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EDITORIAL: Play Fair On Transit: TAX WRITE-OFF DISCREPANCY ? IRS shouldn't favor parking over the bus


October 29, 2009 (McClatchy-Tribune Information Services -- Unrestricted) Let's say you have a choice of whether to drive to work or take the bus. The bus would be the green choice. But Uncle Sam is telling you to drive.



A recently released analysis by Subsidyscope, a joint project of Pew Charitable Trusts and the Sunlight Foundation, says that parking is favored over transit by the tax code. Workers can write off a maximum of $205 in monthly parking benefits, while the maximum tax-free value of transit passes is $105 per month.

As a result, the government will give away nearly $3 billion in tax breaks to employees for parking costs, but only $480 million to those who take transit. What's wrong with this picture?

It encourages more driving, which leads to more congestion, more pollution and more dependence on foreign oil. The lower costs of driving make it difficult for transit operators to compete and improve service.

The study by Subsidyscope (subsidyscope.com/projects) discloses that in fiscal 2008, highways got $30 billion in direct federal spending while transit got $9 billion, aviation $3 billion and intercity railroads $1 billion. It gives lie to the persistent notion that transit is heavily subsidized while driving is not. Looking at overall costs -- highways, police, medical, utilities -- some studies have concluded that gas taxes only pay about 60 percent of the cost of the highways.

The point is that all major modes of transportation are subsidized; the challenge is to find the right balance.

The days of cheap oil, stable climate and a compliant Middle East are well behind us. We need to move people using less fossil fuel. As Congress begins to consider the new transportation bill, it must look to change the focus to more transit.

It can start by at least equalizing the tax write-off for taking the bus.

Copyright (C) 2009, The Hartford Courant, Conn.

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