A California budget plan calling for as much as $1,050 deposited into the bank accounts or distributed via debit card to California taxpayers is in the works. However, Californians may not see the funds until October or later, the Los Angeles Times reported.
Although the deal was announced on Sunday, June 26, it has not yet been voted on in the state Senate and Assembly. If the plan passes, California taxpayers could receive a total of $9.5 billion in state tax refunds.
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State politicians had argued against including the state’s wealthiest residents in the plan. But the income caps ended up being nearly double what was originally proposed. Payments will go out on a sliding scale based on income, but the refund disappears for individuals making more than $250,000 and joint filers making more than $500,000.
Under the plan, individuals earning up to $75,000 per year would get $350. Those figures would double for joint filers. Households with dependents can receive an additional $350, up to a maximum of $1,050.
Single filers earning up to $125,000 would get $250. Again, those numbers would double for joint filers, and households with any dependents would get an extra $250, for a total payment of $750.
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Individuals in the state earning up to $250,000 would get a $200 payment, and joint filers earning up to $500,000 would get $400. Dependents for households at this income level would qualify the taxpayers for an extra $200, for a total payment of $600.
The tax refunds are just part of a total $17 billion inflation-relief package. In a joint statement released Sunday, Governor Gavin Newsom, Senate President pro Tempore Toni Atkins and Assembly Speaker Anthony Rendon said, “Twenty-three million Californians will benefit from direct payments of up to $1,050.”
The budget plan also includes the suspension of state sales tax on diesel fuel, and additional assistant for residents struggling to pay rent and utility bills. The California state gas tax, however, will remain in effect.
California drivers are currently paying the highest gas prices in the nation — at $6.30 per gallon as of the morning of June 28 — compared to a national average of $4.88, according to GasPrices.AAA.com.
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