Monday, California Gov. Gavin Newsom rolled out his “California Comeback Plan” calling it the “largest economic recovery package in state history.”
California Gov. Gavin Newsom announced Monday a new “stimulus” plan to provide checks for 2/3rds of all Californians, as well as rental assistance, and other direct cash forms of economic relief, the Globe reported Monday.
Newsom says the state has a $76 billion budget surplus, allowing him to offer “stimulus checks,” then changed it to “tax rebates” of $600 to $1,100 for millions of Californians making less than $75,000 annually. But these checks can’t be tax “rebate” checks since they are going to people who don’t pay taxes at all, and to undocumented immigrants newly in the state.
“Look out –CA is coming ROARING back from this pandemic. First thing we’re doing is putting $ back into the pockets of Californians–with the largest state tax rebate in American history. $600+ checks to the middle-class & even more $$$ if you have kids,” the Governor Tweeted.
Look out –CA is coming ROARING back from this pandemic.
First thing we're doing is putting $ back into the pockets of Californians–with the largest state tax rebate in American history.
$600+ checks to the middle-class & even more $$$ if you have kids.https://t.co/b313QIYgtH
— Gavin Newsom (@GavinNewsom) May 11, 2021
Newsom’s use of the word “Roaring” sounds awfully similar to Republican Gubernatorial candidate John Cox’s “Meet the Beast Bus Tour” as it “Roars on in” to cities across California.
And Newsom’s “California Comeback Plan” was surely taken right from Republican Gubernatorial Candidate Kevin Faulconer‘s: “It’s Time for the California Comeback.”
As the Globe has noted, other states are already “roaring back” because they reopened, dropped mask and social distancing mandates, and opened all businesses and schools. If California had not been under Gov. Newsom’s statewide lockdown orders more than 435 days since March of last year, millions of small businesses would not have been forced to close, unemployment wouldn’t be so high, and any “stimulus” would be in the form of healthy commerce, as it was prior to the lockdowns. On Gov. Newsom’s orders millions of Californians are really hurting.
In addition, $5.2 billion of the proposed $100 billion would go to doubling rental assistance to complete 100% of back rent paid for those who fell behind in payments, and $2 billion to go toward water, gas, and electric utility bills for those needing assistance, the Globe reported.
As one economist explained to the Globe, the state is awash in surplus funds because the Biden Administration sent $25 to $30 billion to California, on top of wealthy Silicon Valley tech businesses doing very well during the lockdown. “But how much of that $75 billion surplus is federal funds from the Democrats in DC turning the spigot on?” the economist asked.
In March, the Associated Press reported that “the massive COVID-19 relief bill Congress approved” will pump more than $150 billion into California’s economy.” Do we really know just how much federal money California has received?
It appears Gov. Newsom is playing offense, facing a recall election later this year.
Some lawmakers say the governor is buying votes ahead of the recall. “As the shiniest object in his ‘recovery’ package, Newsom is dangling $600 checks. Politico’s headline summed it up: ‘Newsom wants to hand out cash before California recall election,’” Assemblyman Kevin Kiley said. “It’s the classic playbook of corrupt regimes: massively overtax people, squander the proceeds through graft, and return small sums as a ‘gift’ at opportune times. Even Gray Davis’ top operative says Newsom is ‘playing Santa Clause.’”
🚨$$$ back in your pocket🚨:
Two out of every 3 Californians will receive a check of at least $600 — and families with kids will receive another $500. https://t.co/A8ao3ksPDB
— Gavin Newsom (@GavinNewsom) May 11, 2021
California is still facing big problems on top of the lockdown damage: $31 Billion in EDD fraud and months of unemployment benefit checks in arrears, $1 trillion unfunded public employee pension and health debt, $10 billion borrowed from the federal government for California unemployment benefits, and as former Sen. John Moorlach just reported at the Globe, most of the state’s 944 public school districts are drowning in debt, with some on the verge of insolvency.
There are still 200,000+ drug-addicted homeless living in squalor on California streets, and the number only seems to grow as politicians increase public spending on the “unhoused,” ignoring that they are also “unsober,” and “unlawful.”
California GOP Chairwoman Jessica Patterson lays out the state’s problems amid Newsom’s maneuver: “While it’s nice to see Newsom acknowledge that people are struggling under his incompetence, a one-time payment does not make a permanent recovery. California will still have the highest poverty level, highest amount of homelessness, highest taxes, near the highest cost of living, near the highest unemployment rate and highest number of residents fleeing to more welcoming and affordable states.”
But, ‘we have money’
“Because of California’s very progressive tax structure, and because most of our revenue comes from the wealthiest, we have money,” Senator Nancy Skinner (D-Berkeley) said on Monday. “Now, unlike other states, we are using that money to support the many Californians who’ve been hurt during this pandemic. We are in the position now to be able to provide more.”
The state giveth and the state taketh away?
A “comeback plan” and a handout would be rendered unnecessary if the state was reopened fully and business owners and employees were able to get back to work.
Massively overtax people, squander the proceeds through graft, and return small sums as a “gift” at opportune times. It’s the playbook of corrupt regimes.
— Kevin Kiley (@KevinKileyCA) May 10, 2021
Assemblyman Kiley added: “But what kind of a ‘recovery’ does Newsom have in mind, anyway? He forecasts 8.5 percent unemployment for this entire year and says jobs in California won’t return to pre-COVID levels until 2025. That’s apparently his definition of ‘roaring back.’”
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