Democrats unveil plan to issue quarterly checks to Americans by taxing oil companies that post huge profits
Democrats unveil plan to issue quarterly checks to Americans by taxing oil companies that post huge profits

Democrats unveil plan to issue quarterly checks to Americans by taxing oil companies that post huge profits

Rep. Ro Khanna from California.Photo by AP / Andrew Harnik

  • Democrats rolled out a plan to issue quarterly checks to Americans, paid with large oil surpluses.

  • “The bigger thing is that it will save all the money,” the rep said. Ro Khanna in an interview.

  • The proposal faces steep odds of passage given GOP resistance.

Democrats submitted a bill Thursday to tax the biggest oil companies, which record their biggest profits for years – and use the money to give quarterly checks to Americans facing brand shock almost everywhere they look.

The legislation will only apply to large companies such as Exxon Mobil, which produce or import over 300,000 oil barrels a day and exempt smaller companies. The 50% tax will be levied on the difference between the current price of a barrel and the average price between 2015 and 2019.

Rep. Ro Khanna of California and Senator Sheldon Whitehouse of Rhode Island are the main sponsors of the bill. Co-sponsors include Sens. Bernie Sanders of Vermont, Elizabeth Warren of Massachusetts, Michael Bennet of Colorado and Sherrod Brown of Ohio.

The plan will also establish a quarterly payment program to provide direct payments to Americans struggling with rising prices. The income limits in the bill are similar to those in the third stimulus check issued last year: Individual taxpayers earning less than $ 75,000 and couples earning $ 150,000 would receive the payments. At $ 120 per. barrel, single files would receive $ 240 a year, and shared archives would receive $ 360.

“The bigger thing is that it will save all the money,” Khanna said in an interview. “If you’re big oil and you look at this, you will not pay this tax, and then you will be willing to lower prices.”

The plan faces big odds of being allowed. Republicans are opposed to tax increases, and center-right Democrats may also be against the measure. A spokesman for Sen. Joe Manchin’s office did not immediately respond to a request for comment.

Energy prices are rising in the wake of the Russian invasion of Ukraine due to traders failing Russian oil, cutting one of the largest oil producers out of global markets. Rising prices were given to companies such as Exxon Mobil and Chevron to report their biggest profits for years, even before the Kremlin launched its military campaign.

The average price of gasoline reached $ 4.31 per gallon. gallon Thursday, according to AAA. It is likely creep up further with the United States imposing a ban on all Russian energy imports in order to punish Russian President Vladimir Putin.

“This is a step we are taking to inflict further pain on Putin, but there will also be costs here in the United States,” President Joe Biden said on Tuesday.

But Americans are seeing prices rise across the board, not just as they fill up their gas tanks. Bureau of Labor Statistics published a report Thursday shows prices rose 7.9% compared to a year ago, especially for furniture, chicken, new cars and steak. Inflation accelerated to the fastest pace in four decades, Insiders Ben Winck and Madison Hoff reported.

Democrats are looking ways to reduce the cost to families by establishing affordable childcare and curbing the cost of prescription drugs, among other new domestic programs. Yet most of their economic agenda has stalled due to opposition from Republicans and Manchin, a democratic holdout.

In the short term, Democrats has hovered suspended the federal gas tax of $ 0.18 per. gallon to give a little help at the pump. But it seems unlikely that it will also overcome strong Republican opposition.

Read the original article regarding Business Insider


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