Did you check gas prices recently? If you haven’t, here’s the summary, prices are just insane. A gallon of gas costs an average of over $5 nowadays. And, it’s not like the economy has been at its greatest lately. That is why it can be hard for people who already have a low income to deal with these riding expenses. Luckily, there may be support around the corner!
The good news is that the government is not exactly unaware of the issue. That’s why Congress proposed stimulus checks and gas rebates. So far, there are three bills that are already filed that aim to offer solutions to the issue.
Let’s Talk About Those Proposed Bills
The idea behind these bills is not just to give Americans money for no reason. The government recognizes that these gas price hikes can affect American lives in many ways. According to CBS’ math, with these gas prices, Americans can find themselves spending up to $2,000. On top of that, gas price changes can impact how much airline tickets are, consumer spending, habits, and more.
While the government hasn’t firmly decided on these bills yet, here are the potential benefits Americans may receive in the future.
- First Proposal: Americans Would Get up to $360 a Year
- Second Proposal: Families Would Get up to $300 a Month
- Third Proposal: A Monthly Tax Credit That’s Refundable
Americans Would Get up to $360 a Year
This proposal is known as the Big Oil Windfall Profits Tax Act. The government is still working on hashing out the details on this proposal. But, American individuals may find themselves getting $360 a year if it goes through. To your potential surprise, the government is considering this decision to fight off the profiteering on Big Oil’s end. Taxation is the name of the game when it comes to this bill. It’ll basically place a per-barrel tax that’s worth 50% of the difference between the current price of an oil barrel and the 2015 to 2019 pre-pandemic average price of an oil barrel for companies that import (or produce) at least 300,000 barrels a day.
This could mean a lot of money for Americans. That’s because if a barrel of oil is $120, then this tax act would raise a whopping $45 billion! These funds could be split up to:
- $360 for Joint Filers
- $240 for Single Filers
Families Would Get up to $300 a Month
For this bill to work, the average price of gas must stay over $4. If that works out, families may receive up to $300 every month till the end of 2022. It is known as the “Gas Rebate Act.” The amount that people would be able to get depends on how much they make:
- $100 for single filers that make up to $75,000
- $100 for joint filers making up to $150,000
- Up to 2 dependants $100 each
So, if a single parent with two kids or joint households with two kids apply for this program’s benefits, they could get up to $300 a month. The whole proposal comes thanks to a bill proposed by representatives of California, Connecticut, and Illinois.
A Monthly Tax Credit That’s Refundable
Just because this one’s last on the list, doesn’t mean you should dismiss it. This bill comes by the name of the Stop Gas Price Gouging Tax and Rebate Act. If it goes through, oil companies would pay a one-time 50% windfall profit tax on any adjusted taxable income (ATI) in 2022 that’s more than 110% of their average ATI during the 2015 to 2019 pre-pandemic levels. If the government gives that money, they’ll channel it to consumers in the form of a monthly refundable tax credit. Sadly, how much these tax credits would be worth has not been specified. However, it would depend on how much revenue was raised.
Is There Any Other Stimulus Related To The Whole Gas Situation?
Yes, there is. Putting those 3 bills aside, California is also proposing its own stimulus payments. Within the proposal is an $11 billion relief program. Living in California is already really expensive. That’s why the government is proposing registered vehicle owners to get $400 a month on up to two registered vehicles. On top of that, the government proposes providing free public transit for three months.
So far, we only have information on the proposal from California. But, that doesn’t mean your state won’t have something similar. It’s crucial to keep tabs on the proposals your state puts forth. Every state wants to see its people doing well. So, keep your eyes peeled for any stimulus your state proposes in the future.
Other Steps You Can Take To Save Money On Gas
It all comes down to how much you pay for gas and how much of it you consume. It works like basically every other expense in your life. You should try to find the smartest decisions to take to help you save an extra penny.
- Make full use of gas rewards programs
- Check on your car’s mileage and see if you can improve it
- Find the gas station with the best bang for the buck
- Drive responsibly. The faster you go, the faster your car burns gas
- As much as you can, keep your car in a good shape
- Consider carpooling
Conclusion
None of us are happy about gas prices nowadays. To put things into perspective, gas is more expensive now than it was during the 2008 financial crisis. And, these gas price rises don’t just affect the average driver. It actually affects many aspects of American life. That’s why the government is keeping a close eye on the situation. When they can, they take actions to help solve the situation. In this case, the government proposed 3 different bills that would result in Americans getting extra money to help out with the problem.
If these bills go through, eligible applicants may find themselves getting cash or tax credit that will help out with their regular expenses. However, you should always try to find the best ways to save up on that gas money.
