Proposed Stimulus Check Could Help Soften the Blow at the Pump
As oil prices hang out at all-time highs, sticker shock at the pump continues to impact pocketbooks.
According to a recent press release, “Representatives Mike Thompson (D-Calif.), John Larson (D-Conn.) and Lauren Underwood (D-Ill.) introduced the Gas Rebate Act of 2022 to address high gas prices by sending Americans an energy rebate of $100 per month (and $100 for each dependent) for the rest of 2022 in any month where the national average gas price exceeds $4 per gallon.”
This rebate will apply to the following Americans:
• Single filers earning less than $75,000 and phase out to $80,000
• Joint filers earning less than $150,000 and phase out to $160,000
“The current spike in gas prices is largely the fault of Vladimir Putin. It has nothing to do with the [$1.9 trillion] American Rescue Plan," said Biden during a speaking engagement earlier this month.
Americans feel the impact of Putin’s invasion of Ukraine and lawmakers must work together on policy solutions to ease the financial burden, said Rep. Thompson in the release.
While some lawmakers think government checks are a solution to ease gasoline prices, the Nebraska Ethanol Board released analysis explaining the conversion of 33% of all E10 fuel in the U.S to E15 could potentially displace 100% of Russian import generated gasoline.
A second piece of legislation, the Big Oil Windfall Profits Tax, has been proposed by Rep. Ro Khanna (D-Calif.) and Sen. Sheldon Whitehouse (D-RI).
“This is a bill to reduce gas prices and hold Big Oil accountable. As Russia’s invasion of Ukraine sends gas prices soaring, fossil fuel companies are raking in record profits. These companies have made billions and used the profits to enrich their own shareholders while average Americans are hurting at the pump,” said Rep. Khanna in a recent release.
U.S. oil companies producing or importing at least 300,000 barrels of oil per day will owe a per-barrel tax equal to 50% of the difference between the current price per barrel of oil and the pre-pandemic average price per barrel from 2015 through 2019, the release said.
Revenue raised by this bill would be returned to consumers in the form of a quarterly rebate under the same qualifications from the Gas Rebate Act of 2022. Consumers could see approximately $240 each year (single filers) or $360 per year (joint filers), assuming the cost of a barrel of oil remains at $120.
At this time, there is no confirmation that stimulus checks would be paid by the Big Oil Windfall Profits Tax revenue. Instead, these bills would produce two separate payments to consumers who qualify.
