California collected loads of tax revenue from high earners, which is bringing the state to an unexpected $75.7 billion state budget surplus. On top of the surplus, California state government is getting $26 billion from President Joe Biden’s American Rescue Plan Act – a federal coronavirus aid bill signed into law in March.
Yes, the Golden State is getting rich from federal taxpayers across the country. Consider this:
When U.S. House Democrats, led by House Speaker Nancy Pelosi, changed the state bailout allocation from population to unemployment rate in the Rescue Plan, California picked up an additional $6.6 billion. Big losers were states like Georgia (-$1.5 million) and West Virginia (-$900 million) – their federal tax dollars were sent to California (and New York, plus $6 billion!).
So, what is California Gov. Gavin Newsom going to do with the largess? Dole out $8.1 billion to residents in the form of “stimulus checks.” more