It’s time to rev up the annual fight over parity between federal transit and parking benefits for commuters. Members of Congress hope this might finally be the year to get it done.
This morning, Reps. Earl Blumenauer (D-OR) and Jim McGovern (D-MA) announced that they will, again, push to equalize the tax benefits available to transit commuters and car commuters.
Right now, people who drive to work can get up to $250 a month in tax-free earnings to pay for parking. The monthly tax-free income available to the 3 million Americans who use the transit benefit, meanwhile, is capped at $130.
With the passage of the 2009 stimulus law, parity was implemented between the parking benefit and transit benefit for a brief while. After extending the higher transit benefit a few times, however, in recent years Congress has failed to take the necessary action to do so.
At today’s press conference, Washington Metro Board Chair Tom Downs noted that Metro ridership had stagnated since transit benefits dropped. “If you’re providing a $1,500-a-year incentive to drive your car over taking transit, you’re probably going to have an impact on mode choice,” Downs said.
Increasing the transit benefit makes the law more fair, but it probably won’t make a big impact on how people get to work. Studies show that providing parking benefits always increases solo driving rates, whether or not the workplace also offers transit perks. Better to do away with all commuter benefits than to provide both [PDF]. Besides, most transit commutes cost far less than $235 a month. A monthly New York subway pass costs $112. In DC, you’d have to travel from one end of the system to the other every day during peak hours to make use of the full $235 transit benefit Blumenauer proposes.
Though Blumenauer’s plan only cuts the parking benefit by $15, it’s deficit neutral (at worst), since so many more people drive than use transit.