Detroit Bureau on Twitter

Posts Tagged ‘Tax increases’

IRS Cuts Mileage Deductibility Rate.

Raising taxes during the Great Recession is latest political and economic gaff out of an "out of touch" Washington.

by on Dec.04, 2009

While the Obama administration was blaming businesses yesterday for what is in our view an understandable lack of hiring as the Great Recession drags on, the Internal Revenue Service made things worse by cutting the tax deductible mileage rates for firms.

Wathing Your Wallet!

Watching Your Wallet!

In effect, this is a tax increase for all those businesses that are struggling to stay afloat during the worst economic climate since the Great Depression. Is it really that hard to figure out why there is no hiring underway?

Beginning on January 1, 2010, the new standard mileage rates for the use of a car, van, pickup or panel truck will be:

  • 50 cents per mile for business miles driven
  • 16.5 cents per mile driven for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

The new rates for business, medical and moving purposes are lower than last year’s by roughly ten percent. The mileage rates for 2010 reflect, according to the IRS, “generally lower transportation costs compared to a year ago.”