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Sunday, November 27, 2022

How Soon Will Your State Send Stimulus Checks? Fear Of Inflation Discourage Some States

The record inflation rate has stayed at a high for almost a year now and has left low and moderate-income citizens desperate for some form of support from the administration. And will little help forthcoming from the federal government, it is for the states to move in with relief for their residents with some form of stimulus checks.

Around 21 states have announced some form of stimulus checks either as direct bank transfers, paper checks, tax rebates, sales tax waivers, or even debit cards. Of these over a dozen states are currently distributing payments or will soon start distributing inflation relief.

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Most states have linked stimulus checks to the filing of their income tax returns and resident status in the state. While most states have stipulated earning as the criteria for a stimulus check, some states are giving an equal amount to all residents, irrespective of their earning status.

Republicans And Some Experts Believe That State Stimulus Checks Will Further Worsen The Inflation Situation

Despite all states equally benefitting from the support given to local and state governments under the American Rescue Plan Act signed by President Biden in March 2021, less than half the states have moved ahead to support their residents.

Stimulus Check
Stimulus Check

The opposition Republican camp believes that state stimulus checks would be a further step in the wrong direction as they have blamed the third stimulus check for all the present economic woes. They contend that it will be a fruitless attempt to combat inflation.

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They have pointed out that pumping too much money directly into the hands of citizens only led to a demand and supply mismatch as too much money chased too few goods as people shifted from services to products when it came to spending the stimulus check dollars.

Stimulus Checks Only Recourse At This Stae To Send Immediate Relief

But economists contend that state stimulus checks will not make inflation worse, but concede that they are not the best solution to control inflation. They point out that it is only a temporary relief measure and not a lasting solution. The economy has to be strengthened to bring about any lasting solution.

Republicans have blamed President Biden and his Rescue Plan and the economic impact payment, or the third relief check, for the mess. But states controlled by the Republicans have not stepped back when it comes to sending out Rescue Plan funds to their residents and easing the pain of high prices.

Experts aver that there is little reason to worry that the state stimulus checks will make inflation worse. Instead, Americans should worry about what governments are doing to stop inflation at the source.

Eighteen states including California, Idaho, Indiana, and Colorado have already rolled out tax rebates recently that are designed to provide need relief to households. These funds will help balance out the impact of soaring prices across the economy.

This is especially vital as Americans have been facing negative income in real terms thanks to the record inflation despite a healthy rise in wages after the pandemic.

Stop Inflation At Its Source, Say, Economists

Some economists say that there is little evidence that the artificial injection of money into an economy halts inflation. A section of experts and economists, mostly from the Republican camp has determined that the $1.9T Rescue Plan and the third stimulus check was the most significant factor that fuelled the highest inflation in 40 years.

Prices are cooling down on their own for some days now, so pumping more money into an overheated economy is never a good idea, they aver. Some experts maintain that funds that should have ideally been used for development work are instead being injected directly into the economy which is causing double harm. While developmental projects are struck due to a lack of funds, the economy gets further overheated.

Democratic-ruled California, which has a $98 billion budget surplus this year has been late off the mark with what is effectively their third stimulus check. but they have approved a whopping $17 billion towards inflation relief payments, also known as government cash.

Residents of the Golden State will be receiving stimulus checks of $350 if their AGI is below $75,000 for 2021. For joint filers, it will go up to $700 if their combined earnings are below $150,000. They will get another $350 extra for one dependent only.

The stimulus payments from the California administration have been divided into three income slabs with the highest at $500,000 maximum for joint filers and $250,000 for individual filers. They will get $200 each plus another $200 for one dependent. So the highest amount given by California under this round of stimulus checks comes to $1,050.

Colorado residents who have filed their returns for 2021 before end-June will get a $750 stimulus check by Sept. 30 under the Taxpayer’s Bill of Rights, or TABOR. Joint filers will get double that. Governor Jared Polis sighed the bill to send refunds that started going out in August. Filers who filed for an extension will have their stimulus check delayed till the end of January next year.

Stimulus Check
Stimulus Check

The Delaware Relief & Rebate Program will give residents a $300 inflation relief stimulus check. all residents who have filed their returns for 2020 will get the payment. Joint filers will each receive the same amount.

Foster parents, related and non-related caregivers, and people on welfare will receive a stimulus check from the Republican administration of Florida under Governor Ron DeSantis. The one-off $450 stimulus check will be funded through the Rescue Plan funds.

The Florida stimulus check was a surprise given that Gov. DeSantis is a staunch opponent of stimulus checks. The 2024 Presidential hopeful has been vehement in attacking President Biden and his policies but has used the funds to fuel his schemes, the Guardianship Assistance Program.

Georgia’s Governor Brian Kemp has authorized taxpayers rebates of $ 50 for individual filers and double that for married couples filing jointly. Household heads will get a $375 stimulus check. Residents of Hawaii earning below $100,000 will receive a $300 stimulus check, while those earning above that AGI will get $100. Idaho is giving a $75 check to taxpayers and the same amount to dependents or 12% of the tax paid for 2020, whichever is higher.

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