Archives
Categories

Updated: Senate Votes to Cancel “Transit Tax Hike”

Say NO to the Transit Tax Hike
Visit tstc.org/notransittax/ or click here to take action.

[Update: The package passed the Senate, 81-19, with the transit benefit provision intact.]

The U.S. Senate is likely to pass today a tax package (the Bush-tax-cut “compromise package”) which includes cancellation of the federal “transit tax hike and would keep payroll tax deductions for transit and parking equal at $230/month. If Congress does not take action by the end of the year, the transit benefit will be cut in half to $120/month, while the driving benefit will stay the same.

The legislation currently on the table would keep the maximum transit deduction at $230/month for another year, allowing transit commuters to rest easy. But as TSTC federal advocate Ya-Ting Liu told Transportation Nation today, it’s not a done deal yet, and long-term reform will still be needed:

After the Senate vote, the tax package compromise will be taken up by the House. Should it pass there, the House and Senate would need to come up with a reconciled bill and then pass that before the end of the year.

Liu said the yearly suspense over the $230 benefit for transit riders could be avoided if the provision were to be written into the tax code, as it has been for drivers.

“The underlying issue is parity between transit and parking,” she said. “Right now, this is a permanent benefit that only drivers enjoy.”

Readers can e-mail their federal representatives at www.tstc.org/notransittax/ to tell them that any tax deal must maintain fairness between the transit and parking benefits.

Share This Post on Social
Subscribe
Notify of
guest

3 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
trackback

[…] This post was mentioned on Twitter by Leo J. Vidal, JD CPA, Bayonne CommunityAL. Bayonne CommunityAL said: Senate Set to Cancel “Transit Tax Hike” http://j.mp/i4FCHR […]

Josef Szende
Josef Szende
13 years ago

Interesting. As much as I want everyone to vote with a transit lens I can’t honestly believe that they do. Two interesting “No” votes from the region:

K. Gillibrand D-NY
F. Lautenberg D-NJ

Probably these two would be the first to vote for the transit tax break if it were put up for a vote on its own, right?

trackback

[…] successfully staved off the expiration of benefit parity last year, extending it through 2011. In May, Senator Charles […]

3
0
Would love your thoughts, please comment.x
()
x