Since the pandemic began wreaking havoc on the economy, there has been no return to normalcy despite the multiple rounds of federal stimulus checks that have been distributed. People continue to suffer as a result.
It has been more than two years since the lockdown was proclaimed, during which time individuals have gotten support from the federal government at each point, beginning immediately after the nation went into lockdown.
On the other hand, the beginning of the new year witnessed the complete cessation of all types of stimulation checks.
The Republicans stopped the fourth round from happening because they began to blame the third round of stimulus checks for the creeping inflation rate, which began its steady rise in the second quarter of 2021.
This caused the Republicans to blame the third round of stimulus checks for the creeping inflation rate.
Even the prolonged payments for those who were unemployed and the expanded checks for the child tax credit stimulus programme were discontinued.
But inflation has continued to climb and hit record levels in the second quarter of 2022, reaching 9.1% year-on-year in June 2022, which was the highest level since November 1981.
This was the highest level since inflation began tracking in November 1981. Even if it has dropped to roughly 8.5% in July, it is still significantly higher than the average level of sub-2% that is considered to be normal for the American economy.
Recognizing the dire situation their constituents are in, states immediately begin issuing stimulus checks.
Approximately twenty states have taken action to help fill the void left by the federal government’s withdrawal from the stimulus package.
However, the assistance that is being provided is not even close to reaching the level that the federal government was able to muster given the resources that it possesses.
However, two things that have gone in the states’ favour have helped them out a great deal. The second two quarters of 2021 were a time of prosperity for the economy, and as a result, the majority of states accumulated a solid budget surplus.
For example, the state of California has amassed a budget reserve of over $97 billion, which is more than the majority of the leading economies in the world.
A little less than half of the states have brought in as much money, if not more than they did in the year leading up to the epidemic, in the most recent 12 months that they have managed to manage.
These states, which are consistently running budget surpluses, are alleviating residents’ financial strains by lowering tax rates and making cash payments to them.
Stimulus Check Stimulus Check
In addition, the states have received assistance in the form of cash under the American Rescue Plan Act, which was signed by Vice President Joe Biden as soon as he took office as President of the United States of America.
On March 11, 2021, the ARPA was signed, and within a week of that date, the third stimulus check, also known as the economic effect payments, was initiated.
The majority of states either plan to use this additional money in their budgets or are already doing so to either distribute stimulus cheques, grant tax rebates or provide relief to their inhabitants in other forms, such as providing gas and transportation cards.
This stands in stark contrast to the circumstances that prevailed a year ago when shutdowns caused state leaders to worry that they would soon be unable to secure sufficient funding.
A Temporary Economic Boom Assisted States in Steadily Increasing Their Revenues
ARPA consisted of more than just the stimulus checks alone. Businesses, municipal and state entities, organisations including medical and educational institutions, and state governments all received monetary assistance as a result of this measure. The majority of states are currently hoarding these public funds rather than putting them to good use.
The states have significantly more than they anticipated, but they had been anticipating having a deficit instead.
During the pandemic, some states, such as Nevada and Hawaii, which rely heavily on tourism, and some states, such as Alaska, Hawaii, and Texas, which rely heavily on their natural resources, have taken a hit. However, other states have reported a healthy surplus of their resources.
People who struggled during the pandemic and continue to suffer as a result of inflation draining their resources and leaving them in the same situation they were in immediately after the pandemic’s onset have been assisted by these states, which have stepped in to provide assistance to those people.
To provide residents with stimulus checks, the states of California and Florida have stepped in.
The number of states that have passed legislation on the topic of inflation relief stimulus checks or are in the process of doing so has crossed the threshold of 20.
California and Florida are among the most recent states to join the group of states that have taken this step. Alaska is one of the several states that has moved forward with checks related to the stimulus package.
Residents of Alaska will each get a cash payment of $5,500 as part of the state’s economic stimulus package, which was adopted by the state Senate with a vote of 15-5 in favour of legislation.
Starting in the fourth quarter of this year, citizens of Colorado who are qualified to receive the Colorado Cash Back Bill’s benefits will be able to receive a $750 stimulus check for individuals and $1,500 for joint filers.
Taxpayers filing jointly in California who have joint incomes of $150,000 or less and who have at least one dependent can qualify for a stimulus check worth up to $1,050.
Families whose annual incomes are reported to be $250,000 or more will also receive a stimulus payment, but one of a lesser amount.
Residents who qualify will receive a one-time cheque for $300 as a form of economic stimulus from the state of Delaware.
Families with children in Florida are eligible to receive a one-time cheque for $450 from the state. However, eligibility is limited to families who participate in assistance programmes, have foster parents or caregivers in their midst, or both.
Taxpayers in Georgia who qualify for the stimulus check will receive $250 if they file their taxes as individuals, and $500 if they submit their taxes as a married couple.
Residents of Hawaii who meet the requirements will get $300 if their annual income is less than $100,000, and $100 if it is more than $100,000.
Residents of Idaho who meet the requirements can anticipate receiving a tax rebate that is larger than 12% of their state tax or $75, whichever is lower.
Residents of Illinois are benefiting from a reduction in the overall sales tax rate which ranges from 1.25 per cent to 6.25 per cent, as well as from a reduction in the grocery sales tax which is one per cent. They will also be eligible for income tax reimbursements ranging from $50 to $100, depending on the status of their tax returns.
Residents in the state of India who qualify for the check will get $125. The state of Maine is one of those that is providing its inhabitants with the largest stimulus check possible.
Residents who meet the requirements will receive $1,650 if they file their taxes separately, or $2,400 if they file their taxes as a married couple filing jointly.
Taxpayers who are eligible in New Mexico will receive a rebate that will be paid out over three months and could be worth up to $1,000. In contrast, taxpayers in New Jersey will receive a payment of $500 as part of the state’s tax rebate programme.
Oregon is providing one-time help that is valued at approximately $600 per recipient, whereas South Carolina is providing a tax rebate of $800 per recipient. This fall, residents of Virginia may receive a bonus of up to $500.
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The surplus money is also being used by many states to improve their infrastructure, including water and sewer projects as well as broadband internet access in homes and businesses.
During the epidemic, a significant number of public workers—roughly 1.2 million—lost their jobs, and this will make it possible for states to restore roles and services that were eliminated. This will result in a significant amount of hiring across all industries.