Davids Applauds Gas Mileage Tax Break for Small Businesses

Statement

Following Representative Sharice Davids' and Representative Ruben Gallego's (AZ-07) call to action, Internal Revenue Service (IRS) Commissioner Charles Rettig announced today that the IRS is increasing the mileage rate deduction for 2022. This move will help business owners who operate a vehicle--such as truckers, real estate agents, and landscaping businesses--cut their tax bills amid rising gasoline prices.

Davids applauded the move for helping small business owners manage rising gas prices, saying: "Rising gas prices mean the cost of doing business is going up, and I'm glad the IRS is heeding our call to get small business owners immediate relief. These are the common sense steps to lower costs for working people that we need to be focusing on. I will continue to push for real relief as we work towards long-term energy security and inflation solutions."

"I am elated that the IRS acted on Rep. Davids' and my call to provide certainty to gig workers, small businesses, and the self-employed. Today, they are breathing a sigh of relief. Folks who depend on mileage reimbursements to make a living need assurance their tax deduction is going to reflect the true cost of doing business - increasing the 2022 mileage rate deduction will provide that certainty and help offset rising costs for small businesses. This is how you put the needs of hard working Americans first," said Rep. Ruben Gallego.

In May, Davids and Gallego wrote to Commissioner Rettig urging the IRS to adjust the rate at an amount proportional to the gas price increase. Today, the IRS adjusted the rate to 62.5 cents per mile.

Davids has been focused on lowering costs for Kansans, including gas prices. She introduced legislation to suspend the federal gas tax through the end of the year, saving Kansans 18 cents per gallon at a time when gas prices are reaching new highs. Davids remains committed to long-term energy and inflation solutions, voting to reduce our reliance on foreign oil and urging the President to protect Kansans from being used for leverage by dictators in the future by investing in renewable and alternative fuels.

For more information on Davids' work to lower costs and reduce inflation, and for resources to find lower prices on gas, groceries, housing and more, visit davids.house.gov/lowercosts.

Source