Democratic California Gov. Gavin Newsom and Democratic legislative leaders agreed on a $17 billion relief package that includes $9.5 billion in inflation relief funds. Those estimated 23 million California taxpayers will receive between $200 and $1,050 by early next year.
California has more flexibility to send these kinds of payments because its budget is one of the largest in dollar terms and they have the biggest surplus on record of any state, said Dylan Grundman O’Neill, senior state policy analyst at the Institute on Taxation and Economic Policy.
“They have a highly progressive tax code that is bringing in a lot of revenue from the profitable corporations and wealthy individuals that are doing the best in this economy right now,” O’Neill said.