With February inflation rates to 7.9%, and consumer rates at a 4 decade high, several states are making plans to help consumers tide over the latest crisis to hit them immediately after the COVID-19 pandemic. While the federal administration has stopped sending any more stimulus checks, for now, it is the states that are placing some money into the wallets of senior citizens.
While the lawmakers of several states are proposing cuts in income, sales, and property tax, others are setting aside gas taxes to lessen the pain of the high cost of gas and other essential items.
The generosity of the states has also extended to stimulus checks even as they are enjoying an influx in tax revenues raised over the past year and the federal COVID-19 aid funds. This huge surplus with several states and also the recovery of the economies has prompted state governors to set aside a generous part of the surplus funds towards stimulus checks for their residents.
Direct Relief In The Form Of Stimulus Check More Effective Than Alteration Of Tax Structures
Critics say that rebate checks and tax relief are not sufficient to offset the rising cost of living, especially the soaring gas prices. Most states are concentrating on direct stimulus check reliefs that will have a more immediate relief than merely altering present tax structures.
The average price for unleaded gas has already crossed the $4.33 per gallon mark. In February alone the prices spiked 6.6% while they reached 38% up from last year. The additional burden for an average family is expected to jump by $2,000 in 2022 just for gasoline expenses. Food prices are also up 7.9% over 2021. Food for outside homes is set to rise from 5.5% to 5.6%.
California is the first on the mark with the Governor, Gavin Newsom proposing a direct stimulus check of $400 per vehicle, with a maximum of 2 vehicles allowed per family. Residents of Georgia will get a rebate stimulus check of $250 for single filers and double that for married joint filers. Hawaii has proposed $100 in refunds for taxpayers and dependents.