With the average national gas price at $4.25 coming off the weekend, a slight decrease from last Monday’s price of $4.32, the U.S. federal government nixed a plan to send gas cards to Americans to compensate for high prices at the pump. The proposal would have had the IRS distributing gas cards to taxpayers.
However, House Democrats told Axios.com that the plan was “expensive” and “poorly targeted.” In addition, it would tap the resources of the IRS during the height of tax season, which could lead to delayed refunds. Tax refund checks could do more to help Americans cover rising costs and fill their basic needs.
Additionally, distributing stimulus funds in the form of gas cards could worsen inflation and wouldn’t address the real problem of higher gas prices.
“It is not an administratively feasible solution and the Biden administration is not considering this as a serious option to help American families,” White House spokesperson Vedant Patel told Axios.
Other possibilities to reduce gas prices include increasing the ethanol content in gas to reduce oil demand, suspending the federal gas tax through 2022 and calling on oil producers in other countries to ramp up production to compensate for the loss of Russian oil.
Some lawmakers have also proposed a federal rebate when gas prices rise above $4 per gallon.
Meanwhile, roughly 20 states are pondering a gas tax holiday for drivers, waiving state gas taxes for anywhere from 30 days to a full year or more.
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This article originally appeared on GOBankingRates.com: Stimulus Update 2022: Gas Cards Are Not Being Sent to Americans – Here’s Why