Transit Groups and Riders Advocate for Reversal of Expected Tax Increase of Up to $550
WASHINGTON, Jan. 24, 2012 /PRNewswire/ – Led by the CommuterBenefitsWorkForUs.Com coalition, which includes public agencies, transit operators and private businesses, pressure has grown for Congress to quickly pass legislation that would reverse cuts to the monthly pre-tax transit benefit available to commuters who use public transportation and vanpools. Without a fix, the monthly amount that can be set aside for public transportation expenses has been reduced from $230 to $125 per month. As a result, many are projected to face an increase in annual commuting costs of up to $550 this year. At the same time, the amount that can be set aside to cover parking costs as part of a commute to work increased from $230 to $240 per month due to a cost of living adjustment.
“In this economy, it makes no sense to sock hard-working mass transit commuters with a new tax increase,” said U.S. SenatorCharles Schumer, the senior senator from the State of New York. “Congress must step up to the plate and extend the full mass transit tax benefit as part of the payroll tax cut. It’s simply not fair to squeeze middle class mass transit commuters with a more expensive commute.”
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