Wow, if i may chime in here....
They are pre-reimbursing you for out-of-pocket expenses related to work, and I personaly find it crazy that it's taxable income!
I incur nearly $150/week in business expenses (company car among other things), and I submit receipts, and am reimbursed in it's entirety. Why is it any differant for you guys? If it becomes a standard taxation, I'de suggest re-arranging the program, so you are post-reimbursed for the expenses. (i.e. you make the purchases, sumbit receipts, and they reimburse up to the XXX dollar amount)
Sorry to hear you're getting whacked like that, especialy do to one's selfishness, I know I wish I could claim my 10,000$ in expenses a year and have some go to my IRA, not the IRS.....