Checks for Gas Stimulation? Some Legislators Are Advocating for It.

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Americans were already facing soaring inflation earlier this month, when petrol prices soared to an all-time high. Now, some senators are proposing that the federal government issue stimulus grants or rebate checks to assist alleviate the agony at the pump.

According to one new plan offered by Reps., families with two children may receive up to $300 per month as long as the nation’s average petrol price reaches $4 per gallon. California’s Mike Thompson, Connecticut’s John Larson, and Illinois’ Lauren Underwood. All three members of Congress are Democrats.

American households could face a $2,000 increase in costs this year as a result of the recent climb in gas prices — on top of an additional $1,000 in grocery store costs as a result of the sharpest inflation increase since 1982. Consumers have already reported reducing their spending or driving less, with the majority citing sticker shock at the pump.

 

gas stimulus check

 

The gas stimulus would “give middle-class Americans with monthly payments to alleviate the financial strain of this global catastrophe,” Thompson said in a statement announcing the proposal, alluding to Russia’s invasion of Ukraine, which has driven up gas prices.

At the moment, millions of Americans would qualify for the payouts based on current gas prices, which, according to AAA, averaged $4.24 per gallon on March 22.

While it is uncertain whether any of the legislation will be introduced, politicians are clearly concerned about the hardship on American households caused by high gas costs. The following describes how these proposals might operate.

For families, $300 per month
The Gas Reimbursement Act, as proposed by Thompson, Larson, and Underwood, would provide a $100 monthly energy rebate to each household member. This refund would be available for the remainder of 2022 if the national average gas price exceeded $4 per gallon in any given month.

The measure would provide $100 to joint and single taxpayers, as well as $100 to each dependent. In other words, a family with two children may get up to $300 in rebate checks per month.

The idea would operate similarly to the federal government’s three stimulus checks provided in 2020 and 2021, with payments targeted at low- and middle-income households. Individuals earning less than $75,000 per year would receive the full $100 rebate, but those earning up to $80,000 would see their checks phased off.

 

Gas Stimulus

 

According to Thompson’s statement, joint filers earning less than $150,000 would qualify, with the payout phasing out at $160,000 in household income. The plan makes no mention of how the refund checks would be paid, and the bill’s text has not yet been published.

Family rebates of $360 per year
A second proposal, introduced by Rep. Ro Khanna, a California Democrat, and Sen. Sheldon Whitehouse, a Rhode Island Democrat, would provide a quarterly rebate to consumers based on an oil and gas industry tax.

According to the parliamentarians’ statement, the Big Oil Windfall Profits Tax would levy a per-barrel tax equal to 50% of the difference between the current price of a barrel of oil and its pre-pandemic average price between 2015 and 2019.

The two lawmakers determined that assuming the price of a barrel remains at $120, the tax would raise almost $45 billion year, providing $240 to single filers and $360 to joint filers.

“As a result of Russia’s invasion of Ukraine, gas prices have skyrocketed, and fossil fuel businesses are reaping record profits. While everyday Americans are suffering at the pump, these firms have profited billions and utilised the proceeds to reward their own stockholders “According to Khanna’s statement.

Rebates depending on the revenues of energy companies
Rep. Peter DeFazio, D-Oregon, introduced a third proposal that would establish a rebate based on oil company profits. The amount Americans would receive is unknown because the idea is dependent on taxing oil and gas firms’ profits this year.

“My legislation will tax Big Oil’s excess profits in 2022 and reinvest the cash in American families,” DeFazio said in a statement announcing the bill, dubbed the Stop Gas Price Gouging Tax and Rebate Act.

DeFazio cited a report by the watchdog group Accountable.us estimating that the major oil and gas companies will make a record $205 billion in profits in 2021.

The Treasury Department would compute the tax credit amounts based on revenue generated by oil and gas company profits being taxed. According to a statement from Rep. Underwood, who proposed the measure with DeFazio, the bill proposes a one-time 50% tax on any adjusted taxable income in 2022 that exceeds 110 percent of their average adjusted taxable income from 2015 to 2019, or the years preceding the pandemic.

 

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The reimbursements, like the government stimulus handouts, would be income-based. The payments would be made to single filers earning less than $75,000 and joint filers earning less than $150,000 each year.

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