STATEMENTS: Gallego and Davids Applaud the IRS for Increasing the 2022 Optional Standard Mileage Rate Deduction
WASHINGTON, DC – Rep. Ruben Gallego (AZ-07) and Rep. Sharice Davids (KS-03) today cheered Internal Revenue Service Commissioner Charles Rettig for adjusting the 2022 optional standard mileage rate used to deduct the cost of operating an automobile for business purposes to 62.5 cents a mile, up from 58.5 cents. This decision comes weeks after the lawmakers sent a letter to the revenue service urging the IRS to act quickly to increase the 2022 rates.
Click here to read the letter.
Statement from Rep. Ruben Gallego:
“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 hardworking Americans first.”
Statement from Rep. Sharice Davids:
“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.”
The adjustment follows the revenue service’s December 2021 issuance of the 2022 optional standard mileage rate. In the proceeding months, the average cost of a gallon of gas has increased by nearly a dollar per gallon, and today’s announcement seeks to assist taxpayers in offsetting the rise in gas prices.
The revenue service has made similar adjustments in the past. As Rep. Gallego and Davids' 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. As such, we believe it is appropriate for the IRS to move to ensure that its standard mileage rate deduction grows proportionately to increases in prices, and that the adjustment be made retroactive to March 1.”
Read More: Democrats Urge IRS to Boost Drivers’ 58.5-Cent Mileage Deduction (Bloomberg)
The letter builds on previous efforts by Rep. Gallego to provide hardworking Arizonans needed relief at the pump to combat the rise in gas prices. In April, Rep. Gallego called on Arizona Governor Doug Ducey to use a portion of the state’s American Rescue Plan funds to give Arizonans direct relief from rising gas prices.