With gas prices still soaring to record-high levels, some lawmakers are urging state and federal governments to consider several proposals to help Americans by providing them with rebates and stimulus payments.
Representatives Mike Thompson (D-CA), John Larson (D-CT), and Lauren Underwood (D-IL) introduced the Gas Rebate Act of 2022. If passed, the Gas Rebate Act will send qualifying Americans $100 each month, and $100 for each dependent, through the end of 2022, while the national gas price average exceeds $4 a gallon.
According to AAA, the national average stood at $4.243 per gallon as of March 25.
“We must work together on commonsense policy solutions to ease the financial burden that my constituents are feeling,” Thompson said in a press release detailing the proposal.
However, some Republican lawmakers spoke out against the rebate program, suggesting that Congress should focus on ways to address soaring inflation and work together on a plan for more American fuel production.
“Democrats’ energy policy is handing out more money we don’t have,” Rep. Kelly Armstrong (R-ND) and the House Energy and Commerce Energy Subcommittee member told the Daily Caller. “It’s a recipe for disaster.”
Another proposal, the Big Oil Windfall Profits Tax, introduced by Rep. Ro Khanna (D-CA) and Sen. Sheldon Whitehouse (D-RI), seeks to provide quarterly rebates based on oil and gas company taxes.
“We’ve seen this script before, and we cannot allow the fossil fuel industry to once again collect a massive windfall by taking advantage of an international crisis,” Sen. Whitehouse said in a release. “I propose sending Big Oil’s big windfall back to the hardworking people who paid for it at the gas pump.”
According to the release, the per-barrel tax will be levied on large oil companies that produce or import at least 300,000 barrels daily. The tax would be equal to half of the difference between the current barrel price and the average price per barrel between 2015 and 2019. Rough estimates suggest qualifying families could receive up to $360 a year.
Rep. Peter DeFazio (D-OR) has proposed the Stop Gas Price Gouging Tax and Rebate Act, calling for the taxation of large oil companies’ excess profits in 2022. The bill states that the nation’s Treasury Department would determine the tax credit for Americans based on the revenues collected.
“It’s beyond time to put people over profits, period,” Rep. DeFazio said in a statement.
All three proposals would follow the same eligibility requirements as previous stimulus packages: individuals earning less than $75,000 and couples earning less than $150,000. The rebates would be phased out for those making $80,000 and $160,000, respectively.
Meanwhile, in California, where gas prices have consistently remained the highest in the nation, Gov. Gavin Newsom announced on March 23 a proposal totaling $11 billion that would give state residents tax breaks, free rides on public transportation, and up to $800 in gas cards.
The money would be issued from the state to those who have a car registered in California. According to the proposal, those without registered vehicles would still qualify for free transportation by bus or train for three months.
“We’re taking immediate action to get money directly into the pockets of Californians who are facing higher gas prices as a direct result of Putin’s invasion of Ukraine,” Gov. Newsom said in the press release. “But this package is also focused on protecting people from volatile gas prices and advancing clean transportation – providing three months of free public transportation, fast-tracking electric vehicle incentives and charging stations, and new funding for local biking and walking projects.”