The Hill News

Most policy makers agree that public transit is good for America. After all, it eases traffic congestion, lowers pollution, reduces our dependence on foreign oil, improves our quality of life, and makes it easier for employers to attract quality workers. At the very least, few would dispute the notion that the tax code should give equal treatment to those who pay to park their car at work and those who take the subway, bus, trolley or train.

That’s why Congress amended the commuter benefit in 2009 to allow workers to pay for up to $230 per month in transit fares with pre-tax dollars, the same amount allowed for parking expenses. Before 2009, the transit benefit had been limited to just $120 per month.

However, unless Congress acts swiftly, the change that brought parity to the transit benefit will expire at the end of the year and discrimination in the tax code will return.  Starting on January 1, 2012, workers will be eligible to contribute up to! $240 per month pre-tax for parking, but only up to $125 per month pre-tax for transit.

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