As TransitCenter and the Frontier Group reported last week, the federal government pays a huge $7.3 billion subsidy to people who drive to work by making commuter parking expenses tax exempt. There are countless reasons for Congress to scrap this poorly-conceived, congestion-inducing subsidy. While policymakers consider the big picture, they also ought to examine how their own parking benefits are administered.
Here’s the short version: Congress is breaking its own law, and it’s shorting the Treasury hundreds of thousands of dollars per year, by providing free parking far in excess of the allowable limits.
USC 26 Section 132f of the tax code allows employers to provide each worker with up to $250 in free parking per month tax-free, which can add up to $3,000 in tax-free perks per employee each year. That’s a pretty big amount to pay people for exacerbating congestion, but the parking at the U.S. Capitol is worth significantly more than that.
It’s hard to know exactly how many free parking spaces we’re talking about. The Architect of the Capitol and relevant committees don’t like to talk about it, but Lydia DePillis reported in the Washington City Paper a few years ago that a plan for the southern part of the Capitol complex completed in 2005 shows that the House office buildings alone have 5,772 parking spaces assigned to them.