More than a dozen states have recommended sending stimulus checks to their residents to offset the highest inflation in over 4 decades or have already pushed through legislation. Lawmakers on either side of the aisle have pointed to the high prices of food, gas, and other essentials that have prompted them to send these tax rebate checks.
Gasoline prices were previously escalating even before the war in Europe as inflation led to historically high prices. Even though the US does not import Russian energy in a major way, it has banned all trade with Russia and that is hitting the economy further.
President Biden has laid out his plans to counter the bearing of the acute shortage by releasing a million barrels of gas from the strategic reserves of the US.
And American states are doing their bit by passing legislation aimed at direct stimulus checks instead to tax cuts. While states such as Maryland, Connecticut, and Georgia have gone for fuel tax cutbacks, New Mexico. Other states have taken measures aimed at encouraging residents to use public transport systems and have cut up to 75% in rates.
Individual Stimulus Checks To Counter Fuel Price Rise
Connecticut, Maryland, and Georgia have completely done away with a gasoline tax to compensate for increasing fuel prices. Officials hope to provide respite to consumers facing a rise in prices on multiple fronts due to high domestic inflation, the war in Europe, and other factors causing instability in the market.
Idaho will give a direct stimulus check of $75 or 12% of the tax paid by residents in 2020, whichever is higher. Indiana’s Governor Eric Holcomb has proposed eliminating the minimum income requirement and has expanded access to a stimulus check of $125 to over 400,000 state residents.
Single tax filers in New Mexico will get a $500 stimulus check. Joint filers will get double that amount. No action is required to claim this stimulus check.
California has proposed sending a $400 stimulus check for each car with families eligible for payment for a maximum of 2 cars. Hawaii plans to inject $110M back into the state economy by sending a refund stimulus check of $100 to every taxpayer.
