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Senator Grove's cost-of-living tax credit faces opposition over state budget impact; committee denies immediate passage
Summary
Sen. Grove presented SB 1277 to create a graduated, refundable cost-of-living tax credit. Supporters said it would deliver immediate relief to struggling Californians; opponents including the California Teachers Association and California Tax Reform Association warned it would strain the general fund and invite fraud. The committee initially failed to advance the bill and granted reconsideration.
Senator Grove introduced Senate Bill 1277 as a graduated, income-based cost-of-living tax credit intended to provide immediate cash relief to families coping with high housing, energy and transportation costs. "Senate bill 12 77 establishes the California cost of living tax credit to help Californians cope with the state's persistently high cost of living," she said in opening remarks, citing estimates of high housing premiums and rising utility bills.
Supporters at the hearing argued the credit would be an efficient, targeted way to help households. Lance Christiansen of the California Policy Center told the committee the measure would place "direct graduated…
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