Mass Transit Incentive to be Cut While Parking Incentive Stays the Same

Obscured in the debate over whether to extend the payroll tax cut is the possible loss of an incentive to take mass transit. If Congress takes no action (and it appears it won't), the tax-free fringe benefit for taking mass transit will be cut in half, while the benefit for driving to work stays the same. That sends a bad message.

Currently, your employer can give you up to $230/month pre-tax to cover your mass transit costs, the same as they can give you to pay to park your car. The transit benefit is set to go back down to $120 on January 1. That's where it was before the stimulus bill increased it to its current level. Granted, a monthly subway pass in many cities is less than $120 ($95 in Atlanta, $104 in New York City), but the monthly expense for commuter trains like the Long Island Railroad can run hundreds of dollars. The bottom line is cutting a benefit for commuting while leaving the parking benefit the same sends exactly the wrong message when policies should be encouraging people to leave their cars at or near their home.

Are high gas prices driving people to transit?

With gas well over $4 for the past few months, and gas hard to find at any price in the Southeast lately, I often ask myself what impact it's having on transit ridership. Anecdotally, I have noticed more people on the trains during rush hour. But what are the real numbers?
MARTA recently reported that in the month of July, ridership on the overall system was up 13.2 percent (14 million boardings) over the same month last year. Ridership increased across the board for all modes of transit including increases of 12.9 percent (7.8 million boardings) for rail, 13.6 percent (6.2 million boardings) for bus, and 18.2 percent (37 thousand boardings) for MARTA's mobility paratransit service for seniors and disabled customers.
This does not include the impact of the recent gas shortages that we have experienced. I look forward to seeing those numbers. For more information about how to take advantage of transit in Atlanta go to http://www.itsmarta.com/.