The transit portion of the federal commuter benefit is set to be reduced nearly in half at the end of 2011 if action is not taken. Currently, employers can allow their employees to use a tax-free portion of their paycheck for transit or parking up to $230 per month. If action is not taken, the transit portion of this benefit will be reduced to $120/month. More than 2.7 million public transit and vanpool commuters currently use this benefit. Employers also save money on their payroll taxes by offering the benefit. Cutting the transit benefit will not only hurt employees and employers, it also sends a strong message about how much we encourage the use alternate modes of transportation.
Neither Senators Patty Murray or Maria Cantwell, or Representative Norm Dicks have sponsored the bill to save the commuter benefit.
Contact your senators and representative today and learn more about the potential reduction by going to the Commuter Benefits Work For Us website.