Mileage rates vs the cost of gasoline
February 15th, 2008 kmr2It will probably come as little surprise to learn that gasoline prices have doubled in the last 7 years, from a US average of $1.50 per gallon in 2001 to $3.00 a gallon in 2008. In fact, you can see a 2006 congressional chart showing the growth.
Now compare that to the standard business mileage deduction. Over the same period of time, the government has increased the deductible rate for small business owners like us from $.345 to $.505, an increase of 46% (see this IRS page for the rate changes over time.)