3rd Stimulus

[myrdale]

Stimulus money was to encourage you to loosen up and spend some money.

They sent it to the wrong person. I figured it was a good enough excuse to max the IRA for the year.

[QuarterMillionMan]

California is sending yet another "Middle class refund" starting next month based on 2020 taxes basically $350 for a single who filed less than $75,000 and $350 for each dependent. Enough with the free money already. Last year California sent me $600 for another stimulus which I didn't need as well. This will have serious repercussions later.
New Stimulus Check From California Coming Next Month: Check If You Qualify And How Much You Get – 24/7 Wall St. (247wallst.com)

[Petunia 100]

California is sending yet another "Middle class refund" starting next month based on 2020 taxes basically $350 for a single who filed less than $75,000 and $350 for each dependent. Enough with the free money already. Last year California sent me $600 for another stimulus which I didn't need as well. This will have serious repercussions later.
New Stimulus Check From California Coming Next Month: Check If You Qualify And How Much You Get – 24/7 Wall St. (247wallst.com)

They can't stop. In 1979, California voters passed The Gann Limit. Among other things, it limits the amount of budget surplus which the State may retain. Anything beyond that must be returned to the taxpayers. The "stimulus" payments are packaged to look like the incumbents are giving you something, and they do have some discretion to determine who gets what, but really they are only doing what state law requires.

The Gann Limit is named for Paul Gann. Howard Jarvis and Paul Gann also wrote the infamous Proposition 13.

[ua_guy]

California is sending yet another "Middle class refund" starting next month based on 2020 taxes basically $350 for a single who filed less than $75,000 and $350 for each dependent. Enough with the free money already. Last year California sent me $600 for another stimulus which I didn't need as well. This will have serious repercussions later.
New Stimulus Check From California Coming Next Month: Check If You Qualify And How Much You Get – 24/7 Wall St. (247wallst.com)

The State of California has nearly a $100 Billion budget surplus. I think sending some back to the people who work and make the economy go round is a fine idea.

[QuarterMillionMan]

The money came from the Fed's which should have paid down it's$30 trillion in debt. Instead they dance around playing hocu pocus with the money calling it a rescue plan or inflation reduction, etc. The bill always comes due. Well wake up one day and we'll lose our dollar as the world reserve status if we keep giving money away.

[kork13]

They can't stop. In 1979, California voters passed The Gann Limit. Among other things, it limits the amount of budget surplus which the State may retain. Anything beyond that must be returned to the taxpayers. The "stimulus" payments are packaged to look like the incumbents are giving you something, and they do have some discretion to determine who gets what, but really they are only doing what state law requires.

The Gann Limit is named for Paul Gann. Howard Jarvis and Paul Gann also wrote the infamous Proposition 13.

The State of California has nearly a $100 Billion budget surplus. I think sending some back to the people who work and make the economy go round is a fine idea.

Seems like they should just lower their (exorbitant) taxes so as not to wind up with such a huge surplus. But hey, what do I know... I'll happily avoid the state.

[ua_guy]

The money came from the Fed's which should have paid down it's$30 trillion in debt. Instead they dance around playing hocu pocus with the money calling it a rescue plan or inflation reduction, etc. The bill always comes due. Well wake up one day and we'll lose our dollar as the world reserve status if we keep giving money away.

I’d assume it would be coming from the State of CA. Do you have a source which verifies it will come from Federal funds as you say? I wasn’t able to find anything confirming it was coming from the federal government but I could be wrong about that. I was not a taxpayer in CA for the affected period.

[disneysteve]

Seems like they should just lower their (exorbitant) taxes so as not to wind up with such a huge surplus. But hey, what do I know... I'll happily avoid the state.

And that could be what happens going forward, but that wouldn't address the existing surplus. By giving it back to the people, they are essentially lowering the taxes retroactively. This is exactly what should be happening. I don't get anyone being upset over this. Do people really want the government to keep that money rather than return it?

[QuarterMillionMan]

The big money grab.

Flexible Funding to California in the American Rescue Plan

[QuarterMillionMan]

Prior to COVID California was deep in dodo running a deficit. Now they're sending $350 stimulus and prior $600. I should be jumping for joy. Gee whiz.

[Petunia 100]

Seems like they should just lower their (exorbitant) taxes so as not to wind up with such a huge surplus. But hey, what do I know... I'll happily avoid the state.

Reportedly, the surplus was unplanned.

[ua_guy]

Prior to COVID California was deep in dodo running a deficit. Now they're sending $350 stimulus and prior $600. I should be jumping for joy. Gee whiz.

It looks like California has been breaking even or running a surplus since about 2014. But yes, historically, they have run a defecit along with many other states.

[QuarterMillionMan]

Here's a good analogy. Let's say we are on a boat which has a hole, do you try to plug the hole, or bail water. Some here seems to want to bail water (tossing around free money), rather than get to the cause of the problem and stop spending and plugging the hole. For those wanting to keep bailing water, your boat will surely sink.

[QuarterMillionMan]

Will Durant-"A great civilization is not conquered from without until it has destroyed itself from within." The essential causes of Rome's decline lay in her people, her morals, her class struggle, her failing trade, her bureaucratic despotism, her stifling taxes, her consuming wars." Some here must think America is too big to fail. I hope you are correct.

Will Durant --- Why Rome Fell - YouTube

[myrdale]

The State of California has nearly a $100 Billion budget surplus. I think sending some back to the people who work and make the economy go round is a fine idea.

The money came from the Fed's which should have paid down it's$30 trillion in debt. Instead they dance around playing hocu pocus with the money calling it a rescue plan or inflation reduction, etc. The bill always comes due. Well wake up one day and we'll lose our dollar as the world reserve status if we keep giving money away.

Its my understanding that the states can't just print money. They are forced to run a budget. Any surplus they have is either from extra taxes they collected or from money provided to them by the federal government.

If this surplus is from taxes collected then yeah, I am 100% for sending that money back to the people who paid the taxes in the first place.

If the money was given to the state by the federal government, or if the money is coming directly from the federal government, so long as the money is going to the people who paid the taxes, and they are not getting more than they paid in, I don't have a problem with this either.

That said, if it did come from the government, it would probably be better to simply send it back. I have a fundamental problem when I hear stories of people spending every last dime of the money they were allocated just so they will receive the same amount the next year.