Many Americans received three stimulus checks as part of the federal response to COVID-19. Californians will take fourth place this September.
California Governor Gavin Newsom signed a state budget proposal Friday that includes funding for another round of stimulus checks for Californians still battling the pandemic.
Here’s everything you need to know, including who is eligible and how to get one-time payments.
How Can California Afford These Stimulus Checks?
It’s easy why California can afford to offer more stimulus checks than other states: Its progressive tax rate has seen a jump in state revenue.
According to Cal Matters, a non-profit publisher dedicated to explaining how California’s state capitol works, California’s progressive income tax (when tax rates rise with income) reported additional revenue compared to projected revenue in January. Contributed $10.3 billion.
During the pandemic, the state’s wealthiest people were not as badly affected by the pandemic as others. Also, many of them are in the technology sector, which saw high profits during the pandemic; Total capital gains in California reached approximately $174B in 2020.
Details on the California Stimulus Check
Golden Gate Stimulus, a $3.8 billion deal passed in February, offers new stimulus checks to Californians. This includes one-time incentive checks for eligible individuals.
California will send a total of 5.7 million payments, with two out of every three Californians eligible. Eligible taxpayers in the state (between $30,000 and $75,000) will receive a one-time payment of $600. Individuals who qualify with an ITIN (Individual Taxpayer Identification Number) — typically immigrants and undocumented employees — will receive an additional $600, and taxpayers with dependents will receive an additional $500.
Expanding the criteria to individuals who filed ITINs with the government was a strategic move by Newsom, which includes immigrants and undocumented individuals who were excluded from previous federal stimulus payment rounds.
Article inspiration:- Forbes.com