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Commuter tax benefit may become permanent under tax plan
Why are we subsidizing anyone’s commute to work, whether they use public transportation or drive? This should be their own resposnibility.
Robert because we do either way. More lanes in highways or get them off the roads and take the train. I do not think in Maine you have a good understanding on the the transportation requirments of a major metropolitan city.
Because the break helps drive incentives for people to use their own dollars to push revenue into the fare box. Many transit agencies use the fare box to pay for operations while they use state and federal matching dollars for the capital infrastructure. The idea is to reduce the amount of fuel taxes used to augment operations.
Note that this is not a direct tax break to commuters who pay expenses out of pocket. The tax provision allows employers to provide a tax-exempt parking or transit benefits to employees up to the monthly limit. It especially important for companies operating in expensive cities like NYC and DC. Oddly enough, one of the biggest users of this tax provision is the Federal Gov’t itself, which provides commuter benefits up to the legal limit for all Federal Employees that apply for them.
It is a direct tax break. I have $70 taken from my check each month that I turn into a bus pass. My net pay decreases by $39.35. Sounds like a $30+ tax break to me. I’m not complaining though, it’s about the only tax break I receive.