The deal made last January to avert the “fiscal cliff” included a provision that eventually brought the monthly transit commuter benefit up from $125 to $245 to match the pre-tax benefit for parking. This was a big win for transit riders, albeit a temporary one: the pre-tax benefit for transit will fall back to $125 ($130 with inflation) per month on January 1 if Congress doesn’t extend (or better, make permanent) the parity that straphangers currently enjoy.
Today, New York Senator Chuck Schumer held a press conference at Grand Central Terminal to highlight the impending expiration date of the transit commuter benefit. Highlighting the Commuter Benefits Equity Act of 2013, legislation he introduced this past June to extend the tax break, the Senator noted that he will continue to push for parity between the parking and transit benefits.
According to Sen. Schumer, more than 700,000 people receive the benefit in the tri-state region, which saves employers and commuters $330 million that can be reinvested back into the economy.
Acknowledging that such an extension has been approved the previous three years, the Senator noted the “messy” situation in Congress amidst uncertainty as to whether the commuter tax benefit would be extended another year. He vowed to not budge on the inclusion of this extender as part of a series of other tax extender proposals being considered by Congress. Business, labor and transit groups, such as Tri-State Transportation Campaign participated in today’s press event.
Allowing the pre-tax benefit for transit to fall back to $125 — roughly half of what drivers are allowed — is unfair, and essentially provides an incentive to drive.
It’s also illogical. Equalizing transit and parking benefits, according to Rep. Michael Grimm (N.Y.), is “not very controversial,” has “a ton of bipartisan support,” and is “basically as close to innocuous as you can get.” Grimm, along with Reps. Peter King (N.Y.) Earl Blumenauer (Ore.) and Jim McGovern (Mass.) are also working to find a “legislative vehicle to hitch a ride on.”
Noticeably quiet about the extension are the New Jersey and Connecticut delegations — on both sides of the aisle. Given the transit dependency of the tri-state region, we need strong transit champions in Congress to make sure this extension is passed, and hopefully, made permanent.
The transit industry is making a big mistake hoping that it can maintain parity with parking at $245. A much better strategy would be to argue that parity (a level playing field on modal choice) is the most important issue and seek a transit benefit and a parking benefit both at say $180. I suspect this position would also cost less money in forgone tax revenue to the federal government than a $130 and $245 scenario.
There are only about 6 or 7 cities in the U.S. where a transit commuter can spend over $130 a month on transit fares so it is hard to build a coalition to push the amount higher in Congress.
APTA are you listening?
http://www.change.org/petitions/congress-give-transit-and-vanpool-commuters-equal-benefits-as-drivers
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