Most drivers in the country have been paying quite astronomical costs to fill up their tanks over the past few months; in this situation, a stimulus check payment may be very helpful. The nation’s president, Joe Biden, has now chosen a fresh solution in the shape of a federal gas tax holiday.
According to the AAA, the current price of a gallon of petrol is $4.97. Compared to prior costs, when the national average first exceeded the $5 mark, this is a significant improvement. However, the costs have increased from $3.07 and $4.59, respectively, a year ago.
Payment for the Stimulus Check in the Form of Federal Gas Tax
While each state has independently enacted its own taxes, the federal gas tax is 18.4 cents per gallon. A plan that would suspend the federal gas tax through the end of the year and serve as a stimulus payment was first proposed in February by Democratic senators Maggie Hassan of New Hampshire and Mark Kelly of Arizona.
The Biden administration is now paying close attention to this notion, with the Treasury Secretary Janet Yellen describing it as one that was worthwhile consideration.
On the other side, the proposal to temporarily suspend the federal gas tax has come under heavy fire. According to an analysis from the University of Pennsylvania’s Penn Wharton Budget Model, the stimulus check savings from such a break would not be very significant for consumers.
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According to Kent Smetters, a professor at the University of Pennsylvania’s Wharton School, who spoke to CNBC at the time, the savings per person might only be $50 if it were put into effect in March.
