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.
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.