Fourth Stimulus Check May Be Given This Year as Democrats Unveil New Quarterly Payments Proposal

Due to soaring petrol costs, discussions of further stimulus checks have gathered traction in recent weeks.

We now have a measure that might offer Americans a fourth stimulus check. Democrats have proposed a plan that, if passed, would provide quarterly stimulus checks to American homes.

Last week, Rep. Ro Khanna of California and Sen. Sheldon Whitehouse of Rhode Island proposed a measure that would levy a tax on major oil firms and use the proceeds to give Americans a fourth stimulus check. Senators Bernie Sanders, Elizabeth Warren, Michael Bennet, and Sherrod Brown have all signed on to this bill.

The new draft imposes a new tax on the country's top oil corporations that produce or import more than 300,000 barrels of oil per day. The goal of such a tax is to equalize half of the difference between the present price of a barrel of oil and the average price from 2015 to 2019.

This new Democratic idea comes as gas prices continue to rise. Following President Joe Biden's restriction on Russian oil imports, gas prices are projected to climb further. Though rising gas costs and the fact that there is still an ongoing demand for additional stimulus checks, Republicans are opposed to tax increases so this new idea is unlikely to pass.

Will the Legislation To Provide Stimulus Checks Pass?

Democrats may use the budget reconciliation procedure to move forward with the measure, but they would need the backing of all Democrats to do so. Many people feel that certain conservative Democrats will refuse to provide more money at a time when the economy is strengthening, according to Share Wise.

Despite the endorsement of several senior Democratic congressmen and senators, the chances of this new stimulus bill becoming law are slim. Republicans opposed the American Rescue Plan Act, which approved the stimulus payments last year. Right-wing MPs have been overwhelmingly opposed to tax increases so they are unlikely to embrace this one.

With no Republicans on board, Democrats would have to rely on unanimity within their ranks to enact legislation. If a Republican filibuster blocked the bill from moving forward, they would have to utilize a procedural tactic known as reconciliation.

Some of the left's more conservative politicians have been hesitant to grant further economic assistance via reconciliation in recent months, and they are unlikely to support this new idea. With the economy still in shambles and prices on the rise, policymakers may be forced to act, and this bill is one possible answer, as per Fool.

Stimulus Checks Helped Americans, Economy

The US government has released a new study detailing the impact of stimulus checks on people and the economy of the country. Since the start of the coronavirus pandemic two years ago, the idea of stimulus checks has been in place, and citizens have received three back-to-back stimulus checks approved by Congress.

The first two stimulus checks were issued under Donald Trump's administration in April and December 2020 while the final check was issued under the American Rescue Plan in March 2021 by Joe Biden. A lot of time has gone by since the last stimulus check, and residents are still dealing with growing prices, healthcare crises, and a variety of other concerns. The current government, on the other hand, is deafeningly mute on the subject.

Checks have a lot of beneficial influence, according to a paper authored by Christy Bieber of the Motley Fool, a money expert. The US Department of Health and Human Services determined that the first two stimulus checks were sufficient to keep nearly 10.8 million Americans out of poverty, and Congress may simply reproduce this impact in the future by taking similar acts.

According to HHS estimates, the Rescue Plan assisted roughly 7.9 million people in 2021, and the child tax credit effort lifted 1.8 million people out of poverty, resulting in a 23 percent reduction in poverty. After the stimulus checks were halted, however, 60% of households stated that they could no longer afford to buy essentials for their family.

Mark Wolfe, NEADA's executive director, is continuously seeking the government for more than $1,100 checks. According to him, the simplest approach to aid people in his inflation and pandemic is to immediately provide them money to pay bills and purchase goods, Digital Market News reported.