Multiple states will soon be sending out stimulus checks and other financial relief, a decision that some believe will make the 40-year-high inflation even worse.
In California, individuals will get up to $1,050 between October 2022 and January 2023 as inflation relief checks based on their tax filing status and income.
In Georgia, taxpayers can get anywhere from $250 to $500, according to a refund law signed into law in March. The payments were due to be issued in early August. In Florida, around 59,000 families will receive a one-time payment of $450.
Maine will hand out $850 per single tax filer and $1,700 per couple. In Massachusetts, the local government plans to refund 7 percent of the 2021 taxes paid by citizens. Virginia residents can claim anywhere between $250 and $500 as tax rebates. Oregon has approved $600 in one-time assistance checks to low-income residents.
In South Carolina, taxpayers can get up to $800 in income tax rebates. In Delaware, each adult was scheduled to receive $300 as a one-time payment under the Delaware Relief Rebate Program signed in May.
Worsening InflationThese state-level stimulus checks and tax refunds come after the federal government pumped in billions of dollars in the form of COVID-19 relief assistance in the past years. According to Christina Herrin from the nonprofit Citizens Against Government Waste (CAGW), stimulus checks by states are a “fruitless attempt to combat inflation.”
“A one-time payment for ‘inflation relief’ is far different than tax rebates that many states are providing to all taxpayers based on income. They are feel-good band-aids that will make everything more expensive and keep inflation going longer than it would otherwise,” Herrin wrote.
When Biden became president in January 2021, the 12-month Consumer Price Index (CPI), a measure of inflation, was only at 1.4 percent. By May 2021, it had reached 5 percent.
In January 2022, CPI was running at 7.5 percent. It then peaked at 9.1 percent in June, and was at 8.5 percent in July. Inflation has not dropped below 7 percent in any single month this year so far.