Handing out money won't help much

Friday, May 14, 2021
 | 
Chris Woodward (OneNewsNow.com)

stethoscope and cashA spokesman for a public policy research organization says Governor Gavin Newsom's plan to give households tax rebates as part of what the Democrat calls the state's response to the coronavirus pandemic will not sustain anyone for long.

"It's certainly never ideal policy for the government to just give direct payments, but the government has shut down a lot of people's livelihoods for a long time," says Steven Greenhut, a Sacramento resident and western region director for the R Street Institute. "I think the governor should use the money to reduce taxes permanently and fix our tax code, which keeps driving people out."

Greenhut

Millions of Californians would get tax rebates of up to $1,100 under the plan Gov. Gavin Newsom announced this week. For example, individuals and households making between $30,000 and $75,000 annually would get a $600 payment. All households making up to $75,000 with at least one child, including immigrants who file taxes, would get an extra $500 payment.

"Giving $600 one time to people isn't going to sustain them very long," says Greenhut. "He's still holding back on some of the full reopening, so we need to reopen the economy, cut taxes, and help jumpstart the economy. That's what we really need to do."

The payments, which must be approved by the legislature, are part of what Newsom calls a $100 billion plan to drive the state's economic recovery. The plan comes as Newsom faces a recall election.

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