Are gas costs bothering you? Some Democrats in Congress want to help by providing monthly stimulus cheques when the price of gasoline exceeds $4 per gallon.
According to the American Automobile Association, the national average price of petrol today is $4.24 a gallon (AAA). However, in some regions, such as New York and California, the price has risen to moreover $6 per gallon.
The Gas Rebate Act of 2022 was sponsored by House members Mike Thompson (D-CA), John Larson (D-CT), and Lauren Underwood (D-IL) to mitigate the impact of rising gas costs on your pocketbook. When petrol costs hit $4 per gallon, the plan proposes sending Americans a $100 energy refund each month. Dependents would also earn $100 apiece.
A married couple with three children may be eligible for up to $500. The income criteria and phaseouts would be comparable to those seen during the epidemic. Single taxpayers earning less than $75,000 would be eligible for the full $100 rebate, which would taper off at $80,000. The refund would be available to joint filers earning less than $150,000, with payments phasing off at $160,000.
“Americans are suffering the impact of Vladimir Putin’s unlawful 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 people are facing,” Thompson said in a statement.
A Different Democrat-backed Proposal Would Levy a Tax on Big Oil
Democrats Ro Khanna (D-CA) and Sheldon Whitehouse (D-RI) have proposed their own idea to bring relief at the pump. The Big Oil windfall profits tax, their Robin Hood-style idea, would tax huge oil firms and return the income to people in the form of a quarterly rebate. The oil corporations would be subject to a quarterly tax if they produced or imported at least 300,000 barrels of oil per day.
“This is a bill to lower gas costs while holding Big Oil accountable.” As a result of Russia’s invasion of Ukraine, gas prices are skyrocketing, and fossil fuel businesses are making record profits. “These firms have gained billions of dollars and exploited the proceeds to benefit their own shareholders while everyday Americans are suffering at the pump,” Khanna said in a statement.
Republicans Want Gas Taxes to Be Repealed
Democrats aren’t the only ones seeking methods to alleviate historically high gas costs for consumers. Republicans have their own plans, which include temporarily suspending gas taxes.
The federal gasoline tax is $0.184, according to World Population Review statistics. States levy their own fuel taxes, with the average state taxing gasoline at $0.292 per gallon. Maryland and Georgia have already temporarily stopped their gas taxes.
The Governor of California Has Proposed an $11 Billion Relief Plan
California Governor Gavin Newsom has presented his own relief package for his state’s inhabitants. Gas may cost more than $6 per gallon in some parts of California. The state has one of the highest gas taxes in the US, at $0.533 per gallon, and drivers in the state pay around $300 in gas taxes each year.
On March 23, Newsom revealed his $11 billion rescue plan, which includes $400 compensation to California registered car owners for up to two automobiles. Newsom’s plan also includes three months of free public transit, extra cash for walking and bicycling infrastructure, and accelerated incentives for electric vehicles.