- Sen. Ruben Gallego is asking the IRS to increase the business deduction for driving a car.
- Gallego pointed to high gas prices after the US-Israel war with Iran.
- Uber and DoorDash drivers often use the deduction to defray their costs.
Drivers for Uber and DoorDash need a higher tax deduction to deal with high gas prices, one US senator says in a new letter.
Democratic Sen. Ruben Gallego, who represents Arizona, called on Treasury Secretary Scott Bessent on Thursday to raise the per-mile deduction that taxpayers can take if they use a car for business purposes. The deduction, which sits at 72.5 cents per mile, is key for gig workers who use cars to make deliveries and drive passengers.
Gallego made the ask in a letter shared exclusively with Business Insider.
The letter references gas prices, which have risen to an average of nearly $4 a gallon this month. Gallego blamed "President Trump's lack of planning with regard to the impacts of the Iran war on energy prices."
"For many self-employed individuals who rely on driving, these prices are unsustainable," Gallego wrote. "Given the significant increase in gas prices, I urge the IRS to raise the standard mileage rate at a rate that proportionately reflects gas price increases."
Rising gas prices after the US and Israel began a war with Iran have been a major concern for ride-hailing and delivery gig workers. Drivers for Uber and Lyft told Business Insider that the higher prices are eating into their profits, and some said they are getting more selective about which trips they take as a result.
Some apps, including Uber and DoorDash, said this week they would start offering drivers their own incentives to offset the higher cost of gas. The benefits include both cash-back perks and some additional payouts based on miles traveled.
Gallego's letter asks Bessent to increase the mileage deduction and make it retroactive to March 1, "when the major gas price increases began."
The IRS has done it before. In 2022, after Russia's invasion of Ukraine sent gas prices higher, the IRS temporarily increased the deduction by 4 cents a mile. Gallego, then a member of the House of Representatives, and other democrats pushed for that increase.
"In 2026, gas prices have risen rapidly over a shorter length of time," Gallego wrote in Thursday's letter, referencing the 2022 increase.
Have a tip? Contact this reporter at [email protected] or via encrypted messaging app Signal at 808-854-4501. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely.
