The Democrats have filed a proposal for a new form of stimulus payments issued every quarter to help Americans manage the rising gas prices.
The legislation, introduced by Rep. Ro Khanna in the House and Sen. Sheldon Whitehouse in the Senate, will impose additional taxes on big oil companies that produce about 300,000 oil barrels a day. The taxes collected from their "windfall profits" will fund the new stimulus payments.
Whitehouse said in his official statement that single filers are estimated to get a $240 rebate while joint filers may receive $360. The stimulus payments will apply to those earning less than $75,000 a year for single filers or $150,000 for joint filers.
Big Oil is raking in record profits while working families are struggling to afford gas at the pump. @SenWhitehouse & I introduced the Big Oil Windfall Profits Tax Act today to stop corporate profiteering, bring gas prices down & return money directly to working Americans.
— Rep. Ro Khanna (@RepRoKhanna) March 10, 2022
Khanna said that the proposal would help Americans save money while big oil companies that don't like to pay the Windfall Profits Tax would be "willing to lower prices," per Business Insider. However, deliberations on this legislation might take some time before it's signed into law. Even then, Republicans are likely to oppose another tax hike.
Gas Vouchers Proposal Raised
On the other hand, some economists are asking lawmakers to come up with gasoline vouchers for Americans who received stimulus payments in the pandemic relief rollout from 2020 to 2021. PNC Financial Services senior economic adviser Stuart Hoffman said that $200 or $300 monthly gas vouchers would enable a family to pump at least 100 gallons.
AGF Investments' chief of U.S. policy strategist, Greg Valliere, believes that there's a realistic chance gas vouchers will earn a look at Congress and the Senate. The experts said that the current scenario has created "a perfect storm for rebates and vouchers," with 2022 being an election year and the astounding increase in gas prices.
Valliere added that the gas voucher program could also incentivize American families to use gasoline less if unused vouchers could be redeemed for cash. They can, in turn, use the money to buy food and other basic necessities.
The proposals come as the average gas price in the U.S. now comes to $4.32 a gallon as of Thursday, March 10, 2022. California has the highest gas price increase at $5.69, while Kansas has the cheapest gas price at $3.82.
The war between Russia and Ukraine has triggered the gas price increase. Russia, one of the biggest gas exporters globally, has been sanctioned for its supply of crude oil, a valuable resource in most U.S. refineries.
New Stimulus Proposal from the Republicans
Meanwhile, the Republicans are also planning to file another stimulus proposal under Sen. Mitt Romney. He plans to bring back the 2021 enhanced child tax credit payments of up to $350 per family. Romney's stimulus payment, dubbed the Family Security Act, will include a strict work requirement eligibility with families getting $350 per child per month if they have kids five years old and below and $250 per child per month for children above six years old. Pregnant moms may also get monthly stimulus payments four months before giving birth.
The Family Security Act would provide greater financial certainty for American families by modernizing antiquated federal polices into a monthly cash benefit, without adding a dime to the deficit. Here’s what conservative leaders and writers are saying: https://t.co/wLhYgw4GNI
— Senator Mitt Romney (@SenatorRomney) February 8, 2021
However, the Family Security Act will also include income thresholds, and families may only maximize the payments at max until $1,250. Sources said that Romney has not formally laid out the legislation as of press time, as he is still discussing ideas with both parties.
