Blizzard, no offense intended here Man but how do you ADD a Deduction. $1 minus .50 = .50. You ran a Load for 50 cents per mile. Just trying to understand how you see you got paid One Dollar per Mile. No comprendo aqui.
It is like OVM says; It's a deduction you get for every mile you drive. I was just joking about that part (I'm not sure who all got the joke though) but the lower rates that are coming because of the low price of fuel right now is no joke. It will give the bottom feeder drivers more wiggle room (and the bottom feeder companies will use it as an excuse to offer their bottom feeding drivers loads for under 80 cents per mile). Just like if your carrier knew your truck got 100 miles to the gallon (this is just an exaggeration) they wouldn't continue to pay you your rate. They would lower their bid rate to get more loads, because you are getting better fuel mileage, and you can now operate your business cheaper. Their 20 percent would never change no matter how low they go on a bid. Carriers always make their margins! This is a bad way to do business.
Any how, it wouldn't be worth it to drive a van without the fifty cent per mile mileage deduction. You would go broke out here. If you had to file taxes on your total income of lets say 70k, and had to pay 10k in social security and Medicare taxes, and another fifteen thousand in state and federal income tax, short term disability, unemployment taxes, and health insurance, you wouldn't make squat out here. If cargo van drivers had to pay regular taxes like everyone else, MacDonald's workers would be earning more money than you do working only 40 hours per week, and they wouldn't have to drive on the ice. Once the minimum wage reaches 15 dollars per hour, them checkers at Wal-Mart will be making more money than us current and former cargo van drivers. And the kicker is that they won't have to fork over thousands of dollars in start-up capital to do so.