All around California, Americans hoping to get another stimulus check might receive one, given that $31 billion are expected to be surplus in funds by next year, reported by the Legislative Analyst’s office.
Due to such an amount being available, the state will be able to give their taxpayers some benefits. This adds the possibility of stimulus checks to the list as well.
Golden State Stimulus Program
The Golden State Stimulus Program was initiated for the residents of California who are tax filers and eligible to qualify as per the Franchise Tax Board (FTB) guidelines.
For example, residents having less than $75,000 yearly income who filed their taxes before 15 October 2020 qualify for this program. The reason to introduce this program was to help the families of low to middle socioeconomic status facing hardships during the distressing times of COVID-19.
This pandemic has been a setback and financial trouble for millions and billions across not just California but the world. So this one-time payment of $600 to $1200 was one of the government’s initiatives to help Californians.
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Now the residents are anticipating that this program will not be terminated, and two more checks will be given out in the upcoming year 2022. For now, around 9 million people around the state are expected to receive their checks before the end of 2021.
All these checks getting sent out are a part of California’s Comeback Plan. Newsom had kept $12 billion specifically for the payment of these stimulus checks. The most recent round of checks is being sent out currently.
Gavin Newsom’s Plan
The Governor of California, Gavin Newsom, shared his plan of investing this money in the infrastructure.
He has assured that the way we “framed” the surplus last year, this time, they will have a similar “approach” for the next year as well. He said he will come to a decision that he thinks is “in the best interest of 40 million Californians.”
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The Probability of Another Round of Stimulus Checks
Americans are still recovering from the after-effects of COVID-19. The stimulus checks are being used to make ends meet, pay off debts and survive the period of unemployment.
The rate of unemployment still stands higher than in the pre-pandemic period. The inflation surge is also to be kept in mind. Hence, top economists have signed a letter that supported “recurring direct stimulus payments lasting until the economy recovers.”
However, it seems highly unlikely as now the Biden administration has shifted its focus to the infrastructure plan. This plan would help improve and reshape the economy by renovating or rebuilding old schools, roads, airports and so on.
It is not yet confirmed whether there will be such huge direct payments in 2022 or even if the stimulus checks will be given out, to begin with. In any case, the surplus funds in the budget will absolutely aid in improving the lives of residents of California.
Reducing taxes, stimulus checks, and improvement of public schools are just a few of the many possibilities. The new budget is most likely to be proposed in January, so it will be clear what measures are taken.