$600 Stimulus Checks to Go to Majority of People in California
Gov. Gavin Newsom unveiled a new $100 billion proposal Monday for what would result in about $12 billion of direct payments and another $5 billion in renter’s insurance.
The governor previewed his “California Comeback Plan,” the largest economic recovery package in the state’s history, as investments to “tackle five of California’s most persistent challenges.”
Acting as a tax rebate, the proposal will provide direct payments to families that make $75,000 and under. Newsom’s office claimed that two-thirds of Californians will benefit from $600 payments under this plan and qualified families with dependents will also be eligible for an additional $500. This sum would be per family, not per dependent.
California is already in the process of sending $600 payments to residents who fall under the $30,000 income bracket, CNBC reports. Those payments went to residents who filed both with social security numbers and individual taxpayer identification numbers. Newsom’s new state stimulus checks will also be available to undocumented residents.
Newsom’s plan also includes $5 billion in assistance for renters. His office claims billions of dollars will be distributed to help “low-income Californians pay back 100 percent of their back-rent, their rent for the months to come and overdue water and utility bills.”
Additional details are expected later in the week.
The proposal must first pass through the state legislature before payments can begin to be distributed.
According to Richard Auxier, senior policy associate at Urban Brookings Tax Policy Center, California’s income tax structure enabled it to collect levies for the wealthy, “many of whom did really well in the past year, thus creating the budget surplus,” CNBC reported. That money will now pass through to help fund some of the programs Newsom is proposing.
California has a progressive income tax structure, where the wealthiest pay the greatest amount in tax. Other states like New York and Hawaii also have a progressive income tax system, but were hit harder by the pandemic in areas California was not.
More From GOBankingRates
- Money’s Most Influential: Where Do Americans Get Their Financial Advice?
- Don’t Miss Out on Nominating Your Favorite Small Business To Be Featured on GOBankingRates — Ends May 31
- ‘Rich Dad Poor Dad’ Author Robert Kiyosaki: You Should Never Say ‘I Can’t Afford That’
- Everything You Need To Know About Taxes This Year