Some lawmakers are seeking to gain some respite as Americans empty their wallets at the petrol stations. The national average for gasoline was $4.24 on Wednesday, somewhat lower than a week ago, when it peaked at $4.31. However, it is still 70 cents higher than a month ago, when the national average was $3.54.
Prices are also $1.36 higher than a year ago. While the Biden administration contemplated distributing gas cards through the IRS, three legislation have been presented in the United States House of Representatives that would send Americans compensation to offset high gas costs.
They would be comparable to pandemic stimulus payments and child tax credits. One would be based on how high oil prices are, while the other two are based on how much money oil firms make. Here’s an overview of all three.
TAX ON BIG OIL’S WINDFALL PROFITS
On March 10, Representative Ro Khanna (D-Calif.) and United States Senator Sheldon Whitehouse (D-R.I.) presented the Big Oil Windfall Profits Tax in an effort to “curb oil company profiteering.” It would levy a tax on huge oil firms such as Exxon Mobil and Chevron and distribute the proceeds to Americans in quarterly instalments.
“This is a bill aimed at lowering gasoline prices and holding Big Oil accountable. As a result of Russia’s invasion of Ukraine, gas prices have skyrocketed, and fossil fuel businesses are reaping record profits. These firms have gained billions and utilised the earnings to enrich their own shareholders at the expense of everyday Americans,” Khanna stated in a press release.
The tax would be levied on oil corporations that produce or import at least 300,000 barrels of oil each day, according to the plan. The tax would equal 50% of the difference between current and pre-pandemic oil prices per barrel. According to MPs, a tax of $120 per barrel of oil would raise nearly $45 billion each year. Single filers would earn approximately $240 per year, while joint filers would receive approximately $360. It adheres to the same principles as the Economic Impact Payments: Single filers earning up to $75,000 or joint filers earning up to $150,000 would be eligible receivers.
STOP GAS PRICE GOUGING TAX AND REBATE ACT
Rep. Peter DeFazio (D-Ore.) presented the Stop Gas Price Gouging Tax and Rebate Act on March 16. It would tax oil firms for “excessive corporate profits” and distribute the proceeds to Americans in the form of a monthly advance tax credit. Oil corporations would pay a one-time windfall profit tax of 50% on income that surpasses 110 percent of their pre-pandemic profits. In a statement, DeFazio stated, “Big Oil is foaming at the mouth.”
“After exploiting Americans for unprecedented profits in 2021, Big Oil is now reaping the advantages of Putin’s price boost.” As we deal with COVID-related supply chain constraints and uncertainty caused by Vladimir Putin’s unwarranted invasion of Ukraine, I remind Big Oil of what President Biden warned just a week ago: this is not the time for profiteering or price gouging. As a result, I introduced the Stop Gas Price Gouging Tax and Rebate Act. In 2022, my measure would tax Big Oil’s excess profits and restore the income to the American people. It’s past time to prioritise people over profits – period.” Single filers earning up to $75,000 and joint filers earning up to $150,000 are eligible. THE 2022
GAS REBATE ACT
Reps. Mike Thompson (D-Calif.), John Larson (D-Conn.), and Lauren Underwood (D-Ill.) introduced the Gas Rebate Act of 2022 on March 17, which would provide Americans with a $100 “energy rebate” per month, plus $100 for each dependent, for each month the national gas price average exceeds $4 per gallon through 2022.
“Americans are suffering the impact of Vladimir Putin’s illegal invasion of Ukraine at the pump right now, and right now we must work together on practical policy solutions to lessen the financial burden that my constituents are feeling,” Thompson said in a statement. “The Putin Price Hike is putting a strain on our economy, and I am delighted to be partnering with Reps.
Larson and Underwood to submit legislation to provide middle-class Americans with monthly payments to alleviate the financial burden of this global crisis.” Single filers earning up to $75,000 or joint filers earning up to $150,000 would be eligible receivers.