Tax Policy

Right now, transit riders get the same commuter tax benefits as drivers: $245 a month in pre-tax income to spend to get to work. But next year, straphangers might go back to second-class status, getting just $125 for their ride.

A bill moving through Congress could help struggling transit systems around the country.

MAP-21 expires in a year and five months. When it does, if lawmakers haven’t already found a solution to the “transportation fiscal cliff,” they’ll have to do one of three things, according to a report issued last week by the Congressional Budget Office [PDF]:

Real estate in the United States, it turns out, isn't really guided by "the invisible hand" of the free market.

UPDATE 1:47 p.m.: Speaker Boehner just sent out an email to reporters, highlighting media reports of his comments that assert that he doesn't intend to raise tax rates. It clarifies his position that the election doesn't equal a "mandate for raising tax rates” on the American people. 

UPDATE: The final bill contained a $2.4 billion transfer from Leaking Underground Storage Tank Trust Fund to the Highway Trust Fund in June 2012 and three transfers from the General Fund to the Highway Trust Fund, totaling $18.8 billion. They were: $6.2 billion to the Highway Account of HTF in October 2012; $10.4 billion transfer to Highway Account of HTF in October 2013; and $2.2 billion transfer to Mass Transit Account of HTF in October 2013. They dropped the car tariffs change and the gas guzzler transfer. They replaced those smaller transfers and offsets with the pension provisions and a tiny bit from the roll-your-own-cigarettes change.

As Congress prepares to reconvene and take up the payroll tax cut extension yet again, a movement is forming to restore the transit commuter tax benefit to 2011 levels.

The Senate has voted to extend the payroll tax cuts – for two months – but didn't act on a measure to maintain parity between the commuter parking and transit benefits. This means transit riders will get their pre-tax benefits cut in half come January 1st, while those who drive to work will see a small jump in how much the government subsidizes their parking expenses. As Steve Davis of Transportation For America puts it (emphasis his):

The website didn't lie: Apparently there really are no markups scheduled on the Senate Banking Committee's calendar.