Critics say Gavin Newsom’s tax rebate will worsen inflation

Rising inflation has left many Americans struggling to pay their bills, something that has led California Gov. Gavin Newsom to announce a new tax rebate.

Yet rather than provide relief, Daily Caller contributor Carrie Sheffield argued in a piece this week that rather than providing relief, Newsom’s move will only worsen their plight.  

Households can qualify for up to $1,050

In a tweet he put up this past Tuesday, the governor touted his plan to begin sending state residents four-figure checks.

“Millions of Californians will be receiving up to $1,050 as part of a NEW middle-class tax rebate,” he declared, adding, “That’s more money in your pocket to help you fill your gas tank and put food on the table.”

According to Fox 5 San Diego, the exact amount that recipients can expect will depend on their income and household size.

Single filers making under $75,000 annually will receive a check for $350. That figure drops to $250 for those earning between $75,000 and $125,000 while individuals who make from $125,001 and $250,000 are on track to get $200.

Meanwhile, taxpayers who file jointly and make up to $150,000 will receive a $700 payment. Joint filers who earn between $150,001 and $250,000 will have a $500 check coming, a figure which will be reduced to $200 for those making between $250,001 and $500,000.

However, single filers who make more than $250,000 and joint files who earn over $500,000 are excluded from the plan. Additional payments are available for those with dependents, leading to a maximum household payment of $1,050.

Studies suggest that COVID spending exacerbated inflation

While residents may welcome the extra cash, Sheffield pointed to research suggesting that the infusion of COVID stimulus money was likely a major cause of the inflation they are faced with.

“In reality, this flash-in-the-pan gimmick will make inflation worse,” she explained, noting, “Right now, we have a supply problem.”

“We don’t have a demand problem. Putting more inflationary cash into consumers’ pockets will only drive demand higher.”

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