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Friday, January 21, 2022

Another incentive for the Golden State?

Californians have been getting paid over the past few months.

Checks between $ 600 and $ 1,100 made it into the mailboxes and bank accounts of about two-thirds of the state’s residents through a program known as the Golden State Stimulus.

You may have thought, as I did at the beginning, that these payments were just another form of COVID-19 relief. But because of an incomprehensible California law, the state had to send us this money – with or without a pandemic.

The same law is expected to take effect again in 2022. This means that, in all likelihood, we will have even more money in the near future.

First, a short history: Californians rebelled against taxes in the late 1970s.

Voters passed Proposition 13, the landmark property tax hike, in 1978. The following year, Paul Gunn, one of the co-sponsors of the proposal, offered another tax credit.

Gann proposed a cap on state spending: if California’s spending approaches a certain threshold (calculated by adjusting 1979 levels for population growth and inflation), the state would have to return the funds to taxpayers in the form of a rebate.

In 1979, voters overwhelmingly approved the measure, known as the “Gann limit,” and later amended the law to allow some of the excess income to also go towards funding education.

This brings us to the present day. Millions of Californians have lost their jobs during the pandemic – the state’s unemployment rate is the highest in the country – and a third of households here do not earn enough to cover the true cost of living in this expensive state.

But our state government is raking in the money. California has a record $ 76 billion surplus for the current fiscal year and projects $ 31 billion in additional revenue for the fiscal year that begins in July.

Across the country, low-income adults have been hit particularly hard by the economic crisis caused by COVID-19, while wealthier Americans have remained largely unharmed. This trend continues in California, where we also tax our wealthy at very high rates.

“The uniqueness of the California situation is that we have extreme inequalities in wealth and income,” said Chris Hohen, executive director of the California Center for Budget and Policy. “We also have a tax structure dedicated to generating this income.”

At the end of 2020, Governor Gavin Newsom was planning a fiscal year starting in July 2021. Projections have shown that the state could push the billions of dollars in Gann’s limit.

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State law did not require the governor to act within the limit for another two years. But in the fall Newsom faced the prospect of recalling the election.

So in January, Newsom announced the Golden State Stimulus, which he called the largest state tax credit in U.S. history. A few months later, the state began distributing roughly $ 12 billion to Californians who earn $ 75,000 or less a year.

The state’s legislative analyst’s office now predicts California will have a surplus of $ 31 billion for the fiscal year that begins July 1, 2022. How exactly Newsom will avoid crossing the Gann limit this time around will not be clear until he publishes his budget proposal. in January.

While the Golden State Stimulus program helped Californians hardest hit by the pandemic, some argued that the very people who contributed the most to the state’s income were unfairly excluded. But Newsom recently hinted that he plans to build on this year’s plan.

“I am very proud of the historic tax rebate,” Newsom said at a press conference last month. “And I look forward to making a decision that I believe is in the best interest of 40 million Californians.”

Chocolate Pecan Bars.

Today’s travel tip came from Bob Bruno, a reader living in Discovery Bay:

California State Route 160, the southern branch, runs from the Antioch Bridge along the Sacramento River all the way to Sacramento. This is a great trip, especially in the spring.

There are several points of interest along the route: the Ryde has a Sunday brunch, the city of Locke, built by Chinese immigrants in 1918 and containing a beautiful garden and playroom museum, pear orchards, beautiful houses and of course the Sacramento River.

I often ride it and love it. “

Tell us about your favorite places in California. Send your suggestions to [email protected] We will explain more in the next editions of the newsletter.

11 new books this week.

Happy Days is here again.

Actor Henry Winkler is auctioning costumes, props, and other memorabilia of his career, including the leather jacket and motorcycle of his favorite character, Fonzie.

According to KABC, the entire Fonz outfit – jacket, Levi’s jeans, white T-shirt and black boots – is expected to sell for $ 50,000- $ 80,000 at Bonhams auction in Los Angeles on Wednesday.

World Nation News Deskhttps://www.worldnationnews.com
World Nation News is a digital news portal website. Which provides important and latest breaking news updates to our audience in an effective and efficient ways, like world’s top stories, entertainment, sports, technology and much more news.
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