Skip to Content
Streetsblog USA home
Streetsblog USA home
Log In
Tax Policy

Inside the Bush Tax Cut Compromise is a Gift for Transit Riders

No matter how you feel about extending the Bush tax cuts for the wealthy, there’s one reason to hope it passes: it includes an extension of the transit benefit.

Transit riders' tax benefits hinge on Congress ironing out an agreement on tax cuts for the rich. Image: ##http://woldcnews.com/DCnews/woldcnews/expanded-cell-phone-coverage-coming-to-metrorail/##WOL##
Transit riders' tax benefits hinge on Congress ironing out an agreement on tax cuts for the rich. Image: ##http://woldcnews.com/DCnews/woldcnews/expanded-cell-phone-coverage-coming-to-metrorail/##WOL##

The tax-free benefit for transit used to be capped at $120 a month, but the stimulus raised it to $230, on par with driving benefits.

Ya-Ting Liu has been leading the Tri-State Transportation Campaign’s push to extend the benefit. “In addition to this very political debate over tax cuts for the wealthy, there are all these other things are wrapped up in it,” said Liu, “including unemployment benefits, and the tax credit for the working poor, all these other things. It’s become this hodge-podge packet of provisions, some of which we really like.”

If you’ve been following the political tug-of-war over the tax cut provisions, you know it’s been contentious, but the transit benefit could pass quietly as part of the package. Liu says, as far as she’s heard, there are no efforts to strip it out of the larger bill.

The Senate voted overwhelming last night to invoke cloture, ending debate on the bill. We’re still waiting for a final vote.

The real test will come in the House, where Democrats have publicly revolted against President’s compromise on tax cuts with the GOP. The House could vote on the bill as early as Thursday.

Stay in touch

Sign up for our free newsletter

More from Streetsblog USA

Monday’s Headlines Bring Another Setback

The Biden administration's new rule requiring states to report their greenhouse gas emissions from transportation was dealt another blow when the Senate voted to repeal it.

April 15, 2024

‘The Bike Is the Cure’: Meet New Congressional Bike Caucus Chair Mike Thompson

Meet the incoming co-chair of the congressional bike caucus — and learn more about how he's getting other legislators riding.

April 15, 2024

Calif. High-Speed Rail Takes a Step Towards Acquiring Trains

The contract calls for two prototype trainsets for testing to be delivered by 2028, and four trainsets to be used on the "early operating segment" between Merced and Bakersfield, ready between 2030 and 2033.

April 12, 2024

Friday’s Headlines Are Still Unsafe

Traffic deaths are declining for those ensconced in thousands of pounds of steel. For the rest of us, not so much.

April 12, 2024

Measure HLA Is Now Officially Law for L.A. City

Check the city maps to find what bus, bike, and walk improvements are coming to streets in your neighborhood.

April 12, 2024
See all posts