A Bigger Transit Benefit Is No Match for America’s Parking Tax Perk

Late last year Congress finally moved to boost the maximum commuter tax benefit for transit riders to the same level that car commuters receive. That means transit riders can buy up to $255 in fares each month with pre-tax income, just like drivers can pay for $255 in parking expenses with pre-tax income.

Great news, right? Well, it's definitely a step in the right direction (for years transit riders had their benefit capped at $130 compared to drivers' $250), but in a lot of places it won't have a big effect on how people commute. As TransitCenter noted in a 2014 report, eliminating the subsidy for parking altogether would be a much more effective way to cut traffic.

Now a new TransitCenter study examines exactly how "transit benefit parity" changes the equation:

Transit Center says federal action to correct the problem seems unlikely in the short term. But some cities are using their local powers to help level the playing field a little. For example, New York City and Washington, DC, recently passed laws requiring more companies to offer the transit benefit. In New York, it is estimated that law will make the benefit available to 600,000 additional workers.

Elsewhere on the Network today: Architect this City explores new housing market data from Zillow that shows how urban home values have recently eclipsed suburban home values. Itinerant Urbanist recounts a rare occasion where the sprawl lobby wanted better rail service. And Bike Portland reports that local environmentalists are weighing a tax proposal that would expand bus service 42 percent.