In California, where income inequality is stark, who deserves a tax rebate?

SACRAMENTO, Calif. — In a state that is home to the nation's highest poverty rate, the most billionaires and a shrinking middle class, who deserves cash relief when prices are soaring?

That question is at the center of ongoing discussions inside the state Capitol as California grapples with a surge in gasoline costs and is projected to have a record-high budget and surplus.

A group of Democrats is proposing sending a $400 rebate to every California taxpayer regardless of income or if they own a gas-powered car. Republican lawmakers have pushed for a suspension of the gas tax, an approach they say would mean faster relief and less negotiations. Gov. Gavin Newsom made a vague promise to "put money back in the pockets" of Californians but has backed off a pitch to tie rebates to vehicle ownership.

While a universal checks-for-all program is likely to be well-received