Gas price stimulus check? These 3 proposals in Congress aim to offset high gas prices
As Americans empty their wallets at the gas pumps, some lawmakers are working to get some relief.
The national gas price average was $4.24 Wednesday, slightly lower than a week ago when gas reached a high of $4.31. But it’s still 70 cents more than a month ago, when the average was $3.54. And prices are $1.36 more than a year ago.
While the Biden administration considered sending gas cards through the IRS, U.S. House Democrats have introduced three bills that would send Americans payments to offset high gas prices. They would be similar to pandemic stimulus checks and child tax credits.
One of them would be based on how high has prices are; the two others are based on how much oil companies make.
Here’s a look at all three.
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Big Oil Windfall Profits Tax
On March 10, Representative Ro Khanna (D-Calif.) and U.S. Senator Sheldon Whitehouse (D-R.I.) introduced the Big Oil Windfall Profits Tax to “curb profiteering by oil companies.” It would tax large oil companies like Exxon Mobil and Chevron and give that money to Americans as a quarterly payment.
“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,” Khanna said in a press release.
Under the bill, the tax would apply to oil companies that produce or import at least 300,000 barrels of oil per day. The tax would be 50% of the difference between the current price and pre-pandemic price per barrel of oil.
At $120 per barrel of oil, the tax would raise approximately $45 billion per year, lawmakers said. Single tax-filers would receive an estimated $240 per year, and joint filers would receive about $360.
It follows the same guidelines as the Economic Impact Payments: Eligible recipients would be single filers earning up up to $75,000 or joint filers earning up to $150,000.
Stop Gas Price Gouging Tax and Rebate Act
Rep. Peter DeFazio (D-Ore.) on March 16 introduced the Stop Gas Price Gouging Tax and Rebate Act. It would tax oil companies for “excessive corporate profits” and give that money to Americans as a monthly advance tax credit.
Oil companies would pay a one-time 50% windfall profit tax on income that exceeds 110% of their income pre-pandemic.
“Big Oil is foaming at the mouth,” DeFazio said in a statement. “After price-gouging Americans in 2021 to make record profits, Big Oil is now reaping the benefits of Putin’s price hike. As we face COVID-related supply chain bottlenecks and uncertainty created by Vladimir Putin’s unprovoked invasion of Ukraine, I repeat to Big Oil what President Biden said just a week ago – it’s no time for profiteering or price-gouging. This is why I’ve introduced the Stop Gas Price Gouging Tax and Rebate Act. My legislation would tax Big Oil’s excess profits in 2022 and return the revenue back to Americans. It’s beyond time to put people over profits – period.”
Single filers who earn up to $75,000 and joint filers who earn up to $150,000 would be eligible.
Gas Rebate Act of 2022
On March 17, Reps. Mike Thompson (D-Calif.), John Larson (D-Conn.) and Lauren Underwood (D-Ill.) introduced the Gas Rebate Act of 2022, which would send Americans an “energy rebate” of $100 per month, plus $100 for each dependent, for each month the national gas price average exceeds $4 per gallon through 2022.
“Americans are feeling the impact at the pump of Vladimir Putin’s illegal invasion of Ukraine, and right now we must work together on commonsense policy solutions to ease the financial burden that my constituents are feeling,” Thompson said in a release. “The Putin Price Hike is putting strain on our economy, and I am proud to be working with Reps. Larson and Underwood to introduce this legislation to provide middle-class Americans with monthly payments to ease the financial burden of this global crises.”
Eligible recipients would be single filers earning up up to $75,000 or joint filers earning up to $150,000.
This story was originally published March 23, 2022 at 1:03 PM.
