By giving another batch of stimulus checks, a group of Democratic lawmakers hopes to relieve the burden on American motorists who are struggling with increased gas prices.
Over the weekend, gas prices in the United States dipped somewhat, but not much. The average price of gasoline decreased to $4.27 per gallon on Friday, down 6 cents from the previous high of $4.33 set on March 11.
A Potential New Stimulus Check Will Help Motorists
However, the majority of Americans continue to pay more for gasoline than the previous high of $4.10 established in 2008. The good news is that oil prices have dropped significantly from recent highs, albeit they continue to put a strain on people's budgets, Unica News reported.
With uncertainty about how the US would compensate for an oil shortfall created by President Joe Biden's sanctions against Russian oil and energy, crude oil prices and the average cost of gas are expected to rise in the near future.
Last week, the Biden administration contemplated distributing prepaid gas cards to Americans throughout the country to help alleviate the agony of paying for gas. With millions of Americans returning to work as the pandemic fades, the Biden administration has identified the rising cost of gasoline as a major concern.
The White House was certain, according to a House Democrat engaged in the discussions, that the initiative would be much too costly, ineffective, and impossible for the IRS to handle at a time when it is already dealing with a tremendous backlog of tax forms.
Republicans Also Propose Other Ways to Help Stuggling Americans
Per NY Post, Republicans have also offered methods to put money back in the pockets of Americans, such as gas tax holidays. Maryland and Georgia, both Republican-controlled states, have temporarily halted their gas taxes.
Last Friday, lawmakers in Georgia and Maryland suspended the levies, providing much-needed respite to drivers in both states. Maryland was the first to act, suspending its gas tax for 30 days, until April 16, according to Governor Larry Hogan.
According to CNN, drivers in the Old Line State can save $0.36 per gallon of gas and $0.37 per gallon of diesel for a limited time after prices jumped by more than $0.40 in a week to an average of $3.85. According to the governor's office, Georgia's gas tax has been waived until May 31, saving drivers $0.29 per gallon on gas and $0.32 per gallon on diesel.
Reps. Ro Khanna of California and Sheldon Whitehouse of Rhode Island are two more Democratic congressmen who have proposed a quarterly refund to customers based on a tax placed on gas and oil firms.
According to a statement, the Big Oil Windfall Profits Tax would collect 50% of the difference between the current price of a barrel of oil and its pre-pandemic average price between 2015 and 2019.
The rise in energy prices, which has been compounded by Russia's ongoing invasion of Ukraine, has resulted in higher gas prices for Americans. The national average was $3.54 per gallon a month ago. Americans were spending $2.88 per gallon on average a year ago. According to the AAA, gas prices in the United States recently averaged $4.24 a gallon.
Millions of Americans received a stimulus check for up to $1,400 last spring. These stimulus payments are not subject to taxation. "No, the Third Economic Impact Payment is not includible in your gross income, thus you will not include the third payment in your taxable income on your 2021 Federal income tax return or pay income tax on the third payment," according to the IRS.
Unfortunately, there appear to be some internet hoaxes circulating among those who feel they are being taxed on stimulus checks. Ignore any such incorrect information if you come across it, as per The Motley Fool via MSN.
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