[Congressional Record Volume 143, Number 23 (Thursday, February 27, 1997)]
[Extensions of Remarks]
[Page E340]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




[[Page E340]]



                        GIVE COMMUTERS A CHOICE

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                            HON. JOHN LEWIS

                               of georgia

                    in the house of representatives

                      Thursday, February 27, 1997

  Mr. LEWIS of Georgia. Mr. Speaker, today I am introducing the 
Commuter Choice Act, legislation that would help the environment while 
giving commuters greater choices in how they get to work.
  Too often, our tax code subsidizes commuting by cars at the expense 
of other forms of transportation. Under current law, an employer can 
provide its employees free parking valued at up to $170/month. The 
employee does not include this benefit as income, and the employer may 
deduct the cost of providing the parking when computing its own taxes. 
However, if the employer provides its employees subsidized transit 
passes, the employee must include the benefit as income if it exceeds 
$65/month. In other words, if you commute by car, you can receive the 
equivalent of $170/month tax free. If you commute by bus or subway, you 
can only receive the equivalent of $65/month tax free.
  The code discriminates even more against those who walk, car pool or 
commute by bicycle. Suppose that, in addition to parking and mass 
transit, an employer wants to give its employees the choice of 
receiving a commuting stipend. In other words, an employee could choose 
between a parking space, a transit pass or $20/month to cover other 
commuting expenses. Current tax law dictates that the cash stipend by 
included as income and taxed. In addition, if the employer offers 
employees the OPTION of a commuting stipend, then all employees must 
include the value of the cash stipend as income. In other words, the 
employees would have to pay taxes on the value of the cash stipend, 
even if they chose a parking space or transit pass. This tax treatment 
provides a huge disincentive for employers to offer a commuting stipend 
in lieu of a parking space.
  My legislation would level the playing field among commuting choices. 
First, it would increase the value of transit subsidies that an 
employee could receive tax free to $170/month, the same value as the 
parking space. In addition, it would allow employers to offer employees 
the choice of a commuting stipend. Finally, it would require employers 
to offer employees the option of a cash stipend of at least $15/month. 
The result is that all commuting benefits are treated more equally.
  This bill can help reduce congestion and combat air pollution, and it 
does so without raising taxes or creating new environmental 
regulations. It simply gives commuters a choice.

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