California Governor Gavin Newsom and Democratic legislative leaders have agreed on a $17 billion relief package that includes $9.5 billion in inflation relief funds for the state's 23 million California taxpayers.
Californians will receive checks in the amount of $200 to just over $1,000 by early next year, CNBC reports.
"Millions of Californians will be receiving up to $1,050 as part of a NEW middle class tax rebate," Newsom tweeted. "That's more money in your pocket to help you fill your gas tank and put food on the table."
People who earn up to $75,000 in income, or $150,000 if married and filing jointly, will receive up to $350 per tax filer, and another $350 per dependent, i.e. the highest amount of up to $1,050.
Above that tier, those earning less than $125,000 if single or $250,000 if married and filing jointly will qualify for $250 per filer and another $250 per dependent.
Those earning up to $250,000 if single or $500,000 if married and filing jointly, the highest tier, may receive $200 per filer, plus another $200 per dependent.
Equitable Tax Treatment
"It seems that what everybody wants from their state lawmakers right now is help reconciling and addressing the fact that many families are really struggling with inflation and other pressures, while state budgets and corporate profits are doing very well," says Dylan Grundman O'Neill, senior state policy analyst at the Institute on Taxation and Economic Policy.
California's generous payments will set a new standard, O'Neill says.
Other states, including Maine, New Jersey and New Mexico, are also exploring direct relief payments to their residents, he notes. Other states are discussing gas tax holidays.
However, most states' legislative sessions are done for the year.
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