Transit benefit once again slated to be cut in half - tell Congress to move
Advocates want continued tax benefit parity between parking and transit
The commuter benefit is an employer provided federal tax benefit that allows working families to save money on their daily commute, saves businesses of all sizes critical dollars that can be reinvested to create new jobs, helps reduce traffic congestion, improve air quality, saves energy and enhances our national security.
Transportation is the second largest household expense for most working families. How much does the transit portion of commuter benefits help these families? Employees can save up to $1,200 annually. Any decrease in the allowable monthly benefit will result in an increased tax burden for families using the benefit.
However, without immediate Congressional action the future of the transit portion of the commuter benefit, at its current level, is in jeopardy.
In 2009 Congress wisely chose to extend to $230 per month tax benefit for transit as part of the 2010 package extending the Bush tax cuts, continuing transit parity with the $230 deduction available for parking. Before that parity was put in place, the federal government was effectively subsidizing employees who drive alone to work -- picking winners and losers rather than leveling the playing field for all travel options.
But right now, those benefits are at risk. The clock is now ticking once again, and absent Congressional action, the $230 per month benefit will revert back to $120 per month on December 31.
Last November Transportation for America -- a group that CTC partners with on federal transportation issues -- posted an action alert on the potential for millions of Americans to see the cost of their commute suddenly rise.
Congress wisely chose to extend to $230 per month tax benefit for transit as part of the 2010 package extending the Bush tax cuts.
While the monthly parking benefit cap will remain at its current $230 level, the monthly transit benefit cap is set to be cut nearly in half at the end of 2011 unless Congress acts to extend it. If you support maintaining the transit benefit at it its current level take action now.
Senator Chuck Schumer (D-NY) and Congressman Jim McGovern (D-MA) have introduced legislation to make the benefit permanent. There are nine co-sponsors on the Senate bill and 24 on the House bill, but as of this writing none of Rhode Island's Congressional Delegation have signed on as co-sponsors.
Tell your member of Congress that you support parity for all travel modes. Commuter Benefits Work For Us, an advocacy coalition supporting the Schumer-McGovern legislation, makes it easy for you to let your representatives know where you stand.
It's a matter of fairness -- and Congress needs to move.
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About the Coalition for Transportation Choices
The Coalition for Transportation Choices (CTC) calls for a 21st century transportation system that enhances our economy and provides all Rhode Islanders with healthy transportation choices.
Rhode Island's 21st century transportation system must provide all people - employees, tourists, youth, elderly, able and disabled - with safe and dependable access to their community's opportunities for work, education, services, and recreation. The system should be considerably less dependent on cars and fossil fuels as well as efficient, effective and easy to use. It should minimize impacts to land, water and air and improve the health and well-being of all Rhode Islanders. Such a system should be sustained with predictable and consistent funding for operation and future growth.
CTC's work is supported
by the Rhode Island Foundation, The Prospect Hill Foundation and Third
Sector New England's Capacity Building Fund
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Coalition For Transportation Choices Member Groups
*AARP
*Amalgamated Transit Union
*American Lung Association in RI
* Apeiron Institute for Sustainable Living
* Aquidneck Island Planning Commission
* Audubon Society of Rhode Island
* Blackstone Valley Partnership
* Blackstone Valley Tourism Council
* Blueways Alliance
* Brown emPower
* Childhood Lead Action Project
* City-State, the Urban Design Lab at RISD
* Clean Water Action
* Conservation Law Foundation
* Cornish Associates
* DOT Watch
* East Coast Greenway Alliance
* Ecolect
* Environment Council of Rhode Island
* Environmental Justice League of RI
* Farm Fresh Rhode Island
* Goodwill Industries
* Grow Smart RI
* Head of the Bay Gateway
* LISC-RI
* Narragansett Bay Estuary Program
* Opportunities Unlimited, Inc.
* Pawtucket Foundation
* Providence Warwick Convention & Visitors Bureau
* The Providential Gardener
* Recycle-A-Bike
* RI Association of Railroad Passengers
* Rhode Island Bicycle Coalition
* RICOSH
* RI Consulting Engineers (RICE)
* RI Interfaith Power and Light
* RI Land Trust Council
* RI State Rehabilitation Council
* Rhode Island Student Climate Coalition
* Save The Bay
* SEIU, District 1199
* Sierra Club
* U.S. Open Cycling
* Working Rhode Island
* Youth in Action |
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