Is Your State Sending You an Inflation Relief Check?

Number of the Day: The most relevant or interesting figure in personal finance

NOTD - 16

That’s how many state governments have sent out, approved, or are considering payments to residents to help them cope with the rapidly rising cost of living.

The relief measures range from a $75-per-person tax rebate in Idaho to direct payments of up to $1,050 per household authorized this week by California governor Gavin Newsom. Officials in several states have proposed measures that have yet to pass, such as in Pennsylvania, where Governor Tom Wolf has called for giving households up to $2,000. Many of the plans impose income limits on the payments.

The direct payments are to help people cope with soaring prices for groceries, gasoline, and other necessities amid the highest inflation in more than 40 years. While any relief is welcome news for shoppers, critics say putting more money in consumers’ pockets will only make inflation worse by contributing to an imbalance between supply and demand. Some say that’s exactly what happened when the federal government sent out federal stimulus payments during the pandemic, flooding the economy with cash and stoking today’s inflation.

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  1. Office of Governor Gavin Newsom. “Governor Newsom, Senate President pro Tempore Atkins and Assembly Speaker Rendon Announce Budget Agreement.”

  2.  Idaho State Tax Commission. “2022 Tax Rebate: Frequently Asked Questions.”

  3. Governor Tom Wolf. “Wolf Administration Continues Push for $2,000 Direct Payments to Pennsylvanians as Prices Soar.”

  4. Tax Foundation. “Oklahoma Should Prioritize Pro-Growth Relief, Not Gimmicky Rebate Checks.”

  5. Americans for Prosperity. “Here's what's causing historic inflation.”

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