The average gasoline price has almost doubled in the past year to $4.19 and has pushed lawmakers to plan ways to ease the pain. With federal stimulus checks on pause, for now, the states have come up with plans on their own to offset the hefty rise in prices of gasoline and other essential commodities. But there is still a sliver of hope on the federal front.
Democratic Representatives have come up with the Big Oild Windfall Profits Tax, which if passed will lead to oil majors picking the tab for the relief stimulus checks. The bill was introduced by Democratic Representative Ro Khanna, California, and Rhode Island’s Sheldon Whitehouse. The bill proposes to levy a tax on oil majors on every barrel of oil they produce.
The amount proposed to be taxed would equal 50% of the price difference between the present price and the average price during 2015-19.
Khanna said that the tax would come to around $45B a year at the rate of $120 for a barrel, which would help single income tax filers receive around $240 a year, while joint filers could receive around $360 each year.
The lawmakers have said that they propose to exempt 70% of domestic producers and only tax the giants like Chevron and Exxon Mobil. They said that these companies cannot be allowed to gouge consumers any further as they stand to lose their market share.
Other Gasoline Related Stimulus Checks On The Anvil
The levy proposed by Representative Khanna is not the only gasoline-linked stimulus check that has been proposed. The Gas Rebate Tax introduced by another group of Democratic representatives proposes giving $100 a month to adults and an identical amount to dependents for the remaining months of 2022 provided the average price of gas in that month exceeds $4 per gallon.
This stimulus check would be given to citizens earning $75,000 or less. For joint filers, the amount would be double at $150,000.