US states seek to ease inflation burden with direct payments

PORTLAND, Maine (AP) — With inflation raging and state coffers flush with cash, governors and lawmakers across the U.S. are considering a relatively simple solution to help ease the pain people are feeling at the gas pump and grocery store — sending money.

At least a dozen states have proposed giving rebate checks of several hundred dollars directly to taxpayers, among them California, Kansas and Minnesota. Critics, including many Republican lawmakers, say those checks won't go far enough given the pace of inflation and are pushing instead for permanent tax cuts.

A proposal from Maine Gov. Janet Mills is among the most generous in a state where the cost of food and fuel has skyrocketed in recent months. The Democratic governor wants to send $850 to most residents as part of the state's budget bill.

The rebate “will help Maine people grapple with these increased costs by putting money directly back into their pockets,” Mills said.

But Wendell Cressey, a clamdigger in Harpswell, said the soaring cost of fuel for people in his business means the check will provide just temporary relief.

“It might help a little, but it would have to be a lot more because we’re paying for gas. Most of us have V-8 trucks,” Cressey said. “I just don’t think it’s going to help as much as they think it is.”

In addition to the direct rebates, lawmakers and governors across the country are considering cuts to sales taxes, property tax relief and reducing or suspending state gas taxes.

The proposals come at a time when many states actually have too much money on their hands because of billions of dollars in federal pandemic aid and ballooning tax revenue. It’s also happening as the war in Ukraine has compounded soaring prices for fuel and other essentials.

It's also no coincidence that the...