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With inflation rising to 7.9% in February and consumer prices the highest in 40 yearsMore than a dozen states already have or are considering putting money back into consumers’ wallets by sending their residents one-time checks.
Other state legislators are proposing sales, income or property tax cuts and shelving gas taxes in an attempt to mitigate the blow of these record-high food and gas costs.
These tales of generosity come at a time when most states are experiencing an influx of tax revenue collected during the previous fiscal year and a buffer of federal pandemic funding. These large state surpluses and an optimistic economic recovery are causing many governors to open their coffers to help its citizens, who have been hit hard financially during the pandemic.
In most cases, tax breaks and rebate checks are just temporary relief. Critics argue that these controls will not help cover rising costs that people face and that tax suspensions are diverting money away from where it is needed. In fact, most state governments will lean toward relief that has a small but immediate effect instead of changing the current tax formulas.
Whichever route a state takes, it seems that most, or all, will eventually issue limited assistance to mitigate the soaring price shocks felt most grippingly by gas pumps and shopping lines.
According to the AAA, the national average for unleaded gasoline jumped to a high of $ 4.33 per liter. gallon on March 11, and the consumer price index says the price of gasoline rose 6.6% in February 2022, an increase of 38% from a year ago. It is expected that the average family will pay an estimated $ 2,000 in additional costs this year alone due to the higher gas prices.
Food prices have risen 7.9% over the last year. For this year, the USDA expects menu prices for food away from home (restaurants, food service companies) to rise 5.5-6.5%, which would be a higher increase than in 2020 and 2021, and historically higher than average. Food-at-home prices (groceries) are expected to increase 3-4%.
Many of the state’s spending plans are still being finalized. But here’s what some states are proposing in terms of discounts:
California – Given the state’s unusually high gas prices, Governor Gavin Newsom is proposing direct payments of $ 400 per tonne. vehicle for residents of California (two vehicles maximum). If enacted into law, checks can arrive before July.
Georgia – A few weeks ago, Governor Brian Kemp signed a bill for taxpayers who have filed tax returns for both 2020 and 2021 to receive rebate checks of $ 250 (single branches), $ 375 (household heads) or $ 500 (married joint branches).
Hawaii – In January, Governor David Ige proposed sending a $ 100 refund to each taxpayer and their relatives. By reimbursing the residents, it is hope that will add $ 110 million back into the state economy.
Idaho – A tax rebate law was signed in February by Governor Brad Little. Each taxpayer will receive $ 75 or 12% of their 2020 Idaho tax return, whichever is the greater amount.
Indiana – According to the Indianapolis Star, residents will receive $ 125 each after filing their 2002 tax due to higher expected tax revenues.
Maine – With the claim that Maine residents will spend $ 560 more this year than last, Governor Janet Mills wants residents to receive $ 850 as part of the state budget bill.
Minnesota – Governor Tim Walz’s plan to use the state’s budget surplus includes a proposal to issue $ 1,000 checks per year. couples in income tax deductions.
New Jersey – When Governor Phil Murphy was up for election last year, the New Jersey legislature included cash checks of up to $ 500 for about one million families in its budget.
New mexico – In March, Gov. Michelle Lujan Grisham signed legislation to provide $ 250 rebate checks to all individuals ($ 500 for married couples). These rebates are like federal government stimulus controls in that they have income limits. Single files with an income of up to $ 75,000 are eligible (pairs up to $ 150,000).
New York – Through a $ 1 billion property tax rebate program, an average benefit of about $ 970 for homeowners outside of New York City is proposed by Governor Kathy Hochul.
Virginia Details and amounts have not been decided, but according to local news media Wavy.com, it is expected that each person will receive a tax deduction of $ 250 or $ 300 ($ 500 or $ 600 for married couples).
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