California’s leadership has given the go-ahead for a $100B plan that will speed up the economic revival of California, one of the states most affected by the pandemic. The aid package includes rent relief, business grants, and stimulus checks.
The plan was initially proposed by Gov. Newsom two months back. Yesterday he finally signed the legislation that is a reflection of most of the 2021-22 state budget proposal. Named the California Comeback Plan, Gov. Newsom’s plan aims at the economic recovery of the state from the economic downturn following the pandemic.
Stimulus Checks Continue To Be The Biggest Draw Of The Golden State Stimulus
One of the biggest draws of the plan is the direct stimulus check for a majority of its residents. The plan makes available immediate cash to the middle-class residents and businesses that have been affected the most by the economic downturn caused by the pandemic. It is by far the biggest tax rebate declared by a state in the nation’s history and also the biggest relief package for small businesses in American history.
Gov. Newsom declared that the stimulus check and other plans would be funded partially through a drastic increase in revenues from a resurgent economy, and through the federal funds. California follows the progressive structure of income tax. So the higher you earn, the greater is your rate of income tax.
As wealthier Californians joined work earlier, the tax collections in the state recovered quicker. Gov. Newsom points to the $75.7B surpluses that will majorly fuel the ambitious economic stimulus plan of the state.
Gov. Newsom claimed that the stimulus check and other payments would be payable as the state has a robust fiscal foundation. It includes $235B in reserves.
A Golden State Stimulus Check awaits around 65% of residents of the state. This will be the largest tax rebate by an American state. Individuals and families will receive $600 with an added $500 for each child. There are other schemes to help small businesses, landlords, and renters, and support for utility and water bills.