Even though New York’s new stimulus package plans $400 relief checks for residents to combat inflation, some significant concerns over the exclusion of certain people from such aid exist — and the question whether the one-time payment is sufficient to enable these people to cope with real inflationary pressures is looming large.
The office of Governor Kathy Hochul stated that 6 million taxpayers are to be given the automatic aid of the up to $400, depending on their income and tax filing status. This amount forms part of the $2 billion economic relief package that is set, through, to cover the rising costs of food, rent, and utility across the state.
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Although it is enlightening news, some critics still insist that the plan has limitations and the payment itself may not be correctly delivered, missing the most in-need people and at the same time securing the positions of low-middle-income families, gig workers, and the dependents left behind the support program.
Who Gets the $400 Check — and Who Doesn’t?
According to the plan, the biggest amount of $400 is given to the co-filers with an income of less than $150,000. A single filer with an income up to $75,000 will be paid $200, and people with earnings between $75,000 and $150,000 are entitled to $150. The next group, that is, the households with an annual income range of $150,000-$300,000 also have access to this support, though for the reduced payment of $300.
However, you should also meet the following criteria:
- Filed taxes
- Not be claimed as a dependent
- Fit within the specified income brackets
It means that many students of higher educational institutions, youth living with their parents, and the underprivileged families with complicated tax profiles may continue to live without any assistance.
No Action Required — But No Options Either
The funds will be sent out automatically as per the 2023 tax records available at the IRS. Thus, there is absolutely no need for any application process — or permission for that matter.
Which has spurred anger from organizations trying to change a system that they say did not give all the deserving the possibility to update or appeal their eligibility. “The one who is without the automatic relief is surely in trouble,” reflected one expert of policy from New York, “but excluding the wrong people is just a way of fortifying inequality.”
Is One Check Enough to Make a Difference?
The introduction of the relief at this very moment is more than necessary. The prices of food, transportation, and energy are incessantly high in such regions as the Northeast. In the current deflationary environment in the US when people in NY were still paying for necessities 20-30% more than three years ago, in essence, many New Yorkers are still spending that much more.
Governor Hochul clarified the program in a press conference saying: “Our effort to ease living costs for ordinary families includes this payment as only a part of it.”
Furthermore, her office highlights that families will be able to take advantage of new child tax credits, which will be an extra $1,000 to $1,500 per family depending on the years and number of children.
However, State Senator James Skoufis and a few others are of the opinion that one-time checks “treat the symptom, not the disease.”
More States May Follow — But With Tweaks
Not just elsewhere in the country. Other than New York, where they are reportedly looking at the possibility of introducing forms of inflationary rebates this summer are some states such as California, Minnesota, and Illinois.
The difference in approach to what to do about the case in other states is apparent since, in some, it would not be an automatic model like New York’s, where there is an option to be included and support can be given in layers based on employment, rent burden, or utility costs.
What’s Next?
According to the Governor’s office, checks would be issued within the following weeks, although exact dates are still undisclosed.
Supposing your taxes for 2023 have been submitted and you are eligible, you will automatically get the fund—either as a direct deposit or a mailed check, without any action on your part.
In contrast, if you are in doubt about the eligibility you may have, the state is planning to offer an online eligibility checker once the payouts begin.
Although the $400 inflation payment in New York can address the immediate financial need, the issue of the long-term solution has not been solved. As the fiscal situation gets more severe in the state, the real issue to focus on is: Is this the initial stage of a wider support system, or simply a temporary move and disappears with inflation?
On a separate note, we will report on the progress and changes of the new policy as they take place.
