Wednesday, February 14, 2007

"By the Way" Tax Increases for Wisconsin Residents

In addition to DarthDoyle's massive Tax And Spend budget proposals, there are a few additional ramifications which Darth didn't mention.

Here are a couple, which (admittedly) are minor--but actually cost money.

If you use your car for business purposes, your employer may reimburse you for mileage. The current Federal rate is $0.41/mile--the same as the deduction a self-employed person may take for business miles.

However, that rate does NOT increase because the State of Wisconsin has increased the cost of driving your car by:

1) Increasing gasoline taxes;
2) Increasing registration fees;
3) Increasing drivers' license fees; or
4) Requiring Corn-a-Hole (which increases the cost of fuel AND decreases mileage.)

I know that's a minor point.

It doesn't apply, of course, if your car is State-provided.

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