Why is there only 1 IRS milage deduction rate?
I know there are exceptions like charity work etc, but in general, why is there only one IRS mileage deduction rate? I propose that there should be two rates. One for jobs where the miles are primarily associated with interstate miles like traveling to a business trip for work (where there are generally no traffic lights etc), and another higher rate for jobs generally associated with city/urban miles like DoorDash/UberEats delivery drivers.
A quick and dirty way to calculate this would be to use the average spread between automobiles city vs highway MPG posted on the sticker of every car being sold. In reality, it should probably be slightly higher for delivery drivers since they are often regularly turning off / starting their car back up, which does more wear than any other type of automobile usage. It may be easier and more accurate to have a standard rate, then a higher rate that is reserved for jobs primarily involved in city mileage like uber / doordash drivers.
If you wanted to get more accuarte and complicated, apps that track mileage and the core apps for delivery drivers can output the number of highway miles vs city miles at the end of the year for tax purposes.
Also, completely unrelated to taxes, I've been testing out variouis gig jobs (and reading through their user groups on fb/reddit etc) from large tech companies in my spare time and there seems to be very large opportunities for improving their operations.
Example: with food delivery, most chains know how long an order will take based on their order volume. When you call a pizza place, they can estimate roughly how long your order will take. An algoritym should easily be able to estimate this, and maybe it already does, but it doesnt seem like that information is being shared with the 3rd party delivery apps. This means that as soon as the order gets put through, there is no feedback from the restarant about estimated wait time, and they send a delivery driver to go stand around in the store for 30-45 minutes. This deliver driver is not being paid by the hour, they get paid by completing orders. Even with single owner restaurants (vs big chains like Taco Bell), this seems like a feature that should be offered by their POS (point of sale) system.
Also, there doesn't seem to be any mechanism for these large corporations to recieve important feedback from their customer service departments.
Doordash specifically has a major glitch that makes it illegal in most states, and it has been there for months. States require that apps allow operation by a single swipe or tap. If you use DoorDash's feature to drive to a hotspot after an order is completed, or if you use their feature to drive to a new zone (so you can get orders), once you recieve an order and accept it, when you go back to the GPS, it still takes you to the random point it used to take you to the hot spot, not the location of the restaurant. This often means you end up 30+ minutes out of your way while the order is getting cold for the customer. Even if you know this and remember it, to get around it, you have to tap/swipe 4-5 times at minimum (while driving) to get the GPS to actually send you to the correct location to pick up the order you just accepted. This glitch that makes their app illegal in most states has been there through numerous app updates etc, so its not some glitch on the users end.
It seems like Uber has a huge opportunity to begin competing with short haul airline flights, but the infrastrusture within their app doesnt exist yet. Given that an uber can pick you up anywhere, exactly when you need it, vs an airplane flight has to be from the nearest airport, on their schedule, and given that the seats in the back of almost every car in america are nicer than even business class and first class seats, Uber should in theory be able to compete with short haul airline flights. In addition you start from and end up in your exact desired location, vs with airlines, you already have to take an uber from your home or business to the airport, then from the destination airport to the hotel etc. The issue is that these types of trips are a very bad deal for the drivers. There is no way to schedule a gig back to your city after you drive someone to another city, and often you are not even allowed to accept orders in the new city because it is in a different corporate region. In order to accept an gig like this, the driver basically has to do double the mileage with no extra pay to get home. If companies like Uber built infrastructure in their apps to address this, they could put a huge dent in short haul airline flights.
Bro why is there an IRS
Is this purely a joke or also a subtle reference to Trump saying we could replace all tax revenue with tarrifs?
Purely a joke, much like taxes. That said, as irrational and likely impossible to implement Trump's idea is, in theory I wouldn't be against some proposal that eliminated taxes in exchange for consumption-based fees. The latter is at least optional.
Based on the most helpful WSO content, the IRS mileage deduction rate is designed to be a standardized, simplified method for taxpayers to calculate vehicle-related expenses for business purposes. The single rate reflects an average cost of operating a vehicle, including fuel, maintenance, depreciation, and insurance, across a wide range of scenarios. While your proposal for differentiated rates based on city versus highway driving is logical and addresses real-world variances in vehicle wear and tear, implementing such a system would introduce significant complexity to tax administration.
Here are some key considerations:
Simplicity vs. Accuracy: The IRS prioritizes simplicity in its mileage deduction rate to make it accessible and easy to use for taxpayers. Introducing multiple rates based on driving conditions (e.g., city vs. highway) or job types would require additional tracking, documentation, and verification, which could complicate tax filings and increase the risk of errors or fraud.
Tracking Challenges: While apps and technology could theoretically track city vs. highway miles, not all taxpayers use such tools. Requiring this level of detail would disproportionately burden individuals who lack access to advanced tracking systems or the technical know-how to use them.
Equity Across Taxpayers: A single rate ensures uniformity and fairness across all taxpayers, regardless of their specific driving patterns. Differentiated rates might create perceived inequities or disputes over classification, especially for mixed-use driving scenarios.
Wear and Tear Considerations: While city driving does cause more wear and tear due to frequent stops, idling, and restarts, the current rate is an average that accounts for a mix of driving conditions. Adjusting for specific scenarios might require constant updates to reflect changing fuel prices, vehicle technologies, and driving patterns.
Your observations about gig economy inefficiencies, such as delivery driver wait times and app glitches, highlight broader operational challenges within these platforms. Addressing these issues would require companies like DoorDash and Uber to invest in better integration with restaurant POS systems, improved app functionality, and infrastructure to support long-haul trips or intercity rides. These changes could enhance driver satisfaction and efficiency, potentially making these platforms more competitive in new markets like short-haul travel.
While your ideas are innovative and address real-world inefficiencies, implementing them would require balancing practicality, cost, and the broader implications for both taxpayers and gig economy platforms.
Sources: The insanity of the US tax code: Bad Laws and Predictable Consequences, TRUMP TAX PLAN, TRUMP TAX PLAN, The TAX CUT - How you plan to spent it
Re: Uber, I believe there is a system to migrate drivers towards their home area using their average ride direction? Many drivers seem happy when I order long trips, plus it’s freeway miles with lower cognitive load, guaranteed zero search costs, etc.
In my opinion, the actual issue with uber is that scheduling rides is such a ghetto and useless experience. The driver can show up 15 minutes early, claim you didn’t show up, charge you, and leave. Even for a 5 am flight, a ride back after an appointment, etc.
Then you have to order an unscheduled ride anyways.
Imagine trying to capture a black car VIP personal driver/valet market, while offering such an inconvenient experience where you can’t schedule a “scheduled” thing. Half the time they somehow fuck with the previously locked-in price, and sometimes they “can’t find a driver” but of course other uber rides are occurring in that area for surge pricing. It’s really a soulless robotic method of running a business. I hope everyone charges back every 10th UberEats order.
Re: the single swipe or tap for doordash, that’s a good point but couldn’t they claim that’s a bug?
What you are referring to is called "directional" or something like that, but the longer the distance, the harder it is to string together enough rides to get home. The bigger issue however is that often the destination city is outside of your "zone" so you can't get any jobs at all, much less ones that take you home. I'm mostly basing this on what I see drivers posting in their fb / reddit groups. Longer rides being a bad deal is a very common topic, but obviously some people take them.
"you can’t schedule a “scheduled” thing." - This reminds me of the Seinfeld car rental scene 😂
To your point, it almost seems like a completely different platform, or at least a completely different mode within Uber, is necessarily to make long hauls work. For example: reservations would have to actually be real.
Doordash could claim it's a bug, and it is. The issue is that it's likely a simple fix and they have left it there for months despite being told about it countless times.
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