Letter to Hon. Charles P. Rettig, Commissioner Internal Revenue Service (IRS) - Davids, Gallego Call on IRS to Increase Gas Mileage Deductions for Small Businesses

Letter

Today, Representative Sharice Davids and Representative Ruben Gallego (AZ-07) called on Internal Revenue Service (IRS) Commissioner Charles Rettig to increase the mileage rate deduction used by small business owners who operate a vehicle for their business. Pointing to the recent rise in gas prices, the lawmakers urge Commissioner Rettig to increase the standard mileage deduction rate and give small business owners a break from rising costs.

Click here to read a copy of the letter.

"Kansans are getting squeezed by rising gas prices--that includes small business owners. This is another commonsense step we can take to keep money in people's pockets amid extraordinary circumstances," said Davids. "We're still working to fight long-term inflation and find energy solutions, but the fact is, Kansans need relief from rising prices right now."

"Small business owners and rideshare drivers should not bear the brunt of rising gas prices caused by oil company greed and Putin's war in Ukraine," said Rep. Ruben Gallego. "While Democrats in Congress work on solutions to ease the impact of these rising prices, we are also calling on the IRS to take executive action. We are not reinventing the wheel with this request--the IRS has adjusted the rate in the past. It is our hope they do right by small businesses and make the change now."

In December 2021, the IRS issued the 2022 optional standard mileage rate. Since then, the average cost of a gallon of gas has increased by nearly a dollar per gallon. In their letter, Davids and Gallego ask the IRS to adjust the rate at an amount proportional to the gas price increase.

The revenue service has made similar adjustments in the past. The letter reads: "As you know, there is ample historical precedent for the IRS to increase the standard mileage rate in response to high gas prices. In June 2011, the IRS increased the standard mileage rate by 4.5 cents per mile for miles driven after July 1, 2011 and stated that it was doing so, "in recognition of recent gasoline price increases.' In 2022, consumers and businesses have seen gas prices grow even higher than they did in 2011 when the IRS last took this action."

Davids has been focused on lowering costs for Kansans, including gas prices. She has repeatedly urged the President and Congressional leadership to move forward on long-term energy and inflation solutions, including fixing our supply chains, making more goods in America, and investing in our clean energy economy.

She urged her colleagues to investigate potential price gouging by oil and gas companies, who have made record profits despite rising gas prices. Read more in KSHB ahead of today's hearing.
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.
After voting for bipartisan sanctions against Russian oil, she called on President Biden to take immediate action to protect American consumers from uncertainty and rising prices during these extraordinary circumstances, including by temporarily suspending the federal gas tax.
Following Davids' calls to take action on rising gas prices last fall, President Biden released 50 million barrels of oil from the Strategic Petroleum Reserve. He has since authorized the largest release in history, providing a bridge to increased supply.
Davids remains committed to long-term energy and inflation solutions, urging the President to protect Kansans from being used for leverage by dictators in the future by investing in renewable and alternative fuels--a position shared by former Navy Secretary Ray Mabus.
She met with the President and New Democrat Coalition leaders last month to continue pushing for bipartisan legislation to fix our supply chains and make more goods in America, not China.

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.