While stimulus payments may not be a major priority for the federal government, they are for many governors, particularly Democratic governors seeking re-election. Governors’ stimulus checks are considered as a method to entice voters. It’s no secret that voters adore direct stimulus checks, as evidenced by the over 3 million signatures on a Change.org petition.
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Q4 2021 Hedge Fund Letters, Conferences, and More for
Value stocks, according to one growth fund manager, will soon lose their lustre.
Over the last year or two, there have been numerous reports about how hedge funds and the broader markets have been rotating into value equities. Indeed, as economic uncertainty deepens, many market analysts predict value stocks will continue to reign supreme for the time being. Hedge fund letters, conferences, and more for Q4 2021 Read More about Voss Capital
Governors’ Stimulus Checks: Why Are They Being Given?
Due to the quick economic recovery and windfalls spurred by pandemic-era federal assistance payments, several states have reaped unexpected tax money. According to a recent survey from the NCSL (National Conference of State Legislatures), half of the states will surpass their revenue estimates for the current year, while 17 states will meet their revenue projections.
Many governors in these states have proposed or are considering issuing direct stimulus cheques to voters. Governor Tony Evers (D) of Wisconsin, for example, has asked Republican legislators to approve $150 stimulus cheques for each resident. Gov. Janet Mills (D) of Maine has proposed offering $500 checks to around 800,000 eligible taxpayers, while Gov. Laura Kelly (D) of Kansas has proposed a one-time $250 tax rebate to people who filed a tax return last year.
Governors have also suggested that targeted payments be made. For example, Michigan Governor Gretchen Whitmer (D) intends to use a $5 billion excess in a state insurance fund to provide drivers with a $400 rebate for each vehicle they own. Gov. Michelle Lujan Grisham (D) of New Mexico proposes a statewide drop in gross receipts taxes, while Connecticut Gov. Ned Lamont (D) proposes lowering property taxes for citizens.
Many people point to California Governor Gavin Newsom’s (D) re-election campaign as an example of how handing out stimulus cheques might aid with re-election. Newsom, who approved stimulus cheques for almost two-thirds of Golden State residents, narrowly avoided recall.
Why Is It A Beneficial Policy?
Governors’ stimulus checks are almost certainly going to be a big part of this year’s campaign ads. Giving stimulus checks, according to political analysts, is one of the best measures at a time when people sorely need economic assistance to combat growing inflation.
Giving out stimulus payments is also a good policy because it puts no additional strain on state budgets. States are mostly handing out stimulus checks with the additional cash they received from the federal government in relief payments, as well as unforeseen tax income.
It’s not just Democratic governors that think that handing out stimulus checks is a good way to get people to vote for them. Republicans think along the same lines, except instead of handing people direct rewards, they prefer indirect benefits like tax cuts.
For example, Iowa Gov. Kim Reynolds (R) has reduced the state’s income tax this year, while Mississippi Gov. Tate Reeves (R) is attempting to abolish the income tax entirely. Tax rebates or credits have also been proposed by the governors of Tennessee and Georgia.