Posted: Monday, 26 July 2010 11:51AM
Schumer To Work To Make Transit Tax Break Permanent
NEW YORK (Reuters) - Senator Charles Schumer said he will push to make the federal mass transit tax break a permanent part of the tax code.
The federal mass transit tax break, which currently saves mass transit riders over $1,000 a year, is set to expire at the end of the year.
"Now more than ever, with increasing fares and reduced services, we need to maintain incentives for middle-class New Yorkers to use mass transit when commuting to and from work so they don't have to break the bank," Schumer said.
In 2009, the mass transit benefit was almost doubled to $230 a month, creating over $1,000 in savings for commuters.
Schumer, a Democrat from New York, is pushing to make the $230 transit benefit permanent; otherwise, it's due to expire on December 21.
"The mass transit benefit is a win for commuters because it can slash the cost of getting to work, it's a win for businesses who enjoy a significant tax break to cover the cost of the benefit, and it's even a win for the MTA because it helps boost ridership," Schumer said.
"We cannot afford to let this expire," he said.
In the New York metro area alone, commuters typically save well over $150 million a year because of the transit benefit, according to a statement from Schumer's office.
Employers have saved over $35 million since the benefit went into effect in the New York area, the statement said.
Story & Photos Copyright 2010 Reuters
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