SACRAMENTO, Calif. (KERO) — To make up for the high gas and groceries prices, a proposed inflation relief plan would give millions of eligible California families up to $1,050. But there is a catch. The money is only for people who make less than a certain income level.
Governor Gavin Newsom called it the middle-class tax rebate in a recent tweet. But essentially, kind of like taxes, the less money people make a year, the more money they would get from the state.
If passed, $9.5 billion in tax refunds would be distributed among three groups.
The first group is single people making less than $75,000 or couples making less than $150,000 together who would each get $350 dollars. They get an additional $350 if they have at least one dependent.
The next group is single people who make less than $125,000 and couples who make less than $250,000 would get $250 each and the same thing if they have at least one dependant.
The last group is single people making less than $250,000 and couples making less than $500,000 would get $200 each and again the same amount if they have at least one dependant.
With those income brackets, the state expects to distribute funds to about 17.5 million California taxpayers, leaving out roughly 500,000 who make more than the limits.
But, local Assemblyman Vince Fong says it’s too late and not enough.
"I specifically asked the Newsom administration, when would this potential relief materialize. They said October, and if you are a Californian right now looking at your bank statements and you are seeing your bank accounts dwindling. October is very very far away."
Fong adds the proposed income brackets are still being figured out as they are set to vote on it this week also noting the legislative version of the budget passed Sunday night and he feels the process of approving it is being rushed.
Fong and many other Republicans and Democrats are pushing for the governor to suspend the gas tax, which is expected to pass this Friday, saying this would be a more immediate impact.
The proposed relief plan replaces the $400 rebate plan Governor Newsom has announced earlier that would have been attached to car ownership. The original idea was set to have funds in by summer but disagreement on terms by both parties has caused that delay and this new plan.