California Cash Rebates Are Going Out to Mask Energy Costs

California objectively has some of the worst gas costs in the nation. While the national average cost of gas is $4.90, California is bogged down with an average of $6.32.

Several weeks ago, the California state legislature was presented with a bill to temporarily remove the state’s gas tax. However, Democrats, who dominate the state’s House and Senate, refused to back this bill.

In fact, they put through new legislation that would increase taxes on oil and gas companies. Naturally, this will trickle down to consumers.

Nevertheless, with sky-high gas costs in California, the state has now agreed on handing out cash rebates to help people afford their runs to the gas stations.

What to Know About California Cash Rebates
The rebate plans are simply watered down, state-level versions of the national stimulus checks that were handed out during coronavirus shutdowns.

Single parents in California will get $700 from the state government to help them afford rising gas costs. Meanwhile, families with two parents in the household will receive $1,050.

Both payments are conditional on the families or individuals bringing in no more than $75,000 individually or $150,000 jointly.

Higher earners in California, both individuals and families, are subject to lower cash rebates. The number of dependents that adult residents have in the state also plays a pivotal role in how much money they can expect from California.

The new cash rebates are far from the first time that Newsom’s had these sorts of handouts sent to state residents. Yet, today’s issues with gas prices and California’s greater economy demonstrate the state’s previous handouts weren’t the end all be all.

Why Are California’s Gas Costs So High?
With California having gas prices that are higher on average than nationwide, many Americans have questions about what’s driving this.

The ultimate factors pushing these high costs are state taxes, intense regulations, local production limits, and refinery power restrictions.

Despite the damaging impacts these policies are having on California, Newsom is not working to put in place any reforms. Republicans in California have criticized the state’s cash rebates as failing to get to the root causes of gas prices.