On Friday, May 27, a gas station in Sacramento is advertised for over $6 a gallon of gas.
Sacramento, California – Most California households get up to $1,050 from the government to put the country’s most expensive gasoline in their cars. This is part of an aid package in the state’s record-breaking operating budget that was later approved by lawmakers. determined to be approved by Week.
The proposal would send cash directly to taxpayers instead of suspending the state fuel tax, which accounts for 51.1 cents per gallon of price at the pump and will rise about 3 cents on Friday.
While some other states are withholding their fuel taxes and Democratic President Joe Biden has called for the national gas tax to be suspended, Democrats who control the California government have balked, saying not to trust big oil companies and refiners. Pass the savings on to drivers.
Instead, California officials plan to send $9.5 billion to about 23 million people — about 10% of the state’s record-breaking $97 billion budget surplus. The money will go to people even if they have a car, but only couples making less than $500,000 a year and single people making less than $250,000 a year are eligible to receive it.
Those who buy 15 gallons of fuel twice a month have to pay about $194 a year in California gas taxes. Meanwhile, the lowest amount a family can receive under this plan is $200 for a person without children who earns $250,000 or less per year. The most money a family receives is $1,050 for a married couple whose children earn $150,000 or less per year.
“I think Californian families would love to see their savings go into their own pockets,” said Democratic Rep. Wendy Carrillo. “The savings and fuel rebates we are currently proposing are much better.”
The Newsom government said it would be October when taxpayers would receive the money, or 10 months into a year of record-high gas prices. Republicans criticized the move, saying motorists could always save if the state had suspended fuel taxes early.
“A lot of waiting, talking and investigating. People need relief now,” said Assembly Republican leader James Gallagher.
The proposal is the centerpiece of California’s $307.9 billion operating budget that is expected to be approved by lawmakers later this week. Despite initial gloomy estimates, California’s revenue has skyrocketed during the pandemic, resulting in a record surplus.
All of that money has allowed lawmakers to expand many government programs. One of the most impressive would be the provision of federally funded healthcare services to all low-income adults, regardless of their immigration status.
Currently, people illegally residing in the country can only qualify for California’s Medicaid program if they are 26 years of age or younger or 50 years of age or older. The budget stipulates that by 2024 anyone who meets the income requirements will be covered — costing taxpayers $2.6 billion a year.
“This budget investment reflects California’s values of inclusion and fairness and should be a model for the rest of the country,” said Sarah Darr, director of health and welfare policy at the California Immigrant Policy Center.
The budget will leave $37.1 billion in state savings accounts to prepare for a future economic downturn. While California’s earnings have remained strong, the Office of the Independent Legislative Analyst says the economy has shown signs of slowing down as inflation remains high and home sales have fallen due to a sharp rise in mortgage rates.