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Millions of California families would receive cash rebates of $200 dollars per person under a detailed plan unveiled Thursday by state Senate Democrats, with additional increases for those enrolled in government assistance and subsidies provided to small businesses that could last for a decade, according to information from the Los Angeles Times
The effort to spread the state’s huge fiscal surplus stands out among Gov. Gavin Newsom’s recent proposals to provide one-time cash payments in response to the recent increase in gasoline prices, just as a state gas tax increase looms on the horizon in July.
Instead, legislative leaders have insisted on a broader approach in response to the effects of inflation. n in Californians.
“With the new revenue available for this year’s state budget, the Senate is doubling down on our priorities,” Senate President Pro Tem Toni Atkins, D-San Diego, said in a written statement.
In all, Democrats said Thursday they think the state will have about $68 $1 billion in excess tax revenue over the next 14 months that can be used in various ways to boost government services, as well as the state’s cash reserves.
The estimate is based on preliminary data from April tax collections. A more detailed projection is expected in two weeks when Newsom presents a revised state budget plan.
But all indications are that the dollar count of the state tax is historic, even after nearly a decade of record-breaking windfalls that helped remake California’s state budget.
Atkins He said Thursday that the large surplus would allow the state to “help even more people, strengthen their ability to achieve their dreams and ensure there will be resources and a more equitable system” for the future.
Senate Democrats have proposed spending $8 billion on one-time cash rebates for families with adjusted annual income less than $200,000 dollars: $200 dollars per taxpayer and other $200 for each child not.
For a family of four who meets the income requirements, the state would provide a tax refund of $800 Dollars. Leaders of both legislative chambers adopted a similar idea last month.
By comparison, the gas price relief plan touted last month passed through Newsom would cost $9 billion dollars and is limited to vehicle owners with additional subsidies for public transportation.
The governor also sought to stop the scheduled increase in gasoline taxes for this summer, an effort that was subject to a deadline this week for state officials to begin preparing for the policy change.
In the absence of a last minute agreement, the California excise taxes on fuel will increase on July 1 by approximately three cents per gallon for gasoline and two cents per gallon for diesel.
Those numbers are subject to final state consumer price index calculations o.
A bipartisan group of state lawmakers released their own plan Thursday that focuses on gas prices, calling for a suspension of 12 months of current California excise tax of 51 cents per gallon.
Those taxes are expected to total nearly $7 billion in the current state fiscal year that ends on 30 June.
But the Senate Democrats’ plan proposed Thursday goes far beyond rebates to cover gas costs.
Democrats also proposed subsidies to California small businesses that will soon have to make new payments to cover the cost of COVID unemployment claims-19.
The benefits unemployment benefits paid during the height of the pandemic were covered by a federal government loan that is scheduled to be repaid, in part, with higher payroll taxes for employers.
Last month, a legislative analysis estimated that a typical employer will pay $21 dollars per year plus per employee in 2023 and up to $189 dollars per employee for 2031.
Democrats said Thursday they would commit to a subsidy of $10 $1 billion for companies with up to 250 employees, paid over the next decade.
A Broadly speaking, the Senate Democrats’ plan would use most of the state’s discretionary fiscal surplus on one-off items.
Families enrolled in the program state welfare agency, CalWORKs, would be eligible for an additional subsidy.
Low-income Californians with disabilities would also receive a supplement to their Benefits. And the grants would be available to low-income residents whose immigration status keeps them out of the traditional tax filing process. Billions more would be added to the state’s cash reserves, including “hard day” funds that were created after California’s last recession for schools and social service programs.
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