California Gov. Gavin Newsom (D) provided residents with a “Middle Class Tax Refund” right before his reelection last year, ostensibly to fight inflation — but recipients of the checks may have to pay tax to the IRS.
As Breitbart News reported, the so-called “refund” was hatched by Newsom and the Democrats last year:
California will begin sending “inflation relief checks” to residents in October, right before Election Day, as voters are mailing in their ballots, thanks to a plan launched by Gov. Gavin Newsom (D) and agreed to earlier this year by the state’s Democrats.
As Breitbart News reported, Newsom’s plan began as a proposed rebate to help residents afford the high cost of gasoline, which is more expensive in California than in any other state thanks to taxes and regulations (which were not reformed).
Ultimately, the Democrat-dominated state legislature, which had refused to delay a rise in the gas tax, agreed to the “inflation relief checks.” Coincidentally, they will begin arriving as Newsom, who is up for reelection, will face the voters’ verdict.
Some households received checks of up to $1,050 from the state — a transfer that economists pointed out was likely to increase inflation, even while appearing to help, because of increased government spending. Those who received $600 or more were sent a 1099-MISC income tax statement by the state.