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B-197051 1 (1980-01-30)

handle is hein.gao/gaobabjrc0001 and id is 1 raw text is: 



   *,           COMPTROLLER GENERAL OF THE UNITED STATES
                        WASHINGTON. D.C. 0543a



B-197051                            January 30, 1980


The Honorable Jack Brooks
Chairman, Committee on
  Government Operations   H5.O 'm-
House of Representatives

Dear Mr. Chairman:

     This is in ,esponse to your letter of November 26, 1979,
requesting our comments on H.R. 5722, a bill to amend the
Internal Revenue Code of 19547to provide that the mileage
allowance used for Federal employees shall also be used for
determining the mileage allowance deduction for trade or
business expenses (section 1), and to amend title 5 of the
United States Code to revise certain provisions relating
to mileage and per diem expenses of Federal employees (sec-
tion 2).

     Regarding section 1, we understand that the Internal A-Coo'o
Revenue Service has administratively adopted the use of the
Federal employee mileage allowance for trade and business
expense deductions. The Federal employee allowance is de-
termined by the General Services Administration (GSA). Ac-
cordingly, we believe section 1 primarily concerns those
two agencies and have no comments on it.

     We support enactment of section 2 of the bill because
it would make the process for setting travel rates more
responsive to changes in travel costs, and in turn help
remedy inequities faced by employees who must travel. The
existing law specifies maximum rates that may be paid for
per diem (section 5702) and mileage (section 5704). These
sections must of course be amended periodically to recog-
nize inflation when the maximum authorizations become in-
adequate to cover travel costs.

     H.R. 5722 would delete specified rates in the law and
allow them to be set by GSA through an administrative process
similar to what the State Department does in setting per diem
rates for foreign countries and the Defense Department does
for United States areas outside the conterminous 48 States.
GSA would annually determine travel expenses and recomimend




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