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Poughkeepsie Journal: Rep. Nan Hayworth Urges Commuter Tax Relief on Public Transit Use

Public transit riders could wind up with more money in their pockets if federal lawmakers approve new legislation to revive a tax break on their commuting expenses.
 
Federal law used to allow mass transit commuters to have $230 deducted pre-tax from their pay each month and set aside for commuting expenses, assuming their companies have tax benefit programs.
 
But when that tax code provision expired in January, the maximum amount was nearly cut in half to $125 a month. Meanwhile, those who drive to work and pay for parking can put away up to $240 a month before taxes.
 
To close that gap, Republican Rep. Nan Hayworth, of Bedford, has introduced the Commuter Savings Act, which would allow mass transit riders to also earmark up to $240 for their travel costs before taxes. How much public transit commuters would save depends on their income and tax rate and commuting expenses.
 
“Why shouldn’t those folks have the same kind of tax break as those who drive?” she said. “Our mass transit commuters are helping to save our environment and wear and tear on the roads” by reducing congestion.
 
Her bill is the latest in a string of efforts to equalize commuter tax benefits. Last year, Democratic lawmakers unsuccessfully pushed several pieces of similar legislation, including New York Sen. Charles Schumer’s Commuter Benefits Equity Act of 2011. Correcting the disparity was also part of the federal transportation bill, but was dropped in the final version that Congress approved last week.
 
Hayworth’s legislation calls for tax breaks retroactive to January and an extension of the benefit to the end of 2013. Hayworth said she wants to cover the annual cost of the tax breaks — $139 million — with money from the Prevention and Public Health Fund. The federal fund provides disease prevention and education programs that Hayworth argued can be performed by local governments.
 
“I would like to give commuters in these very tough times every help we can,” she said.
 
Michael Witt, 40, of West Harrison said he spends $229 a month for his Metro-North Railroad pass. Under Hayworth’s proposed legislation, the whole cost of his monthly ticket could be covered with pre-tax salary.
 
“I think it’s great,” he said. “I think it’s a perk for commuters that’s well deserved.”
 
Mass transit advocates said they support the bill, but noted it will be a challenge to pass.
 
Veronica Vanterpool, executive director of the Tri-State Transportation Campaign, said “we applaud Congresswoman Hayworth for wanting to restore parity between the transit commuter and parking commuter benefits,” but pointed out similar bills have already been introduced.
 
She also voiced concern about how the tax breaks would be paid for under Hayworth’s proposal and said “attaching the bill to contentious funding sources” could hurt its chances.
 
While he’s pleased to see that both Democrats and Republicans are addressing the issue, Paul Dean, vice president of TransitCenter, a not-for-profit that promotes public transportation use, said he doesn’t think Hayworth’s bill can pass on its own.
 
“I think our best shot at restoring parity is going to be part of a larger tax package we hope will pass by the end of the year,” he said.
 
Robert Healy, vice president of government affairs for the American Public Transportation Association,” called it a “terrific piece of legislation,” but doubted it will move soon.
 
“I don’t think Congress is going to be doing a lot of tax legislation between now and the election,” he said, but “I would be happy to be proven wrong.”Public transit riders could wind up with more money in their pockets if federal lawmakers approve new legislation to revive a tax break on their commuting expenses.
Federal law used to allow mass transit commuters to have $230 deducted pre-tax from their pay each month and set aside for commuting expenses, assuming their companies have tax benefit programs.
 
But when that tax code provision expired in January, the maximum amount was nearly cut in half to $125 a month. Meanwhile, those who drive to work and pay for parking can put away up to $240 a month before taxes.
 
To close that gap, Republican Rep. Nan Hayworth, of Bedford, has introduced the Commuter Savings Act, which would allow mass transit riders to also earmark up to $240 for their travel costs before taxes. How much public transit commuters would save depends on their income and tax rate and commuting expenses.
 
“Why shouldn’t those folks have the same kind of tax break as those who drive?” she said. “Our mass transit commuters are helping to save our environment and wear and tear on the roads” by reducing congestion.
 
Her bill is the latest in a string of efforts to equalize commuter tax benefits. Last year, Democratic lawmakers unsuccessfully pushed several pieces of similar legislation, including New York Sen. Charles Schumer’s Commuter Benefits Equity Act of 2011. Correcting the disparity was also part of the federal transportation bill, but was dropped in the final version that Congress approved last week.
 
Hayworth’s legislation calls for tax breaks retroactive to January and an extension of the benefit to the end of 2013. Hayworth said she wants to cover the annual cost of the tax breaks — $139 million — with money from the Prevention and Public Health Fund. The federal fund provides disease prevention and education programs that Hayworth argued can be performed by local governments.
 
“I would like to give commuters in these very tough times every help we can,” she said.
 
Michael Witt, 40, of West Harrison said he spends $229 a month for his Metro-North Railroad pass. Under Hayworth’s proposed legislation, the whole cost of his monthly ticket could be covered with pre-tax salary.
 
“I think it’s great,” he said. “I think it’s a perk for commuters that’s well deserved.”
 
Mass transit advocates said they support the bill, but noted it will be a challenge to pass.
 
Veronica Vanterpool, executive director of the Tri-State Transportation Campaign, said “we applaud Congresswoman Hayworth for wanting to restore parity between the transit commuter and parking commuter benefits,” but pointed out similar bills have already been introduced.
 
She also voiced concern about how the tax breaks would be paid for under Hayworth’s proposal and said “attaching the bill to contentious funding sources” could hurt its chances.
 
While he’s pleased to see that both Democrats and Republicans are addressing the issue, Paul Dean, vice president of TransitCenter, a not-for-profit that promotes public transportation use, said he doesn’t think Hayworth’s bill can pass on its own.
 
“I think our best shot at restoring parity is going to be part of a larger tax package we hope will pass by the end of the year,” he said.
 
Robert Healy, vice president of government affairs for the American Public Transportation Association,” called it a “terrific piece of legislation,” but doubted it will move soon.
 
“I don’t think Congress is going to be doing a lot of tax legislation between now and the election,” he said, but “I would be happy to be proven wrong.”
 
The original article was written by Theresa Juva Brown and published in The Journal News on July 5, 2012. The Poughkeepsie Journal reprint can be found here.