California is considering another round of stimulus checks as the state is expecting a budget surplus. Republican State Senator Brian Jones says that the surplus gives California an excellent chance for tax rebates. The budget surplus is estimated to be $45.7 billion dollars.
Jones posted a video to his social media explaining the budget surplus and his idea for a tax rebate. Jones used grains of rice to explain, “If each grain of rice is $100,000, that means California’s $45 billion surplus is taxes over-collected by this much,” showing a massive pile of rice laid out on a tarp. According to Jones, that amount of money is enough to send a tax rebate of $1,125 to every California citizens, or $4,500 to a family of four. California is considering more stimulus checks as the surplus is expected to go over the state constitutional limit set by voter-approved Proposition 4, or the “Gann Limit”. The Gann Limit restricts the amount of tax revenue the state is allowed to spend while giving lawmakers options as what to do with the remaining funds. California has only passed the limit twice since its adoption in 1979, once in 1987 and last year.
Jones supports rebates saying they benefit every family, “Any amount that we can convince the state, the governor, the Democrats in the Legislature to send back, I think is a benefit to every Californian and every California family”. Governor Newsom’s original budget proposal did not include rebates, but says that rebates could be added, “We expect in the May revise language when I update the budget that we are likely to have an additional rebate to the taxpayers” , said Newsom.
The fiscal year will begin on July 1st, with a deadline for the budget being June 15th. The state has about four months to decide what to do with the surplus.
Photo Cred: AP Photo/Rich Pedroncelli