Tax Quote of the Week
"Though tax records are generally looked upon as a nuisance, the day may come when historians will realize that tax records tell the real story behind civilized life. How people were taxed, who was taxed, and what was taxed tell more about a society than anything else."
-- Charles Adams
Outdated -- 14 Cents per Mile for Charitable Mileage
In the Deficit Reduction Act of 1984, the rate for charitable mileage was set at 14 cents per mile. Volunteers who travel and document their mileage may take a charitable deduction in that amount.
Sen. Ben Cardin (D-MD) and Cosponsor Sen. Charles Grassley (R-IA) have announced that they will support the Fair Deal for Volunteers Act of 2008 (S. 3246). This bill will permit the IRS to establish the rate for charitable mileage.
When introducing the bill, Sen. Cardin stated that in July "the revised standard mileage rate for business purposes increased from 50.5 cents per mile to 58.5 cents. For medical and moving expenses, the IRS increased the rate from 19 cents per mile to 27 cents per mile. I think the Nation's volunteers who travel on behalf of charitable organizations deserve an increase in their mileage rate too."
Sen. Grassley supported the legislation and noted that the bill will "encourage volunteering" and permit "charities to reimburse volunteers at the same rate as business expenses."
Sen. Cardin explained the importance of the increased charitable rate for the Meals on Wheels Program in Maryland. With a 20% increase in fuel and food prices, many of the Maryland Meals on Wheels Programs have lost volunteers and faced reduction in service to "over 3,100 elderly, disabled, frail, and at-risk Marylanders."
Editor's Note: In 1984, the average price for gas was $1.21 per gallon. Today the national average is approximately $3.60 per gallon. It is long overdue to increase the very outdated 14 cents per mile charitable rate.
