Bill Overview
Title: Gas Prices Relief Act of 2022
Description: This bill provides for a temporary exemption through 2022 from the excise tax on gasoline (other than aviation gasoline) and from the Leaking Underground Storage Tank Trust Fund financing rate. The Department of the Treasury must transfer from the general fund to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund amounts resulting from the exemption provided by this bill. The bill also expresses congressional policy that consumers immediately receive the benefit of this exemption.
Sponsors: Rep. O'Halleran, Tom [D-AZ-1]
Target Audience
Population: Individuals who use gasoline or are affected by transportation costs globally
Estimated Size: 332000000
- The bill intends to provide a temporary exemption from the excise tax on gasoline which would directly affect gas prices.
- Individuals who utilize gasoline for everyday transportation (such as commuters) will be affected.
- Commercial entities relying on gasoline for transport and delivery services will see changes in operational costs.
- The bill targets economic relief by decreasing gasoline costs, potentially benefiting individuals economically dependent on vehicle usage, including commuting workers, delivery drivers, etc.
- This exemption will influence the entire supply chain that relies on gasoline, potentially affecting consumer goods' prices that include transportation costs.
- Indirectly impacts individuals who do not drive but use goods/services affected by transportation costs.
- The bill applies to gas prices and taxes within U.S. jurisdiction, primarily impacting U.S. residents.
Reasoning
- The Gas Prices Relief Act of 2022 provides economic relief by exempting the excise tax on gasoline, directly affecting users of gasoline, primarily commuters, delivery services, and businesses relying on vehicle transportation.
- With an estimated $12 billion in relief funds for year 1, the impact on individual well-being could be significant if savings are large enough per person.
- Given the near-universal reliance on gasoline in the U.S.—from personal vehicle commuters to industries like logistics and transport—the policy's benefits could have a wide reach, though not equally affecting all.
- The budget constraints mean the relief will not offset all transportation costs but will provide some alleviation, with higher potential impacts in regions more dependent on automobiles or with higher pre-adjustment gas prices.
- Consideration is given to people not directly using gasoline but affected via supply chain savings, though their perceived individual benefits might be less direct or noticeable.
Simulated Interviews
Freelance Graphic Designer (Austin, TX)
Age: 32 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 15/20
Statement of Opinion:
- I typically spend a lot on gas since I have to drive a lot for work and supplies.
- Any reduction in gas prices is helpful, especially when client payments are delayed.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Car Factory Worker (Detroit, MI)
Age: 45 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 0.5 years
Commonness: 10/20
Statement of Opinion:
- I don't pay for gas directly, but if this helps keep commute costs down and maybe makes things cheaper, I'm for it.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Retired (Phoenix, AZ)
Age: 67 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 1.0 years
Commonness: 8/20
Statement of Opinion:
- Gas costs have been a concern, but if they go down, it could help me stretch my budget further.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Bartender (New York, NY)
Age: 25 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 0.5 years
Commonness: 12/20
Statement of Opinion:
- I don't drive much in the city, but maybe cheaper gas will make friends' visits less expensive.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Software Engineer (San Francisco, CA)
Age: 39 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 5/20
Statement of Opinion:
- I own an electric car, so gas prices don't impact me directly. Any decrease in distribution costs affecting prices for goods might be beneficial.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Delivery Driver (Charlotte, NC)
Age: 58 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 1.0 years
Commonness: 7/20
Statement of Opinion:
- If gas gets cheaper, I can take home a bit more each month without cutting my work hours.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Environmental Scientist (Seattle, WA)
Age: 29 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 6/20
Statement of Opinion:
- I feel conflicted. Lower gas prices might encourage more driving, but if it eases financial pressure on low-income drivers, it's a good thing.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Logistics Manager (Chicago, IL)
Age: 54 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 4/20
Statement of Opinion:
- Cheaper gas would be great for business costs, potentially allowing for better wages or bonuses for my team.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
College Student (Boulder, CO)
Age: 22 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.5 years
Commonness: 9/20
Statement of Opinion:
- I'm not driving daily, but any cheaper travel costs are welcome for road trips and visits home.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Retail Store Owner (Miami, FL)
Age: 40 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 5/20
Statement of Opinion:
- Lower gasoline costs could help reduce transportation costs within my supply chain, allowing for competitive pricing.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Cost Estimates
Year 1: $12000000000 (Low: $10000000000, High: $14000000000)
Year 2: $1000000000 (Low: $800000000, High: $1200000000)
Year 3: $500000000 (Low: $400000000, High: $600000000)
Year 5: $100000000 (Low: $80000000, High: $120000000)
Year 10: $10000000 (Low: $8000000, High: $12000000)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The bill is intended to be temporary and limited to 2022.
- Estimates rely on forecasts of gasoline consumption, which can vary with price changes, economic conditions, and seasonal demands.
- The net economic impact assumes full pass-through of tax savings to consumers, which may not always occur.
- The Treasury's fund transfers ensure trust fund solvency, preventing potential funding issues for highway projects.