Checks for Gas Price Stimulus? Legislators Are Thinking About Pump Relief.

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While President Joe Biden’s administration briefly contemplated issuing gas cards via the IRS, House Democrats have proposed concepts resembling popular epidemic relief programmes such as stimulus payments and the advance child tax credit.

According to AAA’s gas price tracker, the national average price for a gallon of normal gas was $4.24 on March 22.

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In three states: California, Hawaii, and Nevada, the average price of a gallon of gas exceeded $5. Several additional states, including Washington, Oregon, Alaska, and Arizona, are creeping closer to the excruciating price mark.

With this in mind, politicians are considering methods to assist struggling American families.

 

Gas Stimulus

Reps. Mike Thompson of California, John Larson of Connecticut, and Lauren Underwood of Illinois are proposing a $100 monthly energy rebate for individuals or $200 monthly for couples, based on similar criteria to those used for stimulus cheques. The idea would add $100 for each dependent and would be paid to families for each month in which the national average price of gasoline hits $4 per gallon.

Individuals earning up to $75,000 per year or married couples filing jointly earning up to $150,000 per year would be eligible. The Gas Rebate Act would remain in effect until the end of 2022.

Two other plans are reliant on oil company earnings.

Rep. Peter DeFazio of Oregon’s Stop Gas Price Gouging Tax and Rebate Act provides for a monthly tax credit for families. The funds would be raised through a one-time tax on oil firms.

“In 2022, Big Oil will pay a one-time, 50% windfall profit tax on any adjusted taxable income that surpasses 110 percent of their average ATI from 2015 to 2019,” DeFazio added.

Eligibility would once again be determined in accordance with the stimulus checks programme. The amount of money gathered through oil company taxes would decide how much money would be distributed to Americans.

DeFazio stated that the measure is aimed at large oil companies.

It is similar to a previous plan by California Rep. Rohit Khanna and Rhode Island U.S. Sen. Sheldon Whitehouse, which calls for a quarterly rebate funded by oil company taxes:

The proposed measure would impose a per-barrel tax on large oil corporations that produce or import at least 300,000 barrels of oil per day (or did so in 2019) equal to 50% of the difference between the current price of a barrel of oil and the pre-pandemic average price per barrel between 2015 and 2019. The quarterly tax would be levied on barrels of oil produced domestically and imported from other countries.

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Khanna predicted that single taxpayers would earn approximately $240 per year based on a $120 per barrel oil price, while joint filers would receive approximately $360 per year.

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