Gas costs a lot. Americans have always had to deal with this burden, but things have gotten worse recently. The national average price for gas as of August 2022 was $4.11 per gallon for regular gas. It was even more for other gas types at $4.56 for mid grade, $4.85 for premium, and $5.19 for diesel. Many Americans may find themselves unable to keep up with rising gas costs. The government has some new proposals since it is aware that individuals are experiencing difficulties. Congress is suggesting not only rebates on gas prices but stimulus checks as well. In reality, there are three bills that have been proposed to address this problem.
What are the Three Bills That Have Been Proposed?
Many people don’t realize how higher gas prices might affect their daily life. However, CBS reports that Americans could spend an additional $2,000 on gas. Along with this, Americans can also anticipate some more significant effects such as changes in consumer spending, the price of plane tickets, and corporate hiring policies.
Nothing is sure at this time on a solution for the rising gas costs. There are three proposals that you might hear about in the future, including:
- First proposal: Americans would receive up to $360 per year.
- Second proposal: Families would receive up to $300 each month.
- A monthly refundable tax credit is the third proposal.
First Proposal: Americans Would Receive Up To $360 Per Year
The Big Oil Windfall Profits Tax Act is potential legislation that may be in the works. Americans may receive up to $360 a year from this act. The proposed legislation would impose a per-barrel tax on businesses that import (or produce) at least 300,000 barrels per day worth 50% of the difference between the price of a barrel of oil today and the pre-pandemic average price from 2015 to 2019. This proposal seeks to “curb profiteering” by the oil industry in order to relieve American citizens.
If oil were to cost $120 per barrel, for instance, this act could raise $45 billion. These resources might lead to a quarterly rebate of:
- $240 per year for individual filers
- $360 annually for joint filers
Second Proposal: Families Would Receive Up To $300 Each Month
Another proposal called The Gas Rebate Act would provide families with up to $300 per month for the remainder of 2022. The condition is that the national average price of gas must remain over $4. The Gas Rebate Act can provide:
- $100 for filers who are single and earn up to $75,000
- $100 for joint filers earning up to $150,000
- $100 for each dependent for up to two
Therefore, a single filer or joint filer with two children may receive up to $300 a month. Representatives from Illinois, Connecticut, and California proposed this legislation.
A Monthly Refundable Tax Credit Is The Third Proposal
The Stop Gas Price Gouging Tax and Rebate Act is the list’s last item. In accordance with this proposed legislation, oil corporations would be subject to a one-time windfall profit tax of 50% on any adjusted taxable income (ATI) in 2022 that exceeds 110% of their average ATI from 2015 to 2019 before the pandemic. Consumers would receive a monthly refundable tax credit in the form of the tax revenue that is generated. Although the compensation for each individual has not been determined, it will depend on the amount of money raised.
Are There Any Other Stimulus Opportunities for Increasing Gas Prices?
There are different opportunities that you should keep in mind in addition to the three national proposals mentioned above. California is currently proposing its own stimulus payments as well. Governor Gavin Newsom suggested an $11 billion aid program. Residents of California may benefit from this program as gas prices continue to rise. Owners of registered vehicles may qualify for $400 direct payments on up to two registered vehicles under this program. In addition to giving Americans money, it also suggests offering three months of free public transportation! The best part is that this proposal has no income limit.
Even if California is now the only state with a plan to assist its citizens with rising gas prices, you might benefit from staying up to date with local news. This is due to the possibility that your state will also decide to assist its citizens! Keep an eye out for any potential new stimulus chances that might become available for your state.
Alternative Ways to Save on Gas
Aside from government aid, there are more ways to save money on gas! Your car consumes a certain amount of gas depending on a number of different things. As a result, consumers may find themselves saving money on gas in ways they would not expect! People can save money on gas by:
- Using gas reward programs to your advantage
- Taking their car’s fuel efficiency into account
- Finding the best gas stations
- Paying attention to their driving habits
- Conducting regular car maintenance
- Paying for gas with physical cash
Bottom Line
For many Americans, gas is a vital part of daily life. People may find out that they might pay an additional $2,000 more due to increased gas prices. However, there are legislators in congress working to find a solution to this problem. Three bills have been proposed:
- First proposal: Americans would receive up to $360 per year.
- Second proposal: Families would receive up to $300 each month.
- A monthly refundable tax credit is the third proposal.
There might be additional chances for state assistance besides these proposals. For instance, in an effort to overcome rising gas prices, California announced its own stimulus relief plan. Because of this, it can be beneficial for you to see whether your state offers any options. You might be surprised to know that a proposal is being prepared! Nothing has been formally approved yet–they are all just plans. However, they might pass, which means that Americans who are struggling financially might find some relief from these extra gas expenses.
