Coalition urges Congress to retain transit commuter benefit

Posted on October 29, 2013

Getting America to Work (GATW), a nationwide coalition advocating for federal investment in the nation’s bus and rail transit systems, is urging members of Congress to keep public transportation affordable for 2.7 million American families by stopping scheduled cuts to the tax-free benefit for commuters using public transportation to get to work.

Current law allows workers and employers to pay up to $245 in monthly transit costs with tax-exempt dollars. This is the same maximum tax-free amount allowed for a similar benefit for those who drive to work and pay for parking. However, on Jan. 1, the transit benefit maximum is scheduled to be cut almost in half, to $125 per month, while the parking benefit will remain at a maximum of $245.

“Keeping parity between commuter benefits for transit and parking is nonpartisan, common sense policy,” said Joe Costello, executive director of the Northeastern Illinois Regional Transportation Authority and Chairman of Getting America to Work. “Transit benefits encourage more workers to use public transportation, reducing traffic congestion, the demand for gasoline and air pollution. I urge Congress to preserve transit-parking benefit parity.”

Now that the government shutdown has ended, Congress is turning its attention to a long-term budget deal. Two bills, H.R. 2288 and S. 1116, have been introduced to preserve transit parity. If these bills are not passed or included as part of a budget deal, workers who rely on public transit will have their maximum pre-tax benefits for commuting cut in half on Jan., 1, 2014.

“We must take positive action to preserve pre-tax benefits for those who rely on public transportation to get to work,” said Stephen F. Lalli, executive director of the Oklahoma Transit Association in Oklahoma City. “The scheduled $120-per-month disparity between benefits for drivers and those who use public transit is unacceptable and unfair. Congress must stop the scheduled transit benefit cut.”

View comments or post a comment on this story. (0 Comments)

More News

Fed judge orders MARTA to court over paratransit service

Ordered to appear over allegations it's violating a court order, which, among other stipulations, requires MARTA to strive for an on-time performance rate of 100%.

MBTA urged to explore cost saving actions for paratransit

Possible changes presented by MASSDOT's deputy administrator included raising fares to the maximum allowed by ADA and reducing some of The Ride’s overhead costs by partnering with taxis or other transportation companies.

MARTA to privatize paratransit operations, maintenance

MV Transportation will operate and maintain the Mobility fleet. The contract requires the company to keep its on-time performance rate at 90% percent or higher, while at the same time reducing the number of customer complaints and trip requests that are denied

Texas paratransit agency lays off 59 as company loses state contract

The State of Texas Health and Human Services Commission canceled its three-year contract with TAPS Thursday morning, stating the transit company would no longer provide services for their Medicaid Non-Emergency Medical Transportation riders.

Mobility Ventures names new VP, Government & Commercial Fleet Sales

Bill Gibson brings to Mobility Ventures more than 40 years of sales and marketing experience with an extensive, proven background in automotive fleet management operations.

See More News

Post a Comment

Post Comment

Comments (0)

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment


Work Truck Magazine

The number 1 resource for vocational truck fleets

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

LCT Magazine

Global Resource For Limousine and Bus Transportation

Please sign in or register to .    Close