CONGRESS NEEDS TO HEAR FROM YOU, KEEP PRE-TAX COMMUTER BENEFITS!
Commuters across the nation rejoiced when Congress passed and the President signed legislation that amended Section 132(f) of the tax code and included very welcome news for commuters by establishing permanent parity between the transit benefit and parking benefit and raising the cap on transit and vanpools benefits to $255/month, the same as parking. Parity created an additional tax savings of up to $600 for many commuters! Parity created an additional tax savings of up to $600 in 2016 and 2017 for many commuters!
Achieving permanent parity was the primary objective of the Commuter Benefits Work For Us coalition, and we would like to extend our thanks and appreciation to all who supported our shared quest for permanent parity. This website generated more than 150,000 letters to Members of Congress, proving that your voice can make a difference with elected officials.
Now that we achieved permanent parity the work of the Commuter Benefits Work For Us coalition continues. It is important we keep this hard fought victory relevant as Congress reconsiders the entirety of Commuter Benefits as part of comprehensive tax reform.
Tax reform efforts are focused on eliminating many provisions of the tax code, including transportation fringe benefits. Early indications are that the proposed package may revoke the section of the tax code that allows for pre-tax Commuter Benefits altogether.
Please consider taking a moment to click on this link and let your representatives in Congress know that you appreciate them acting on behalf of transit commuters across the country with regard to parity, and that the continuation of pre-tax Commuter Benefits is important to you.
Maintaining pre-tax Commuter Benefits is important for all commuters as well as for supporting the infrastructure of our public transportation system.
Whats At Stake?
More Congestion for All – If the transit benefit is eliminated, more commuters exchange their bus and train tickets for their car keys; this means more people on the road and more congestion. Greater congestion has all sorts of impacts including less productivity out of employees, greater costs to ship and receive products, and a tardy workforce.
Higher Taxes – No longer will commuters receive parking or transit benefits on a pre-tax basis, meaning more taxes for those who commute by transit and vanpool – up to $1,800 a year! - And more taxes for employers.
Complex Accounting and a New Parking Tax – Elimination of the parking benefit means that employer-provided parking now must be accounted for and taxed. So all of those parking spots in your employer’s parking lot have to be assigned a value and you and fellow employees will be taxed on them.
More Parking Needs – Speaking of parking, with the cost of transit increasing by as much as 40%, more employees will drive to work, which means that many employers may have to expand parking areas or rent/lease additional parking. In urban centers, the increase demand for parking will have a ripple effect that will lead to higher parking costs.
Less Productive Workforce – More time driving, less money in their pockets, it should not come as a surprise to see a less happy and less productive workforce. Even those who were already driving will feel the impact.
About The Coalition
The purpose of the CommuterBenefitsWorkForUs.com coalition is to promote the transit portion of the Commuter Benefit is an employer-provided. It uses a Federal tax benefit that allows working families to save money on their daily commutes by paying for their transit expenses with pre-tax dollars. It helps reduce traffic congestion, improve air quality and save energy. It also saves businesses of all sizes critical dollars through a reduction in payroll taxes that are reinvested in our economy to create new jobs and retain current employees.
The coalition includes employer groups, trade associations, public agencies, transit operators, private businesses and concerned citizens working together to provide and/or support the use of commuter benefits to achieve the goals of our country and its citizens.
Over the years, the Coalition has worked with Members of Congress to create, strong bipartisan support in Congress for the Commuter Benefit. The Commuter Benefits Work For Us coalition, and our supporters, was instrumental in making this happen. The same broad coalition will once again be needed to preserve what we’ve collectively worked hard to achieve—not just parity, but the continuation of the Commuter Benefit.