400 Gas Check - In California, US, Democratic state legislators are calling on taxpayers to receive a $400 tax credit check to help offset the rising cost of everyday goods and services, such as gas prices.
While it has yet to be formally decided, progress has been made in that direction. The idea is that every California resident who pays state income tax will pay a $400 deduction to help offset the impact of rising costs, regardless of how much they earn. Since taxpayers would go to individual taxpayers, the couple would receive $800.
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There are those who believe the deduction will be decided when the Legislature and Governor Gavin Newsom agree on the entire state budget, which is usually by the end of June, but MP Coty Petrie-Norris (D-Irvine) has called for that. The money will be sent as soon as possible
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"Our goal is to do it in the spring and everyone here will really accelerate," Petrie-Norris told a press conference on Thursday.
The administration is hoping for a budget surplus of about $45 billion, so there will be plenty of money to help Californians.
“Right now, there is an urgent need because of higher costs in all areas, not just gas, but all our daily living expenses. People need relief now," said Republican Assembly leader James Gallagher of Yuba City.
According to Petrie-Norris, the $400 tax deduction is used because it is similar to the amount most Californians pay in the state gasoline excise tax.
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On average, California drivers refuel 52 times a year, and the gas tax is 51 cents a gallon.
The bottom line is that both Democratic and Republican leaders are in agreement on this because they want to help Californians who have been negatively impacted by higher gas prices in addition to the rising cost of food, housing and more. .
Another option that can happen if they decide to send a tax refund is to change the state fuel tax rate. October
Fees range from $400 to $1,050 for couples filing jointly and $200 to $700 for others, depending on income level.
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The state said it started transferring money two weeks ago, but payments are declining, said Hisham Ford, chairman of San Diego State University's economics department.
"The last big problem is that people could see messages like, 'Oh, we're going to get that money,' and they could change their behavior," said Ford.
The state is currently in the first phase of sending tax returns, with the next batch beginning to receive payments from October 24.
Those who filed their taxes electronically in 2020 and received a direct deposit refund will receive direct deposit payments by November 14.
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Other filters should expect to receive money in the mail on debit cards by January 2023.
"Some may have postponed the purchase because they expected to receive the check by the end of October. "If this is to be delayed until November or even later, it could potentially cause some problems," Fodd said.
“But of course not everyone understands this. To get this relief, you must file a tax return - or pay tax, said Ford. "And there are a lot of people who are more affected by inflation and have really low incomes who didn't pay taxes last year."
The Franchise Tax Board expects to issue about 8 million deposit cards and 10 million debit cards by early next year and is expected to announce a more precise date next month.
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Second Batch Of California Inflation Relief Checks Go Out Monday
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