House Democrats are calling on the Internal Revenue Service (IRS) to increase mileage benefits for drivers.
Bloomberg reports that Democrats are urging the IRS to increase the tax break to help small businesses that depend on high mileage, including truck drivers, drivers and other transportation-related businesses with rising costs.
Congressmen ask IRS to increase mileage allowance
Mileage is the amount a contractor can deduct from his taxes per gallon. Currently, corporations, gig workers, and other business owners can deduct 58.5 cents per mile as operating expenses for federal taxes.
A letter obtained by Bloomberg informs that Representatives Sharice Davids of Kansas and Ruben Gallego of Arizona, along with other Democrats, have asked IRS Commissioner Chuck Rettig to temporarily increase that amount as a means of helping small businesses meet the challenges that caused by skyrocketing gasoline prices.
Business owners should not be the victims of rising gasoline costs
Referring to the unfairness of creating companies that require a large amount of gasoline to force their operations to swallow rising fuel costs, Gallego said: “Small business owners and drivers in shared cars should not bear the brunt of rising gas prices caused by greed. of oil companies and Putin’s war in Ukraine.
“As Democrats in Congress work on solutions to mitigate the impact of these rising prices, we also call on the IRS to take executive action.”
Gallego went on to say that the idea of increasing the mileage allowance to ease the financial burden on small businesses came after speaking to a driver while on vacation in Florida. The driver told Gallego that the mileage deduction would not offset his costs with higher gasoline prices.
Increases in the mileage allowance can be implemented without instructions from Congress
Mileage increases by the IRS would not require legislation and guidelines from Congress, as the agency sets mileage deductions every year.
A ‘common sense’ step
In a statement, Davids said, “This is a sensible step that the IRS has taken before in extraordinary times to reduce costs for those entrepreneurs, and I think it’s pretty clear that we’re in extraordinary times.”
The calls are made as US gas prices continue to break records and the national average for a gallon of gasoline has risen 10 cents to $4.58. In California, average costs at the pump exceeded $6 a gallon for the first time, according to data from the American Automobile Association.
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