[Congressional Record Volume 146, Number 16 (Tuesday, February 22, 2000)]
[Senate]
[Pages S687-S688]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ROBB (for himself, Mr. Moynihan, Mr. L. Chafee, Mr. Dodd, 
        Mr. Kerry, Mr. Lautenberg, Mr. Lieberman, Ms. Mikulski, Mr. 
        Sarbanes, Mr. Schumer, and Mr. Warner):
  S. 2083. A bill to amend the Internal Revenue Code of 1986 to provide 
a uniform dollar limitation for all types of transportation fringe 
benefits excludable from gross income, and for other purposes; to the 
Committee on Finance.


                  commuter benefits equity act of 2000

 Mr. ROBB. Mr. President, today with Senator Moynihan I 
introduce legislation that will continue our fight on urban sprawl by 
encouraging the use of public transportation. The Commuter Benefits 
Equity Act of 2000 increases the tax exemption for transit and van 
passes to the same level as parking. Currently, we allow employers to 
provide up to $175 a month in tax-free parking benefits, but only $65 a 
month for transit. This makes no sense when our goal is to reduce the 
amount of traffic on our highways.
  The Commuter Benefits Equity Act of 2000 raises the limit on transit 
and van passes up to the current limit for parking passes, $175 a 
month. Both of these benefits will then be adjusted for inflation 
annually. To ensure that federal employees can also take advantage of 
this benefit, the bill also eliminates an outdated provision that 
currently precludes an employee from cashing out his employer-provided 
parking pass and using an employer-provided transit pass instead. It is 
important that federal employees have the same access to public 
transportation benefits as do private sector employees.
  While this is but one step towards dealing with traffic congestion 
and the more comprehensive problem of sprawl, it is an important one. I 
will continue to push for sensible legislation, like this bill, that 
continues to improve our quality of life.
 Mr. MOYNIHAN. Mr. President, I wish to say a few words about 
the Commuter Benefits Equity Act of 2000, which Senator Robb introduced 
today. I am proud to join Senators Schumer, Lautenberg, Lieberman, 
Dodd, Chafee, Mikulski, Warner, Kerry, and Sarbanes as a cosponsor of 
this legislation, which will provide substantial tax savings to 
American workers and move commuters out of their cars, off our 
congested highways, and onto mass transportation systems.

[[Page S688]]

  The Commuter Benefits Equity Act of 2000 represents the latest in a 
decade-long series of Federal surface transportation policy reforms 
that began with the Intermodal Surface Transportation Efficiency Act of 
1991 (ISTEA). Instead of building highways irrespective of need or 
economic justification, we have, since ISTEA, turned our focus to 
improving the mobility of Americans while reversing some of the 
environmental degradation caused by highway congestion. We have made 
great progress and built formidable constituencies for balanced 
transportation investments, but arguments over Federal transportation 
priorities extend back to Alexander Hamilton and Thomas Jefferson. In 
short, we must remain vigilant.
  Under current law, employers may permit employees to set aside up to 
$65 of their monthly pre-tax salary to pay for commuting costs. This 
benefit, known as the transit/vanpool ``qualified transportation 
fringe,'' excludes up to $780 of a worker's annual salary from Federal 
income taxes and reduces employer payroll taxes while encouraging mass 
transit usage. If employers prefer, they may choose to offer the 
benefit in addition to an employee's salary. Under this system, workers 
receive a Federal tax-free benefit of up to $780 per year, which 
employers may provide at a far lower cost than a commensurate salary 
increase.
  These are sensible measures that promote environmentally sound 
commuting practices, and reward working Americans. However, a similar 
benefit exists for employer-provided parking spaces with a monthly cap 
of $175 per month. For many commuters whose companies offer both the 
transit/vanpool and parking benefits, driving to work can be 
significantly cheaper. With this bill, my colleagues and I are stating 
that the Federal government should, at minimum, treat transit commuters 
and those who drive to work equally. Our proposal is to raise the cap 
on the transit/vanpool benefit to $175.
  A second feature of the bill expands the availability of the transit/
vanpool benefit to many Federal employees who are precluded from using 
it because of Federal employee compensation law. Specifically, under 
current law Federal employees may not ``cash-out'' their parking space 
benefit in exchange for either taxable income or the tax-free transit 
and vanpool benefit. This section of the bill permits Federal employees 
to enjoy the same benefits as their private sector counterparts.
  I believe that this bill is long overdue. Federal tax policy should 
not encourage people to drive to work, and Federal employees should not 
be prohibited from enjoying the same tax benefits as other working 
Americans. In passing this bill, we can institute a measure of fairness 
into both Federal tax policy and Federal employee compensation. In 
addition, we can reduce automobile congestion and air pollution from 
our highways.
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