Cali. residents receive up to $1,050 in ‘inflation relief’

About 23 million California residents who earn less than $250,000 a year will receive a check from the state government to help alleviate the inflation that has sent key prices soaring. commodities such as food and gas are rising enormously.

California Governor Gavin Newsom and the Democrat-controlled legislature agreed last week on a $17 billion plan to provide aid to struggling residents who are part of the highest gas prices in the country.

“Millions of Californians will receive up to $1,050 as part of NEW middle class tax relief,” Newsom tweeted Monday.

“That’s more money in your pocket to help you fill your gas tank and put food on the table.”

Consumer prices rose 8.6% last month from a year earlier, faster than the 8.3% year-on-year increase in April. The new inflation rate is the highest since 1981.

Californians have had to bear the brunt of rising inflation rates that have made key commodities such as food and gas more expensive.
Californians have had to bear the brunt of rising inflation rates that have made key commodities such as food and gas more expensive.
EPA

Millions of Californians will receive either direct deposits into their bank accounts or debit cards from Sacramento, according to Politico

The plan calls for those making less than $75,000 to receive $350. Joint applicants who collectively earn $150,000 or less will receive $700 and an additional $350 if they have dependents.

The most anyone can hope to receive is $1,050.

Those earning $125,000 or joint applicants with a combined income of $250,000 will receive $250 or $500 combined, as well as an additional $250 for dependents. Payments to earners in that tax bracket would be capped at $750.

Californians who earn more than $250,000 or $500,000 when applying jointly will each receive $200 plus an additional $200 for a dependent for a maximum of $600.

The most recent state budget calls for a $47 billion multi-year infrastructure and transportation package, as well as a pause in the state tax on diesel sales for a year beginning Oct. 1.

But there will be no break for the petrol tax, which is expected to be increased on July 1.

As of Tuesday, the average price of a gallon of gasoline in California is $6.31 — the highest in the nation, according to AAA.

In some parts of the state, including Alpine and Mono counties near the Nevada border, the average price of a gallon of fuel ranges between $7 and $8.

As of Tuesday, motorists in the Golden State were paying an average of more than $6 a gallon.
As of Tuesday, motorists in the Golden State were paying an average of more than $6 a gallon.
EPA

Californians pay more for fuel because of the state’s gasoline tax, which accounts for about 40% of the cost. Motorists in the Golden State pay an additional 51.1 cents per gallon — the second-highest gas tax in the country after Pennsylvania, according to the Federation of Tax Administrators.

The state plans to increase that tax from July 1, when it will reach 53.9 cents per gallon — a 5.6% increase. State officials say the gas tax hike is necessary to keep up with inflation.

California gas is also more expensive because of the state’s regulatory programs aimed at combating climate change. Those programs add another $1.27 to the cost of a gallon of gas, according to data quoted by The New York Times.

The state’s gas is also more expensive because California has to import most of its fuel, mostly from Alaska or other countries like Ecuador, Saudi Arabia and Iraq. California has no interstate pipelines that carry gas to the state.

Supplying gas by ship or truck is more expensive.

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