Economy

Fighting Inflation With More Inflation: Congress Considers Gas Rebate

Written by T. Logan Dayne

Congress is considering a federal gasoline stimulus that looks to give $100 per month per person with an additional $100 for each dependent. This money would go to places where the average gasoline prices are more the $4 a gallon. For some, this would offset the price of about 1 week’s worth of gas. 

The inflation caused by massive government spending is being felt by everyone in the nation but especially by those to whom pennies matter most. But rather than try and bring down inflation, the strategy seems to be more spending. No one stops to ask how inflation became so high, to begin with, those in power just keep doubling down on the same position and those who lose most will be the lower and middle class. California is looking to give state payouts as well-meaning that qualifying Californians could receive both federal and state payments. Don’t ask where the money is coming from though because not even the Representatives, committees, and leaders know. Rep Mike Thomason (D), one of the main leaders pushing this plan hasn’t come up with a plan to pay rebates and doesn’t even know how much it will cost. 

Meanwhile, Sen. Alex Padilla (D-Calif.) has decided that the solution is more taxes. He is pushing The Big Oil Windfall Profits Tax Act requiring oil companies that produce or import 300,000 barrels of oil a day to pay about 50% of the difference between the current price of a barrel of oil and the pre-pandemic average. It should be stated that no country or state has ever taxed itself into prosperity. California’s taxes and regulations have only increased the cost of living but to the leaders of the state there is no such thing as “Deregulation”. To them, all problems can be solved through more control. Other ideas being proposed include placing or increasing tariffs on all countries that are not sanctioning Russia.

There are, of course, many problems with these proposed plans. The worsening causes of inflation, however, is not chief among them. House Transportation and Infrastructure Committee Chairman Peter DeFazio (D-Oregon) is concerned about the people who don’t drive who would be qualifying for the $100 rebate. “There are a significant number of people who don’t drive. There’s no way to know who does buy gas and who doesn’t buy gas,” he said. As to what the plan is for these coastal states seems vague but DeFazio says “We all agree we’ve got to do something.” For better or more likely worse, the coastal states wait whatever that “something” is. 

Photo Cred: Tom Williams / CQ Roll Call / Bloomberg via Getty Images file