Fourth Stimulus Check Update: Dems Unveil New Quarterly Payment Proposal

Democrats on Tuesday introduced a bill that could send quarterly stimulus checks to American households.

The legislation would impose a tax on the largest oil companies in the country producing or importing over 300,000 oil barrels a day. The tax would equate to 50% of the difference between the current price of a barrel of oil and the average price between 2015 and 2019.

The money collected from the new legislation would then be used to fund a new round of stimulus payments that would be sent quarterly to individual tax filers earning under $75,000 annually or married joint filers making under $150,000.

The amount of stimulus payments would depend on the price of a barrel. At $120 a barrel, eligible individuals may receive a total of $240 a year while married couples filing jointly could get $360.

The new proposal was introduced by Rep. Ro Khanna, D-Calif., and Sen. Sheldon Whitehouse, D-R.I. Cosponsors for the bill include Sens. Bernie Sanders, I-Vt., Elizabeth Warren, D-Mass., Michael Bennet, D-Colo., and Sherrod Brown, D-Ohio.

The new legislation comes amid rapidly rising gas prices. As of Monday, average gas prices in 10 states reached $4.35 per gallon. In California, a gallon of gas costs an average of $5.74.

The prices for gas are expected to continue rising after President Joe Biden imposed a ban on Russian oil imports in response to the Kremlin’s invasion of Ukraine.

Despite support from prominent Democratic figures, the stimulus legislation has a low chance of passing Congress. Republicans are opposed to tax hikes. They also did not support the American Rescue Plan Act, which included a provision that gave households the third round of stimulus checks.

Should a Republican filibuster prevent the bill from moving forward, Democrats would likely need to use a budget reconciliation maneuver to pass the legislation in Congress. With that being said, some conservative Democrats have been reluctant to send out more relief checks to American households, according to The Motley Fool.

Democrats have been eyeing ways to cut costs for American families. In early February, democratic lawmakers mulled suspending the $0.18-a-gallon of the federal gas tax to combat rising prices.