You may have to dig a little deeper into your wallet for your commute to work.
The commuter tax benefit , the tax break provision in the stimulus bill in 2009 by Senator Chuck Schumer (D-NY), is set to end at the end of this year.
The tax-free benefit is voluntarily offered by companies and was designed to make mass transit more appealing, help reduce congestion and prevent pollution.
The Schumer tax made both the mass transit and auto tax deductions equal. However, if the tax is not extended, those who take mass transit will get less of a deduction because the tax goes back to pre-stimulus levels.
I asked Dan Neuburger, CEO of TransitCenter if this provision was let to expire what kind of ripple effect this would have on families and the economy.
LL: If this benefit is taken away this could create a significant burden on families. What kind of further impact will this have on consumer spending that is already hurt?
DN: With transportation costs being the 2nd largest household expense, many Americans rely on this benefit to reduce their daily travel costs. The reduction of the benefit equates to a tax increase at a time when many can least afford it.Page 1 of 4 | Next Page