Congress Threatens to Restore Unequal Tax Treatment between Car Drivers and Transit Users

[marmar]

from the Next American City blog:




The decision by the Congress in early 2009 to expand the credit individuals can take out on their income tax returns for the purposes of transit commuting was an important step forward in the effort to improve the federal commitment to alternative modes of transportation. Prior to that decision, while those commuting by car could take advantage of a $230 monthly tax credit on parking, transit users could only declare $120. That was blatantly unfair to public transportation riders, and the law recognized that fact by allowing them to declare as much as drivers.

Now Congressional inaction could revert that sum to the original amount, since the measure was only temporary. If no law is passed before the end of the year, transit commuters will again be treated as transportation inferiors, at least according to the Internal Revenue Service.

The tax credit allows commuters to deduct their monthly spending on transportation, up to a set limit, from their income taxes. The amount people save thus depends on their overall tax rates defined by their income brackets.

It’s worth noting who exactly will be affected by this law. Users of most intra-city transit lines would see no change, since there are few (if any) local systems with monthly passes that cost more than $120. Yet there are plenty of commuter railroads that charge more. People riding Philadelphia’s SEPTA regional rail outside of the city pay between $127 and $191 for monthly passes. On the Metro-North line that runs to Grand Central Terminal, commuters from Stamford set down $258.72 a month—and from New Haven, people pay even more: $386.12. ...........(more)

The complete piece is at: http://americancity.org/columns/entry/2737/

[dkf]

1. $386 a month for public transportation? Nuts!

[marmar]

2. For commuting from New Haven to New York City, that's still a hell of a lot cheaper.....

...... than driving.

[dkf]

3. My iPhone says that is 82 miles.

I guess there are crazy costs for crazy commutes.