The commuter transit benefit, a tax-deductible subsidy that can be offered by employers, was increased to $230 a month by a provision of the American Recovery and Reinvestment Act. That’s the same level that was previously available for parking expenses.
The benefit will fall back to $120 a month unless Congress includes it in the current compromise taking shape between lawmakers and the White House on extending the Bush tax cuts. The benefits for parking a car, however, will remain at $230 a month.
The Dayton RTA issued a release Thursday asking customers to contact legislators and provided sample letters on its website, i-riderta.org.
“There should be no debate about extending this vital commuter benefit for the American worker,” said Frank Ecklar, spokesman for the RTA. “Without this tax extension, employers will have no financial incentive to provide transit commuter benefits equal to the parking benefit.”
Ecklar said 25 regional businesses and agencies participate in the RTA’s Smart Choice program, which allows businesses to provide the benefit, often by buying bus passes and either giving them to employees or selling them at a discount.
Failure to extend the benefit would directly affect the middle class, said Mantill Williams, a spokesman for the American Public Transportation Association, because transportation costs make up a fifth of most households’ budgets.
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