Is the stimulus checking for high gas prices? Here’s what could happen

stimulus checking for high gas prices

An array of Democratic lawmakers is looking to reduce the burden of American motorists burdened by higher gas costs by offering a second round of stimulus cash.

House Reps. Mike Thompson of California, John Larson of Connecticut, and Lauren Underwood of Illinois are co-sponsoring a bill to allow monthly energy rebates of $100 in any year. The average national cost of gas was more significant than $4 per gallon.

The average price for gasoline in the United States was $4.24 for a gallon last week, as per the American Automobile Association.

The Gas Rebate Act of 2022 will also offer the same monthly rebate for every dependent.

The bill will function similarly to the stimulus check delivered to Americans in the initial stages of the coronavirus pandemic.

People who earn less than $75,000 a year will receive the total $100 rebate, and Who will reduce checks for those making up to $80,000 to zero. Joint filers earning less than $150,000 are eligible for the rebate, and it is phased out at the rate of $160,000.

“Americans feel the pressure on their pumps due to the illegal invasion by Vladimir Putin of Ukraine. At this point, we must collaborate on common-sense policy options to ease the financial burden my constituents feel,” Thompson said.

Republicans have also suggested returning money into Americans’ pocketbooks, such as the holidays for gas taxes. Two states run by Republicans- Maryland and Georgia – temporarily lifted their gas tax.

Drivers from Georgia and Maryland were given the much-needed relief following legislation in these states that stopped the tax on the last day of the week.

Maryland took the first step, suspending the fuel tax until 30 days until April 16, Governor. Larry Hogan said on Twitter.

Drivers from the Old Line State will temporarily save $0.36 per gallon of gasoline and $0.37 on diesel after prices increased more than $0.40 in a single week, reaching the average price of $3.85, CNN reported.

In Georgia in Georgia, the gasoline tax has been exempted until May 31, and motorists will be able to save $0.29 per gallon of gasoline and $0.32 per gallon for diesel, the governor’s office announced.

Two additional Democratic lawmakers from the state -Two other legislators from the Democratic party – Reps. Ro Khanna of California and Sheldon Whitehouse of Rhode Island — have also proposed an annual rebate to customers who pay a tax on oil and gas companies.

A tax called the Big Oil Windfall Profits Tax will impose a tax equal to 50 percent of the difference between the price currently paid for an oil barrel and its average pre-pandemic price between 2015 and 2019. according to an announcement.

The rise in prices for energy which has been made worse because of the continuing Russian attack on Ukraine, has resulted in Americans more on the gas pump.

The month before, the national average for a gallon was $3.54. In the year prior, Americans were paying $2.88 for a gallon. According to the AAA report, the price of gas recently was $4.24 per gallon at gas stations all across the US.

In states with high taxes, such as New York and California, the gas prices have reached $6 a gallon in certain areas.

Intense energy prices and raging inflation have created fears of a recession; however, some have warned that stimulus checks can help stoke inflation, which is in the 40s and is at record levels.

US crude was traded at over $113 per barrel on Wednesday, while Brent crude cost $120 for a barrel.

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