Please ensure Javascript is enabled for purposes of website accessibility
Newsom Pitches $600 Tax Rebates for More Californians
gvw_ap_news
By Associated Press
Published 3 years ago on
May 10, 2021

Share

SACRAMENTO — Millions of Californians would get tax rebates of up to $1,100 under a proposal unveiled Monday by Gov. Gavin Newsom, as part of a broader pandemic recovery plan made possible by an eye-popping $75 billion budget surplus.

Individuals or households making between $30,000 and $75,000 a year would get a $600 payment. Those making up to $75,000 with at least one child, including immigrants in the country illegally who file taxes, would get an extra $500 payment.

“We believe people are better suited than we are to make determinations for themselves on how best to use these dollars,” Newsom said during an event in Oakland to announce the plan.

Two out of every three Californians will will get a check for at least $600, according to a brief synopsis provided by the governor’s office. The proposal still requires approval by the state Legislature.

Budget Surplus from Wealthy Taxpayers

The massive budget surplus is largely due to taxes paid by rich Californians who generally did well during the pandemic, and marks a major turnaround after officials last year said they feared a deficit of more than $50 billion.

The payments will total an estimated $8.1 billion, said H.D. Palmer, a spokesman for the state Department of Finance. The proposal also includes $5.2 billion to pay back rent and $2 billion for overdue utility bills for people who fell behind during the pandemic.

A law passed by voters in the 1970s requires the state to give some money back to taxpayers if the surplus hits a certain limit. The state estimates it will be $16 billion over that threshold. Newsom does not have to act immediately, but is choosing to do tax rebates now, Palmer said.

They are part of what Newsom is calling a $100 billion plan to boost the state’s economic recovery. He’ll be rolling out details of the plan all week ahead of releasing his revised state budget. The chairs of the state Senate and Assembly budget committees joined Newsom, indicating their support for a proposal that will go before overwhelmingly Democratic Legislature.

Republicans Say Proposal is a ‘Publicity Stunt’ in Response to Recall Election

It comes as he faces a likely recall election later this year, and his Republican rivals quickly criticized the effort. Businessman John Cox, who campaigned alongside a bear last week for attention, accused Newsom of engaging in a publicity stunt.

“The governor’s got a lot of money to hand out. And of course, he’s worried about his own neck,” Cox said at a campaign event in Los Angeles.

He and Kevin Faulconer, another Republican candidate, both said a one-time infusion of cash wouldn’t solve California’s problems.

“Californians need permanent, real tax relief, not just one-time stimulus checks,” Faulconer, the former San Diego mayor, said in a statement.

It’s the second round of cash payments given by the state in response to the pandemic. Earlier this year, people making less than $30,000 got a $600 payment. Immigrants making up to $75,000 who file taxes, including those also living in the country illegally, also got the check. State officials chose a higher eligibility limit for those people because they didn’t get federal stimulus checks.

All combined, the state would spend $11.9 billion on direct cash payments.

Democratic Assemblyman Phil Ting, the chamber’s budget chair, said the state has the ability to help the neediest people because of how well wealthier Californians did during the pandemic. The state’s budget relies heavily on personal income tax from high earners.

“That budget surplus is going right back to the most vulnerable Californians, the ones who need help the most,” he said.

DON'T MISS

From Blue Cheese to Bacon: Peanut Butter Pairings That Will Shock You

DON'T MISS

Challengers Seek Seats on Tulare County Irrigation District Boards

DON'T MISS

Shy Pup Finds Hope with Foster Family, Evasion from Euthanasia

DON'T MISS

Does Dill Have Magical Powers? What People Once Believed Food Could Do

DON'T MISS

Let’s Keep Innovative Partnerships Crucial to Combating Climate Change: Fresno Dairy Manager

DON'T MISS

Immediate Threat: Mussel Invades California’s Delta, First Time in North America

DON'T MISS

Two-Time Cy Young Winner Blake Snell Opts Out of Contract with Giants

DON'T MISS

No Matter the Outcome, We Are the True Losers of This Election

DON'T MISS

Russia’s Swift March Forward in Ukraine’s East

DON'T MISS

Rapper Young Thug Is a Free Man. Here Are Things to Know About His Plea.

UP NEXT

Lyft Pays $2.1 Million to Settle Case Alleging the Ride-Hailing Service Deceived Drivers

UP NEXT

Southern California County Official Pleads Guilty to Bribery Charge in COVID Funds Scheme

UP NEXT

Visalia Rollerblader Suffered Major Injuries After Being Struck by Vehicle

UP NEXT

Fresno County Man Indicted for Possessing Stolen Guns

UP NEXT

Anti-Semitic Incident at Oakland Cafe Raises Concerns About Rising Intolerance

UP NEXT

Schwarzenegger Endorses Harris, Warns Against Another Trump Term

UP NEXT

Will Noncitizens Be Able to Vote? This California City Will Decide Their Fate

UP NEXT

California Voters Consider Controversial Vacation Homes Tax in Iconic Lake Tahoe Area

UP NEXT

Los Angeles Sees Bus Burned, Store Thefts and Rowdy Crowds After Dodgers Win World Series

UP NEXT

On Elon Musk’s X, Dems Are an Endangered Species While GOP Goes Viral

Does Dill Have Magical Powers? What People Once Believed Food Could Do

3 hours ago

Let’s Keep Innovative Partnerships Crucial to Combating Climate Change: Fresno Dairy Manager

4 hours ago

Immediate Threat: Mussel Invades California’s Delta, First Time in North America

15 hours ago

Two-Time Cy Young Winner Blake Snell Opts Out of Contract with Giants

16 hours ago

No Matter the Outcome, We Are the True Losers of This Election

16 hours ago

Russia’s Swift March Forward in Ukraine’s East

16 hours ago

Rapper Young Thug Is a Free Man. Here Are Things to Know About His Plea.

17 hours ago

AMOR Wellness Trunk-or-Treat Brings 700 Mendota Residents Together for Halloween Fun

17 hours ago

What Kind of Trouble Is Miguel Arias Trying to Stir Up This Time?

17 hours ago

MrBeast Probe Ends With Some Employees Fired but Finds No Proof of Sexual Misconduct Allegations

17 hours ago

From Blue Cheese to Bacon: Peanut Butter Pairings That Will Shock You

Peanut butter is a childhood staple for many in the United States. Whether it’s a classic PB&J sandwich, a fluffernutter, cookies ...

2 hours ago

2 hours ago

From Blue Cheese to Bacon: Peanut Butter Pairings That Will Shock You

2 hours ago

Challengers Seek Seats on Tulare County Irrigation District Boards

2 hours ago

Shy Pup Finds Hope with Foster Family, Evasion from Euthanasia

3 hours ago

Does Dill Have Magical Powers? What People Once Believed Food Could Do

4 hours ago

Let’s Keep Innovative Partnerships Crucial to Combating Climate Change: Fresno Dairy Manager

15 hours ago

Immediate Threat: Mussel Invades California’s Delta, First Time in North America

16 hours ago

Two-Time Cy Young Winner Blake Snell Opts Out of Contract with Giants

16 hours ago

No Matter the Outcome, We Are the True Losers of This Election

Search

Send this to a friend