With gas prices touching astronomical levels in the US, lawmakers are looking for means to ease the pain. To help compensate for the rise from $2.90 to $4.19 within a year, legislators have sent multiple proposals for direct stimulus checks.
One of the stimulus checks has been tentatively named the Big Oil Windfall Profit Tax. If it goes through, it will have all the oil majors picking up the tab for the payments.
The bill was introduced by Golden State Democratic Representative Ro Khanna and Rhode Island’s Sheldon Whitehouse. The bill proposes a levy equal to half of the variance between the average price during 2015-19, and the current barrel prices.
Ro Khanna said that at $120 a barrel, the tax amount would bring in close to $45B a year. That could mean a stimulus check of $240 a year for individual filers and $360 for joint filers.
The lawmakers said that the smaller companies that account for around 70% of domestic production get an exemption. This will make it difficult for the giants like Chevron, Mobil, and Exxon to gouge customers any further without losing them.
Other Stimulus Checks Also Proposed
The levy is not the only stimulus check proposed that is related to gasoline prices. Democratic Representatives Mike Thompson, Lauren Underwood, and John Larson proposed the Gas Rebate Act, 2022.
This act is aimed at providing $100 each month to adults and another $100 for dependents for 2022 during months when the average national price of gasoline exceeds $4 per gallon.
This plan and the qualification are based on past stimulus checks that were aimed at jumpstarting the economy that was affected due to the pandemic.
The gas stimulus check would be mailed to single tax filers earning below $75,000 while joint tax filers earning below $150,000 would get the payment.