Bill Overview
Title: Volunteer Driver Tax Appreciation Act of 2022
Description: This bill increases the mileage rate for the charitable use of an automobile (14 cents per mile) to the standard business mileage rate (58.5 cents per mile in 2022).
Sponsors: Rep. Stauber, Pete [R-MN-8]
Target Audience
Population: Volunteer drivers who use personal vehicles for charitable purposes
Estimated Size: 500000
- The bill affects volunteer drivers who use their personal vehicles for charitable purposes.
- This includes individuals who volunteer transportation for non-profits, healthcare organizations, food distribution, etc.
- Volunteer drivers are subjective to specific tax deductions which this bill addresses.
- The magnitude of impact depends on the distance driven for these charitable activities.
Reasoning
- The policy offers a notable increase in reimbursement rates for volunteer drivers, which directly impacts those who incur travel costs for charitable purposes. By aligning the rate with business mileage rates, drivers can offset their costs more effectively, potentially increasing their willingness or ability to volunteer.
- Most affected are volunteers for non-profits and healthcare who drive significantly, as they can claim higher deductions, improving their personal financial situations.
- The commonness score reflects the segmentation of volunteers who specifically drive for their charitable work. It's less common than other volunteer roles that don't involve personal vehicle use.
- Estimations consider cost per mile increases relative to the policy budget to ensure calculated distribution across up to 500,000 potential beneficiaries.
Simulated Interviews
Retired nurse (Des Moines, IA)
Age: 45 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- This policy would definitely help in covering my travel expenses. It's been hard to sustain this voluntary work with rising gas prices.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 5 |
IT professional (Austin, TX)
Age: 34 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- It's tough juggling volunteer driving with my job, but any financial help offsets my fuel costs and encourages me to continue.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Non-profit organizer (Seattle, WA)
Age: 50 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- For our organization, this policy provides a real incentive to maintain and recruit more drivers due to better compensation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 6 |
| Year 20 | 8 | 6 |
Retired teacher (Denver, CO)
Age: 60 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 4/20
Statement of Opinion:
- With the mileage rate increased, it would certainly reduce the financial burden and make it possible to volunteer more.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 5 |
Freelance artist (Los Angeles, CA)
Age: 29 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 8/20
Statement of Opinion:
- I think it's a good idea, though I don't drive as much as others, so it's not a huge change for me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 6 |
Accountant (New York, NY)
Age: 38 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 5/20
Statement of Opinion:
- Our charity's drivers often pay out of pocket. Increasing deductions could mean better retention and happier volunteers.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 6 |
Semi-retired mechanic (Detroit, MI)
Age: 55 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- Any policy that helps offset costs is a relief, especially since I want to keep doing this as long as possible.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Homemaker (Miami, FL)
Age: 42 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- It's definitely fairer to align with business rates, though I'm not driving the distances others are, so my benefit is minimal.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
City planner (Phoenix, AZ)
Age: 47 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- Aligning with business rates helps everyone; even our sporadic drivers feel more valued.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Student (Portland, OR)
Age: 21 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 7/20
Statement of Opinion:
- Any support is good, though as a student, the direct financial impact isn't huge as I don't drive much for charity.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Cost Estimates
Year 1: $222500000 (Low: $200000000, High: $250000000)
Year 2: $225000000 (Low: $202500000, High: $252500000)
Year 3: $230000000 (Low: $207500000, High: $257500000)
Year 5: $240000000 (Low: $217500000, High: $267500000)
Year 10: $275000000 (Low: $250000000, High: $300000000)
Year 100: $1000000000 (Low: $900000000, High: $1100000000)
Key Considerations
- The social return on investment may justify the tax revenue loss from increased deductible mileage rates.
- While volunteers primarily do not operate for financial incentives, this tax benefit could encourage more usage of personal vehicles for charitable purposes.