Some of the most important ideas
- Democrats want to provide quarterly stimulus payouts as gas prices continue to rise.
- In order to get stimulus funds, one must meet the same income requirements as last year’s recipients.
Democrats submitted legislation on March 10 that would increase the amount of stimulus money available to the American people. It is probable that these payments would be sent directly into the bank accounts of American citizens, much like the American Rescue Plan Act’s payments in 2021 did. It would be distributed on a quarterly basis and aimed at helping consumers deal with the growing expense of gasoline.
As long as this bill is signed into law, the stimulus funds will flow to the American people.
On March 10, Rep. Ro Khanna of California and Sen. Sheldon Whitehouse of Rhode Island filed legislation that would provide additional stimulus funds. Several senators, including Sherrod Brown, Bernie Sanders, Elizabeth Warren, and Michael Bennet, are on board.
Large oil companies would be subject to a new tax under the proposed legislation. As a percentage of the difference between today’s oil prices and the average oil prices from 2015 to 2019, a 50% tax would be imposed. A portion of the funds collected would be used to pay out stimulus grants.
Taxpayers earning less than $75,000 and married couples earning less than $150,000 would get stimulus funds. The yearly payments for single taxpayers would be roughly $240, and for married couples filing jointly, they would be around $360, based on current rates.
Since the day the law was announced, the average price of a gallon of petrol has risen to $4.31. With a new embargo on Russian oil imports in response to Russia’s invasion of Ukraine, price hikes are projected to continue.
There is no doubt in the minds of the bill’s backers that oil firms are voluntarily boosting prices in order to maximize their recent record profits. In the hopes of Rep. Khanna, the oil firms will lower the price of petrol in response to the new tax.
As for the wider picture, she pointed out that it would result in significant financial savings for everyone involved. As a huge oil company, you’re not going to want to pay this tax, and therefore you’ll be willing to decrease your pricing.”
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Is the new stimulus measure likely to pass?
To be sure, this new stimulus bill has the backing of some important Democratic congressmen and senators. The American Recovery and Reinvestment Act, which authorized the stimulus payments of last year, was not supported by Republicans. And right-leaning MPs are unlikely to back this one, as they have traditionally opposed tax increases.
To enact legislation, Democrats would require unanimous support from their own party members. If a Republican filibuster blocked the bill from moving forward, they would have to utilize a procedural tactic known as reconciliation. As a result, several more conservative MPs on the left are unlikely to support this new proposal.
In light of the current state of the economy and growing costs, lawmakers may yet take action to help, and this bill presents one such answer as a possibility.