How High Gas Prices Affect United States Taxpayers
Higher IRS mileage rate To compensate for the increase in the cost of running a vehicle, the IRS recently approved a 20% increase in their mileage reimbursement allowance. Effective September 1, 2008 the mileage rate will increase from 40.5 cents to 48.5 cents a mile.
Higher taxes on everything Because of increased costs of production and shipping, you are basically paying slightly higher prices on almost everything you purchase. Especially when you buy any items that have a % based sales tax levied on them.
Fuel Surcharges In addition to increasing consumer prices, some businesses are passing on a fuel charge to purchasers. This charge varies depending on the type of product or service you are purchasing, but can quickly increase the amount of money you spend on necessary living expenses.
More difficult business travel Even with the IRS mileage rate increase, business related travel is going to become a lot more difficult as gas prices increase. Air plans are tightening their flights, and car rental agencies are increasing prices as well. As travel becomes more expensive, it will become harder and more expensive for any one who needs to travel for business.
Less likely to vacation According the Danita Blackwood of Small Business Television, “the number of Americans making plans to take a vacation over the next six months has fallen to a 30-year low.” As more and more taxpayers delay their travel plans, areas that depend on revenue from tourism will also feel the pain of high gas prices.
Lower suburban house prices Ten years ago it seemed like almost everyone was moving from larger cities to suburbia. However, people are beginning to move back to the cities as the cost of commuting has gotten far too expensive. As people continue to try to unload their suburban homes, the prices will continue to drop and it will get even harder for sellers.
Stress at work With nearly all businesses feeling the pressure of the economy, studies show that employees are getting worried about their job stability. This is making life more stressful for taxpayers both at home and at the office.
Harder to save or pay off debts When Americans taxpayers have extra money they generally use it to pay off debts or save up for a rainy day. However, as we continue to spend more at the pump many taxpayers are not reducing the amount they spend. Instead, they are building up more debt that will only get harder to pay off as our economy continues its march towards a recession.
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Real estate taxes for the average property owner in Indiana County will increase about $4 per month under a 2010 budget and supporting tax structure approved Wednesday by the county commissioners.
With a few adjustments, the tax structure and spending plan are the same as those that received tentative approval from the commissioners on Dec. 2.
One change to the final version is the inclusion of a $250,000 contingency fund to deal with the continuing uncertainty of state reimbursements to the county.
Real estate taxes in the county next year will increase 3.89 mills to a rate of 30.42 mills. Of that total, 5.42 mills will be applied to debt service and the remaining 25 mills will support the county’s general operating fund.
The projected total revenues in the general fund for 2010 will be $26,739,820, and when combined with $863,821 to be taken from the general fund balance, expenditures next year are projected to be $27,603,641.
Commission chairman Rodney Ruddock said the commissioners felt the quarter-million-dollar contingency fund was needed because of the continuing uncertainties of when, or how much, state money will be received.
“This is a protection for the county,” Ruddock said, adding the contingency money, if not used, can be carried forward into the following year.
Commissioner David Frick thanked county department chairmen and -women for their help in keeping county spending restrained in 2010.
“Almost all departments came in flat line (on their budget requests) from the previous year,” Frick said.
Commissioner Patricia Evanko said the county’s health insurance expenses are going up 16 percent in the new year. Under a contractual agreement, the county will pay 7 percent of the hike and the county’s employees will pick up 9 percent of the increase.
The commissioners approved a plan to boost the county’s revenue from the state. Under an agreement with the Pennsylvania Department of Corrections, the county will expand from 60 to 75 the number of cells at the new Indiana County Jail that will be available for holding state inmates.
Jail Warden Carol Hummel said the county is paid $50 per day per inmate housed for the state. The 15 additional state inmates could bring the county an extra $273,000 annually, she said.
In another step toward demolishing the old county jail, the commissioners hired Associated Thermal Services of Pittsburgh to remove asbestos from the vacant structure. The company’s bid of $6,795 was the lowest of three received for the work. The removal and disposal of asbestos will take about six days, according to Bill Sink, the county’s maintenance director.
Earthmoving work for construction of the new, longer runway at the Indiana County Jimmy Stewart Airport may also be closer to getting under way. The commissioners Wednesday accepted an aviation block grant of state and federal money totaling $6,465,475 for the next phase of the runway project.
The grant offer, however, is less than the request of $6,635,959 approved by the commissioners in October. Additionally, the grant offer is conditional on the county increasing its share of the cost for the earthmoving phase from $740,477 to $910,961.
Airport Authority chairman Ron Anderson said that increase in the local share for the earthmoving phase will not impact the local share for the entire project. It will remain at nearly $2.37 million.
Anderson also said a construction contract cannot be awarded to the low bidder — Independence Excavating Inc, of Independence, Ohio — until the grant process is completed and the grant has been officially awarded to the county.
Anderson said all that’s needed now is for the Federal Aviation Administration to complete some routine paperwork.
The Ohio contractor, Anderson said, is prepared and eager to begin the project as soon as possible.
And the first federal stimulus dollars funneled down to the county through the Community Development Block Grant program will pay for or support projects in Indiana and Coral.
The commissioners agreed to have Rhino Construction Inc., of Lower Burrell, make curbs, crosswalks and sidewalk replacements at South and Seventh streets in Indiana at a cost of nearly $24,000, and to have American Contracting, Inc., of Canfield, Ohio, replace deteriorating water pipes, valves and fire hydrants for the Coral Area Water Line Replacement Project at a cost of nearly $167,000.
The stimulus dollars through the CDBG-R program will fund all of the Indiana project and part of the Coral work.
Tax Protest – Indianapolis – July 4 2007 Part 1 of 3