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Proposal gives $600 payment to help Calif. low-wage earners

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SACRAMENTO — Gov. Gavin Newsom  announced a major effort to increase assistance to low-wage Californians suffering economically from the impact of the pandemic.

The Golden State Stimulus proposal, which was included in the governor’s budget proposal released Jan. 8, uses the California Earned Income Tax Credit (CAL-EITC) program to send $600 to workers earning less than $30,000 per year.  The stimulus is in addition to the federal $600 sent to taxpayers.

“We are grateful to the Governor and his staff for recognizing the importance of CalEITC for our children and families,” said Ned Dolejsi, interim executive director of the California Catholic Conference. “Both the federal and the California Earned Income Tax Credit have lifted hundreds of thousands of working families out of poverty.”

The EITC dates back to the administration of President Ronald Reagan and has been a continuous bi-partisan tool for helping workers whose wages still keep them near the poverty line.  California expanded the program last year to include undocumented workers who pay income taxes.  The California Catholic Conference has consistently advocated for needed expansion of the tax credit.

“We look forward to working with the governor and his staff to help make the Golden State a more inclusive, prosperous and thriving California for all,” said Dolejsi.

The governor also is asking lawmakers to extend a moratorium on evictions, though did not provide details.

State lawmakers usually pass the budget in June, but the governor is asking them to act quickly on these proposals to help the state’s low-income residents struggling to make ends meet because of the pandemic. He hoped that that the $600 payments could go out as early as February or March.

The 3.9 million people who filed for the CalEITC last year would receive the $600 payment if the proposal is approved. People who file their taxes using Individual Taxpayer Identification Numbers, about 125,000 last year, and who would be eligible for the tax credit this year also would receive the payment. These individuals are generally undocumented immigrants.

See additional resources to help struggling families here.

This information came from the California Catholic Conference and syndicated news services.

 

 

 

 

 

 

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