While several states are considering sending stimulus checks or a tax refund to their residents to offset the country’s highest inflation in four decades, coupled with rising prices due to supply chain disruptions and war in Ukraine; Many Americans wonder if it is possible for the federal government to issue a new stimulus check or some kind of direct relief.
Analysts had predicted that the pandemic would eventually decimate state budgets; however, states like New Jersey and Connecticut enjoy a surplus that would allow them to provide direct financial assistance to their residents, whether in the form of state tax credits, stimulus checks or tax rebates. However, the aid plans are still on the table for lawmakers to discuss.
Other states have also gained economic stability as workers have returned to work, as well as new income tax revenues, while strong retail sales are raising sales taxes.
WILL THERE BE DIRECT FEDERAL AID?
But beyond the financial wealth in some states, households across the country are wondering whether the federal government will offer direct financial aid like that provided during the pandemic.
For now, neither President Joe Biden’s administration nor Congress plans to send any more stimulus checks for 2022. However, three federal lawmakers are trying to structure a stimulus rebate program in the face of rising gasoline prices.
The plan by Representatives Mike Thompson of California, Lauren Underwood of Illinois and John Larson of Connecticut would offer monthly checks of $100 to single taxpayers and $200 to couples. Families could also request an additional $100 for each dependent reported on their tax return.
“The price of gas is driving up costs across the board. My proposed energy rebate will provide much-needed relief by putting money back into the hands of Americans who are feeling this pressure,” Larson tweeted Wednesday..
“Americans are feeling the impact of Vladimir Putin’s illegal invasion of Ukraine, and right now we must work together on common-sense policy solutions to ease the financial burden my constituents bear,” Thompson said in a statement. a note.
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The income thresholds are similar to those for the third and final stimulus check issued last year: Individual filers making less than $75,000 and couples making $150,000 would qualify for the cash. Singles making more than $80,000 and joint filers making more than $160,000 would not receive help.
Oil prices started to rise about a year ago due to pandemic-related supply chain issues, and pricing issues have been exacerbated by a ban on Russian oil imports in the wake of the war in Ukraine which has resulted in a decline in the world oil supply.
As a result, Americans have been forced to pay some of the highest prices per gallon at the pump. The current national average price of gasoline is now $4.23, more than a dollar higher than the average a year ago, according to AAA.
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For months, lawmakers have mulled over the best way to lower gas prices, but have come up with no solution. Senate Democrats introduced a bill in mid-February to stop collecting federal taxes (18.4 cents per fill) at the gas pump until next year, a proposal that hasn’t gained momentum.
When asked about a gas tax holiday during a March 31 press conference, House Speaker Nancy Pelosi told reporters that a gas tax holiday is no longer the best option on the table, since oil companies they don’t necessarily pass savings on to consumers, plus it would reduce the funds needed to maintain roads.
Pelosi added that lawmakers are now considering a discount card or direct monthly payment, as part of the 2022 Gas Rebate Act introduced March 17.
For now, Democrats are working on potential gasoline discounts, even as President Joe Biden is pushing his own plans after announcing the release of an average of more than 1 million barrels of oil per day from the Strategic Petroleum Reserve over the next six months. , a third of the total reserve.
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Biden has warned that “there is no definitive answer.” She also noted that prices could go as low as 35 cents a gallon, but “you don’t know that at this point.” The president added that it also depends on how many barrels of oil allies around the world release from their reserves.
WHAT ABOUT THE STATE BUDGET?
Americans are more likely to see direct aid from states rather than the federal government. So far, five states, including Connecticut, have introduced tax breaks for their residents, while the Gas Rebate Act of 2022 has been signed by three governors.
Republican Gov. Brian Kemp of Georgia has signed legislation to send checks worth up to $500 to state residents. The reason, he said in a statement, is to mitigate the impact of inflation on household budgets and also to provide direct aid amid a record government budget surplus.
In Maine, Gov. Janet Mills is trying to send $850 checks to every resident to offset inflation, including high gas prices, making one of the most generous deals in the country.
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Separately, Republican Gov. Phil Scott of Vermont has proposed returning half of a $90 million State Education Fund surplus to state taxpayers via $250 and $275 rebate checks, although the Democrat-controlled legislature you seem not to support the measure.
In California, Democratic Gov. Gavin Newsom plans to send direct payments of $400 per vehicle to state residents, with a limit of two vehicles. Now, however, the green light is up to the legislators.
Democratic Gov. Michelle Lujan Grisham of New Mexico signed legislation to provide refund checks of $250 for single taxpayers and $500 for married couples filing jointly.
In addition, Democratic Gov. Tim Walz plans to invest the state’s budget surplus in $1,000-per-couple payback checks.
Indiana residents to receive $125 each after filing taxes in 2022 due to higher-than-expected tax revenues
WHAT ARE THE TRISTATI STATES OF NEW YORK, NEW JERSEY AND CONNECTICUT?
NEW JERSEY
New Jersey Gov. Phil Murphy and the Democrat-led legislature included cash checks of up to $500 for about 1 million households as part of a budget deal last year as the governor and lawmakers prepared for elections.
Now, lawmakers are considering a second plan that would offer $500 checks to immigrants who pay taxes using an Individual Tax Identification Number (ITIN).
According to the state Treasury Department, more than 100,000 immigrants to the state (although state officials estimate that up to 80,000 families would benefit) meet the criteria for one-time payments; however, the use of these funds by the American Rescue Plan must first be approved by the Joint Budget Oversight Committee. Here we explain more.
For now, New York is offering relief to low-income New Yorkers as part of a $64 million federally funded program to help with the cost of diapers for needy families, food expenses for families with children and adults elderly and provide housing and relocation assistance for victims of domestic abuse.
But New Yorkers are still waiting for the state’s fiscal 2023 budget, which could be reconciled as soon as Thursday after a week late.
In her FY 2023 budget plan released earlier this year, Governor Kathy Hochul proposed a $1 billion tax rebate to offset some of the financial burdens New Yorkers face as the economy rises. ‘inflation. . The program returns tax dollars to low- and middle-income families, while low-income families and seniors receive increased benefits. Open here for more details.
CONNECTICUT
The Tax Finance Committee voted Tuesday to not only cut taxes to help families with children, but also agreed to increase the state’s earned income tax credit, which aims specifically to provide a major economic boost to low- and moderate-income workers. The tax benefit would increase to 41.5% starting from the current calendar year 2022.
The committee also agreed to create a child tax credit for the first time in Connecticut, which would provide up to $600 a year for families with up to three children.
The credit would be available to single parents making up to $100,000 a year and married couples making up to $200,000 a year.
For years, Connecticut did not have a state-earned income credit unlike Republicans and several governors, though that changed in 2011 under then-Governor Dannel Malloy. Click here for more detailed information.
