TOPICS
TOPICS
Union calls for midyear adjustment of mileage reimbursement rate
The National Treasury Employees Union has asked the Internal Revenue Service to make a midyear adjustment to the federal government's mileage reimbursement limit, already at a record high.
The mileage reimbursement rate, currently at 50.5 cents per mile, is used to calculate the deductible costs of operating a personal vehicle for business purposes. The IRS determines, usually annually, the maximum rate allowed as a business deduction. The General Services Administration sets the reimbursement rate for federal employees, which cannot exceed the IRS limit.
In a letter to IRS Commissioner Douglas Shulman, NTEU President Colleen Kelley said current record-high gas prices are "placing an especially heavy burden on those who must travel to perform their work duties." While not requesting a specific reimbursement rate, she asked that a midyear adjustment be made so the rate "accurately reflects the actual cost traveling employees pay."
Kelley noted that legislation (S. 3032) is pending in the Senate that would raise the rate to 70 cents per mile for both private sector and federal employees. The bill was introduced by Sen. Charles Schumer, D-N.Y., in May and awaits consideration by the Senate Finance Committee.
Action by the IRS, however, "would provide much more timely relief than depending on the slow pace of the legislative process," Kelley wrote.
NTEU has called for midyear adjustments of reimbursement rates each of the past three years. While such adjustments are unusual, the IRS did respond to high gas prices by changing the rate in September 2005 from 40.5 cents a mile to 48.5.
A GSA spokeswoman said the agency would likely reevaluate the reimbursement rate for federal employees if the IRS raised the deductible limit. The IRS did not respond to a request for comment.
COMMENTS
- I have no idea what the point of Dan's last idea was. Foreign cars are more fuel-efficient on average first of all; so they in turn do more to bring down gas prices than most US cars do. But even if that were not the case, what incentive do you get by encouraging to people to by US made cars-NONE. It doesn't help th enation or gas prices in any way. Rather, the more cars people buy (regardless of country of production), it's a good indicator for our economy and helps our GDP. Aphil Posted June 18, 2008 9:01 AM
- Have to agree with you on the cars not made in the US. My Chevy was made in Mexico, and my Toyota was made in Kentucky. I should get only half on the Chevy. Mike Posted June 18, 2008 8:24 AM
- GSA has not changed or it appears even looked at the High Mileage drivers 28.5 cents per mile (when a GOV vehicle is avaible if asked for)in a number of years. I contacted Congressman Marion Berry's office around January 28, 2008, after repeated attempts to get some answers from GSA. I found that not many GSA folks knew there was a 28.5 cents slot. I got the normal letter from Berrys off which leads me to think he never his-self seen the request for his assistance. My agency sent out a FSIS Notice dated 5/6/08 that effective after March 19, 2008 the milage rate would still be 28.5 cents for High Mileage drivers where a GOV was available. Looks like the GSA is trying to make sure we who needs the freedom to meet provate needs to ahd from work are choked down. I belonged to AFGE for over 25 years. The National Treasury Employees Union and Federal Fire Fighters Union has done more for the federal work force but as of yet have they tackeled this problem. We may be the only agency with the 28.5 cents? I would like to know what options are available if any in getting a more across the board fairness. Thanks Richard Bishop Posted June 18, 2008 5:22 AM
