Stimulus Update: State-Sponsored Stimulus Checks to Help Combat Inflation
- Globally, inflation stands at 7.9% year over year.
- At least 10 states are providing stimulus of some sort.
Stimulus may only be a Band-Aid, but every little bit helps.
Given the high cost of just about everything, it can be tough to remember that the entire world currently suffers from inflation. According to Barron's, the median global inflation is now 7.9% year over year. And while we know that inflation (and even recessions) are a normal part of the economic cycle, that knowledge makes it no easier to pay for groceries, gasoline, or housing.
Some states are stepping into inflationary concerns, providing residents with relief, albeit minor in some cases. In some states, payments have already been distributed to residents. In others, plans are in the works. These states include:
Governor Gavin Newsom has spearheaded a plan to send stimulus checks up to $1,050 to millions of California residents in an effort to relieve the pinch of inflation. The exact amount received will depend on income and if there are dependents in a household.
According to the Franchise Tax Board, direct deposit or debit card recipients should receive payment by late October, with all rebates issued by the end of 2022 or early 2023.
Individual tax filers in Colorado are set to receive a $750 tax rebate this summer and joint filers will have an extra $1,500 in their bank accounts, thanks to legislation signed by Gov. Jared Polis in May.
According to the Colorado Department of Revenue, anyone who has already filed their state tax return is all set and can expect to receive the funds by Sept. 30, 2022.
For state residents who plan to file by the extended tax deadline of Oct. 17, their checks will arrive by Jan. 31, 2023.
Gov. David Ige also signed legislation providing state residents with an unexpected tax rebate. According to the governor's office, individuals earning less than $100,000 and couples earning less than $200,000 annually will receive $300. Individuals earning $100,000 or more and couples earning $200,000 or more can expect $100.
Payments will begin going out the last week of August.
Gov. J.B. Pritzker recently announced a plan to waive taxes on everyday, essential items like gasoline and groceries. In addition, depending on income and number of dependents, Illinois residents are eligible to receive individual income and property tax rebates up to $300. Rebates are expected to begin being issued the week of Sept. 12.
Other states with plans in the works are:
- New Mexico
While stimulus is not going to make anyone rich, help paying for an extra tank of gas or week's worth of groceries will mean the world to many.
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