In order to battle increasing inflation, these states plan to send residents money in the form of tax rebates and stimulus checks of up to $850 per.

In response to decades-high inflation, states are taking a number of steps, including distributing fuel debit cards and instituting tax credits, to help the poor.

Consumers across the country are feeling the effects of rising inflation. The cost of gas is particularly high for consumers, with a national average of nearly $4.20 per gallon.



State governments in at least a dozen states, run by both Democrats and Republicans, have taken steps to reduce the impact of inflation on their citizens, despite a lack of federal subsidies to do so. Many of the changes are part of state budget recommendations, therefore they won’t be implemented for some months.

A look at some of the state stimulus programs that have taken place so far.


Residents of California have been offered a variety of stimulation initiatives. Proposals announced by California Governor Gavin Newsom, a Democrat, include $400 direct payments to California automobile owners via debit card, free public transit for three months, and a reduction in the state’s tax on gasoline.


One-time tax credits for 2020 and 2021 have been announced by Georgia Governor Brian Kemp, a Republican. Refunds of $250 for single filers, $375 for heads of household, and $500 for married couples filing jointly will be automatically credited by the Georgia Department of Revenue once taxpayers file their 2021 taxes.


David Ige, the Democratic governor of Hawaii, proposed in his state-of-the-state address in January that each taxpayer and their dependents get $100. (s). When Fortune reached out to Ige’s press secretary, he did not immediately answer to our inquiry about the status of the rebate.


Governor Brad Little signed a bill in February that would provide tax reimbursements totaling $75 for each taxpayer and each dependent, or 12 percent of their 2020 tax bill if it was the greater number of rebates. Residents of the state for 2020 and 2021 and those who have submitted tax returns for both years must be eligible.

Taxpayers in Indiana will each earn $125 when they submit their 2021 returns. People who generally don’t have to submit a tax return because of their low income are now eligible for the rebate.

Governor Janet Mills recommended a direct payment of $850 to every Maine resident. Even though the bill enjoys broad bipartisan support, state legislators must still approve it before it becomes law, according to local media reports. Payouts might begin in June of 2022, according to the state.

For single taxpayers and married couples filing jointly, the one-time $250 refund of federal income taxes and the $500 one-time refund of federal income taxes were both signed into law by Democratic Governor Michelle Lujan Grisham of New Mexico earlier this month.

No-fee days for gas

To combat rising gas prices, Connecticut, Georgia, and Maryland have all lowered their state gasoline taxes for a limited time. Each state has its own set of regulations. California, New Jersey, New York, and Ohio are among the other states proposing a gas tax holiday.

According to the American Petroleum Institute, the average state gas tax and the levy are roughly $0.39.

The suspension of the federal gas tax has also been proposed by several members of Congress. Despite this, MPs from both parties are opposed to the idea, arguing that it would provide little assistance to the general public.

Tax reductions for the state

Several states, including Colorado, Georgia, and South Carolina, have suggested lowering state income tax rates in response to budget surpluses.

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