B budget deal, including a $17B billion inflation relief package w/ checks of up to $1,050. But then you turn around and raise the gas tax? How stupid does Newsom think we are? My bad, there are many stupid people in CA that keep voting them in. @GavinNewsom https://t.co/UVuzRmGXXD
— SuzieCohen211 🇮🇱🇺🇸🇬🇧 ✡️ (@SusanGr48163450) June 27, 2022
Adam Mendoza, a Los Angeles-based pollster, currently focusing on public opinion on next year’s budget, has a recent analysis confirming the above sentiments are shared.
“And this maybe a little bit of a tangent, but we’ve been finding that people are reacting more and more negatively when politicians use the phrase ‘more money in your pocket’ or something to that effect. Not only do most people not keep physical money in their pocket anymore making it redundant, but they have been using that wordage for so long it is starting to take on a more and more negative connotation, because it feels like people are getting scammed whenever it is said.”
“And Newsom, Atkins, and Rendon have been throwing that phrase around over this, so some anger stemming from this comes right down to that word usage too. My favorite response to this was when one person we polled, a former government worker at that, said that if she hears that phrase one more time that she is, quote ‘going to scream.’ Minor detail, but it shows how upset some really are.”
This November, we will see how tired Californians are of the Sacramento Scam.DONATE
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