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Union, transit groups call for extension of commuter benefits
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12/07/11 06:33 PM ET
Congress should pass an extension of benefits for mass transit use, a Washington, D.C.-based union and a group that encourages public transportation are arguing.
The National Treasury Employees Union called Wednesday for the House and Senate to pass the Commuter Benefits Equity Act (H.R. 2412, S.R. 1034), which would extend a $230 tax credit for commuters who use public transportation. If the bill is not passed, the credit would be reduced to $130 on Jan. 1.
NTEU President Colleen Kelly said the drop would make a difference in the wallets of transit riders.
“The mass transit commuter benefit provides much needed relief in the form of reduced commuting costs for many working people, including tens of thousands of federal employees that rely on public transportation to get to and from work,” Kelley wrote in a letter to lawmakers Thursday.
“Many of these employees, already subject to a two-year pay freeze, are struggling in the current economic climate, and a reduction in these benefits would impose a severe financial burden on them,” she continued.
Kelly added that “retaining the current monthly commuter transit subsidy also encourages greater transit ridership, which helps lessen congestion on roadways, reduces pollution and conserves energy.
“Workers using environmentally helpful mass transit should not be provided a lesser benefit than those driving and parking personal vehicles,” she said.
The American Public Transportation Association has also argued for an extension of the tax, saying failure to do so would create "a financial bias in the federal tax code against public transit use.
“If the transit commuter benefit is allowed to expire, it will serve as a tax increase on transit riders and their employers,” APTA President Michael Melaniphy said this week in a statement. "It will amount to allowing payroll taxes to increase on both employees and the employers who offer the benefits. People should have reasonable transportation choices and federal tax law should maintain a level playing field for those choices.”
The National Treasury Employees Union called Wednesday for the House and Senate to pass the Commuter Benefits Equity Act (H.R. 2412, S.R. 1034), which would extend a $230 tax credit for commuters who use public transportation. If the bill is not passed, the credit would be reduced to $130 on Jan. 1.
NTEU President Colleen Kelly said the drop would make a difference in the wallets of transit riders.
“The mass transit commuter benefit provides much needed relief in the form of reduced commuting costs for many working people, including tens of thousands of federal employees that rely on public transportation to get to and from work,” Kelley wrote in a letter to lawmakers Thursday.
Kelly added that “retaining the current monthly commuter transit subsidy also encourages greater transit ridership, which helps lessen congestion on roadways, reduces pollution and conserves energy.
“Workers using environmentally helpful mass transit should not be provided a lesser benefit than those driving and parking personal vehicles,” she said.
The American Public Transportation Association has also argued for an extension of the tax, saying failure to do so would create "a financial bias in the federal tax code against public transit use.
“If the transit commuter benefit is allowed to expire, it will serve as a tax increase on transit riders and their employers,” APTA President Michael Melaniphy said this week in a statement. "It will amount to allowing payroll taxes to increase on both employees and the employers who offer the benefits. People should have reasonable transportation choices and federal tax law should maintain a level playing field for those choices.”
