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SAN DIEGO – Some San Diegans battling high inflation may see some relief as soon as Friday. This comes as the first batch of the Middle-Class Tax Refund payments will go out in a matter of days.
After months of soaring housing prices, shelf shock down grocery aisles and rising costs at the pump, shoppers like San Diegan Kraig Cavanaugh will get more money added to his pockets.
“If I can comprehend how much I’m going to get it’s going to be about $300 as a single taxpayer. So I’ll probably save it,” Cavanaugh said.
It’s all part of a plan made by state legislators to send direct payments to penny-pinching Americans as they deal with 40-year high inflation.
Alan Gin, economics professor with the University of San Diego, suggests although the year-over-year inflation rate now sits at 8.3%, the added relief will have little to no impact on the national and state economy.
“I think it will help individual people, but I don’t think the aggregate amount involved is going to be enough to negatively impact the state of California,” Gin said.
Qualifiers like Cavanaugh tell FOX 5 they still worry this may hurt the taxpayer in the long run.
“If you put money into a system, it seems to be logical that it would potentially be inflationary,” Cavanaugh said.
According to information from the Franchise Tax Board, pending payments are tiered by how much taxpayers make, and what they file under. Individual tax filers earning less than $75,000 will receive a larger check reaching up to $350 without a dependent and $700 if one files with at least one.
As for couples making up to $500,000, they can get at least a partial payment, sitting at $400 without a dependent and $600 with at least one. Couples who make $150,000 or less can earn $700 without a dependent and $1,050 with one. Essentially, the less you make, the more you earn.
“It’s not going to do anything in terms of lowering prices but it’s to help consumers then cope”
Dr. Alan Gin, Economics Professor at the University of San Deigo
This relief will come shortly after OPEC’s announcement, cutting oil and gas production by two billion barrels a day, only adding to the already sky-high gas prices seen throughout the state.
“That’s a huge drop in terms of production and the worry there is that’s going to cost world oil prices to rise,” Gin said.
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