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Stateline: Your Check's in the Mail: States Give Tax Refunds to Cushion Inflation

Source: Stateline

This month, Colorado taxpayers began receiving refunds from the state government. Joint filers got $1,500, and single filers got $750. Enclosed was a letter from Democratic Gov. Jared Polis, who noted that the checks — required under the state constitution — were being mailed ahead of schedule, due to a law passed this session, to help people cope with rising prices.

“At a time when inflation is causing increases in the cost of everyday items, we are committed to getting this money to you as quickly as possible,” Polis wrote.

Taxpayers in over a dozen states are getting refunds this year, as both Republican and Democratic state leaders seek to spend down budget surpluses and help residents cope with inflation. 

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Lawmakers say they’re not too worried about tax refunds contributing to inflation. The $9.5 billion California lawmakers are spending on refunds this year will help families put food on the table, said Democratic state Rep. Phil Ting, chair of the Assembly Budget Committee. 

“While $9 billion is a lot of money to those individual families,” he said, “it’s not really enough money to make an impact on California’s $3.4 trillion economy.”