While geopolitical issues have always influenced gasoline prices, we never cease to be surprised. That could be because paying a higher price at the pump is so inconvenient. Representatives from Congress have introduced a bill that may help alleviate the pain. Additionally, several states are already on the case, providing financial assistance to those most likely to feel the pinch as a result of increased gas prices.
Here’s a quick rundown of what’s happening.
Three Democratic members of Congress — California’s Mike Thompson, Connecticut’s John Larson, and Illinois’ Lauren Underwood — introduced the Gas Rebate Act of 2022. If passed, the following would occur: Millions of Americans would receive a $100 monthly energy rebate to help offset the high cost of gasoline. Additionally, eligible families will receive $100 for each dependent.
Income eligibility would closely match the amount of stimulus money previously deposited in bank accounts across the country. Single filers earning up to $75,000, as well as married filers filing jointly earning up to $150,000, would receive the full payment. Additionally, as with previous payments, there will be phase-out levels for those earning more.
Representative Thompson explained the proposal as follows: “Americans are feeling the financial impact of Vladimir Putin’s illegal invasion of Ukraine at the pump, and right now, we must collaborate on common-sense policy solutions to alleviate the financial burden on my constituents.”
While the bill may pass the House of Representatives due to the Democratic majority, passage through the evenly divided Senate will require maneuvering. Despite the fact that we face the same problems, the two parties remain mired in partisanship, which will be exacerbated by the upcoming midterm elections.
Connecticut is already receiving assistance from other states.
The Constitution State’s state legislature has suspended gas taxes until June 30, 2022.
The Georgia legislature passed a bill suspending the collection of motor fuel excise taxes until May 31, 2022.
Idaho residents are eligible for a $75 tax rebate per taxpayer and dependent to help offset the cost of gas.
Everyone who files their taxes in Indiana for the year 2021 will receive a $125 bonus tax refund.
Single taxpayers earning up to $75,000 in New Mexico receive a $250 grant to help cover the increased cost of fuel, while married filing jointly taxpayers earning up to $150,000 receive a $500 grant.
States are drafting legislation.
These two states are collaborating to create a plan to assist residents in paying for gasoline.
- California Governor Gavin Newsome proposed that households with a vehicle receive a $400 check (up to $800 for households with two cars).
- Hawaii’s governor, David Ige, has proposed a $100 bonus for each taxpayer and dependent.
Gas prices fluctuate. It’s comforting to know that some states are sensitive to the plight of their citizens. It will be interesting to see whether Republicans are willing to collaborate with Democrats on a national level in order to assist a larger number of people.