California Governor Gavin Newsom, Senate President Pro Tem Toni Atkins, and Assembly Speaker Anthony Rendon have come to an agreement for US$17 billion in inflation relief for millions of taxpayers.
According to the agreement which was announced late Sunday night, here’s how the inflation relief package will be broken down:
- Individuals with income of up to $75,000 a year, or joint filers of up to $150,000, would get $350 each plus $350 for one dependent for a maximum of $1,050.
- Individuals with income up to $125,000, or joint filers of $250,000, would get $250 each plus another $250 for one dependent for a maximum of $750.
- individuals earning more than $250,000, or joint filers of $500,000, would get $200 each plus $200 for one dependent for maximum of $600.
Californians are among those paying the highest gas prices in the country. Newsom’s initial proposal was to send US$400 to vehicle owners, and up to US$800 for two cars, via the Department of Motor Vehicles (DMV) and a third-party supplier.
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The Democratic lawmakers, on the other hand, proposed to base the amount on the income brackets of taxpayers. They wanted to allocate US$200 to those earning US$125,000 per year, or US$250,000 for joint filers, with families getting an additional US$200 per dependent.
This new budget agreement will also include a US$47 billion multi-year infrastructure and transportation package, as well as a pause on the state’s diesel sales tax for a year beginning October 1.
Information for this briefing was found via Twitter, Bloomberg and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
