Pre-tax transit benefit rolling back in 2012 - Metropolitan Planning Council

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Pre-tax transit benefit rolling back in 2012

Photo courtesy of John Walker

Metra riders will face increased commuting costs in 2012 as a result of Congress rolling back the pre-tax transit benefit.

According to the Association for Commuter Transportation (ACT), while the U.S. Senate agreed to a two-month extension of the payroll tax holiday over the weekend, that extension did not include an extension of the transit benefit parity. Unless something unexpected happens before year's end, on Jan. 1, 2012, the maximum amount commuters can set aside pre-tax to cover transit expenses each month will revert back to $125 (the 2009 level, adjusted for inflation), from its current level of $230/month. However, the maximum pre-tax set-aside for parking expenses will increase to $240/month (up from the current level of $230). 

In an earlier blog post, I wrote about how this transit benefit roll-back will affect Chicago-area commuters. ACT reports that Senate champions are hopeful to re-establish parity between the parking and transit benefits in early 2012. They noted that grassroots organizing efforts, such as www.commuterbenefitsworkforus.com, and more locally, an online advocacy tool provided by Chicagoland's new voice for transit riders Riders for Better Transit, resulted in tens of thousands of letters pouring in, helping achieve bipartisan support from 22 Senators and 50 members of Congress.

We hope the visibility this effort has raised will help increase the numbers of Americans who use the transit benefit. That said, we know our partners will continue to work toward parking and transit benefits parity in 2012, so we encourage you to keep up with the latest on this issue on our web site and theirs in the coming months. 

Comments

  1. 1. GO'G from MA on December 22, 2011

    Received this from My Senator Brown, nothing from Kerry or Rep Neal.


    From: "Senator Scott P. Brown"
    Date: December 20, 2011 5:09:35 PM EST
    To: George.ogrady@comcast.net
    Subject: Thank you for contacting the Office of Senator Scott P. Brown
    Dear Mr. O'grady,

    Thank you for contacting me with your concerns about the Commuter Benefits Equity Act (S. 1034). As always, I value your input and appreciate hearing from you.

    On May 19, 2011, Senator Charles Schumer (D-NY) introduced the Commuter Benefits Equity Act. This bill would keep the employee pre-tax benefits for mass transit and parking at equal levels. Transit and parking benefits are currently adjusted to $230 each per month, a parity achieved after the stimulus law raised the former $120 for mass transit to the current level.

    I recognize the importance of these benefits. Over 20,000 Massachusetts commuters would be affected by a mass transit benefit decrease, ranking the Commonwealth among the top three states to be the most impacted. In this difficult economy, we should do everything we can to prevent individuals in Massachusetts and across the country from experiencing a tax increase. It is for these reasons that I have joined my Senate colleagues in sending a letter to the Chairman and Ranking Member of the Senate Finance Committee urging them to address the parity issue before the benefit reverts to its lower level.

    Currently, S. 1034 is under review by the Senate Committee on Finance. Should the Senate consider this or related legislation, I will review it with your thoughts in mind.

    Again, thank you for sharing your views with me. Should you have any additional questions or comments, please feel free to contact me or visit my website at www.scottbrown.senate.gov.


    Sincerely,
    Scott P. Brown
    United States Senator

  2. 2. chris mylonas from new york on December 28, 2011

    please dont take this benefit from us!!!!! extend it one more year!!!!

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