How High Gas Prices Affect United States Taxpayers

Higher IRS mileage rateAs travel becomes more expensive, it will become
To compensate for the increase in the cost of runningharder and more expensive for any one who needs
a vehicle, the IRS recently approved a 20% increase into travel for business.
their mileage reimbursement allowance. EffectiveLess likely to vacation
September 1, 2008 the mileage rate will increase fromAccording the Danita Blackwood of Small Business
40.5 cents to 48.5 cents a mile.Television, "the number of Americans making plans to
Higher taxes on everythingtake a vacation over the next six months has fallen to
Because of increased costs of production anda 30-year low." As more and more taxpayers delay
shipping, you are basically paying slightly higher pricestheir travel plans, areas that depend on revenue from
on almost everything you purchase. Especially whentourism will also feel the pain of high gas prices.
you buy any items that have a % based sales taxLower suburban house prices
levied on them.Ten years ago it seemed like almost everyone was
Fuel Surchargesmoving from larger cities to suburbia. However, people
In addition to increasing consumer prices, someare beginning to move back to the cities as the cost
businesses are passing on a fuel charge toof commuting has gotten far too expensive. As people
purchasers. This charge varies depending on the typecontinue to try to unload their suburban homes, the
of product or service you are purchasing, but canprices will continue to drop and it will get even harder
quickly increase the amount of money you spend onfor sellers.
necessary living expenses.Stress at work
More difficult business travelWith nearly all businesses feeling the pressure of the
Even with the IRS mileage rate increase, businesseconomy, studies show that employees are getting
related travel is going to become a lot more difficult asworried about their job stability. This is making life more
gas prices increase. Air plans are tightening their flights,stressful for taxpayers both at home and at the office.
and car rental agencies are increasing prices as well.