Must-Know Catalyst Updates for Spring 2022
The coronavirus pandemic has brought unprecedented incentives to American companies and workers worth trillions of dollars. The stimulus payments came in waves, and as the pandemic dragged on, it looked as if the government would keep printing money forever to save the economy. But even with continued restrictions on mask use and travel restrictions, the US economy enjoyed a sharp and rapid recovery. Combined with the trillions of dollars in stimulus money in the system, inflation exploded in early 2022 to levels not seen in decades. What does this mean for the additional stimulus payments in the spring of 2022?
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Federal stimulus may be over
From March 2020 to February 2022, the US government injected nearly $5 trillion in stimulus money into the economy. Of that, nearly $1.8 trillion went directly to individuals and families, while another $1.7 trillion went to businesses. But the federal government’s appetite for more direct incentives is waning. The Biden administration appears to be focusing primarily on infrastructure spending, while many economists warn that additional stimulus will only accelerate the rise in inflation, which reached a staggering 8.5% in March 2022. Until this trend reverses, it is likely That federal stimulus pauses, if not ends. completely.
But there is always a glimmer of hope
Although pockets of the economy are booming, the unemployment rate is still higher than it was before the pandemic, and other improvements, such as the child tax credit, have expired. The bottom line is that many Americans still struggle. Against this background, several proposals for additional stimulus have been pushed, from a fourth stimulus check to recurring monthly payments of $2,000. If the economy is to deteriorate again, or if another type of coronavirus starts to increase hospital admissions and deaths again, the drums for additional stimulus may sound louder.
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Government stimulus packages are alive and well
Although the federal government appears to be out of stimulus at the moment, many states have grabbed the ball and are working with their stimulus proposals. While not everything will be approved, here’s what some states are working on to get more help for their residents.
California has recorded a surplus for the past two years, and residents have benefited. In 2021 and early 2022, the state sent two rounds of direct stimulus checks to residents, and in 2022, Governor Gavin Newsom proposed sending $400 discount cards to help offset the rising cost of gas. Residents will receive one card for each car owned, up to a maximum of two — or $800 — per household, with payments due early in July.
Illinois Democrats are suggesting stimulus checks reach residents’ mailboxes by September, up to $100 per person and $50 per child in each household. The proposal would also provide up to $300 in property tax credit checks, a six-month suspension of grocery and gas tax increases and a 10-day school supplies tax freeze in August.
Idaho residents will get checks with a deduction or direct deposit over 12% of their 2020 taxes or $75.
Maine Governor Janet Mills suggested sending $850 stimulus checks to state residents. The money will come from the state’s $682 million surplus.
New Mexico residents who file joint returns and have an income of less than $150,000 will receive a one-time tax deduction of $500. Single file owners with an income of less than $75,000 are eligible for the $250 discount. Other credits include $1,000 for full-time hospital nurses, a refundable child tax credit of up to $175 per child, a partial three-year income tax exemption for military retirees, and an extension to the Solar Market Tax Credit, equivalent to 10% of eligible purchase and installation costs.
Indiana lawmakers have agreed to expand the state’s $125 stimulus payments to residents to make about 450,000 low-income residents eligible as well.
Governor Brian Kemp recently signed stimulus payments to Georgia residents into law. These one-time refunds will be $250 for individual taxpayers (or apply for spouses separately), $375 for heads of household and $500 for subscribers.
New Jersey Governor Phil Murphy has proposed sending $500 stimulus checks to low-income taxpayers who filed using a tax identification number instead of a Social Security number, in an effort to include undocumented immigrants.
Virginia lawmakers are searching for details of a potential $300 stimulus check for all Virginia taxpayers. Two other proposed bills look to reduce or eliminate the state’s grocery tax and suspend the state’s 26.2-cent gas tax for one year.
New York Governor Cathy Hochhol has proposed a property tax deduction of about $425 to $970 for low- and middle-income families in the state. In addition to other measures, including the corporate tax exemption, the state is also implementing a suspension of the state tax on motor fuels until December.
In January, Governor David Ige proposed a $100 refund for all taxpayers and dependents. In April, the Hawaii House of Representatives committee upped the ante, approving $300 checks for taxpayers who earn less than $100,000, or $100 for those earning more than that.
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This article originally appeared on GOBankingRates.com: Must-Know Stimulus Updates for Spring 2022