California Governor Gavin Newsom – while the Federal Reserve tries to stem inflation – has come up with an idea to further plunge his state into further debt and by extension the whole country after the plan falls flat on its face – to hand out more stimulus checks to California residents.
“Millions of Californians will be receiving up to $1,050 as part of a NEW middle-class tax rebate.
“That’s more money in your pocket to help you fill your gas tank and put food on the table,” Newsom tweeted Sunday night.
Dubbed the “inflation relief package,” the package comes with a cost of around $17 billion and income determines how much someone might receive in payment.
Bloomberg Law reported the details on how the stimulus scheme works for households:
Individuals making as much as $75,000 a year, or joint filers making up to $150,000, would get $350 each plus $350 for one dependent for a maximum of $1,050. Those with income up to $125,000, or $250,000 filing jointly, would get $250 each plus another $250 for one dependent for a maximum of $750. Those earning more than $250,000, or $500,000 filing jointly, would get $200 each plus $200 for one dependent for a maximum of $600.
The plan to further spend billions in taxpayer money, will not curb inflation but make it instantly worse and works against what the Federal Reserve is trying to achieve by hiking interest rates and curbing spending to reduce aggregate demand, which will cause consumer prices to fall.
California is also one of the most heavily taxed states in the country and over the past few years, Californians have been leaving in droves due to living costs being so high, even some working in medical professions had to settle for living in their car because rent was impossible to pay.
California Democrats can expect their policies to increase inflation even further and they will be unable to blame the “Putin price hike” forever.
The Editorial board of the Wall Street Journal concluded:
“Too bad this bribe, er, incentive to vote Democratic won’t offset the state’s fast-rising cost of living, high taxes or the premium Californians pay for energy, water and housing, among other things, due to progressive policies.”
Maybe Newsom is hoping that his selling of California as an abortion haven may bring in abortion-holiday money into his state, after he announced on Twitter that California and his west coast neighbor states Oregon and Washington will continue to provide abortions to would-be mothers, despite the Supreme Court overturning Roe v. Wade 1970.
Newsom is also looking to maybe get a nod towards a run for the highest office in the land – but by the way he has system/atically run California into the ground, let us hope that that never happens.
