Fighting for Commuter Benefits in Tax Reform
The new Congress and particularly the House Ways & Means Committee continue work on legislation to simplify and reform the tax code. One potential provision could be the elimination of the Commuter Benefit (IRC Section 132(f)). The threat of eliminating the parking and transit benefit is real and the consequences are significant.
- More Congestion – If the transit benefit were to be eliminated, more commuters would turn in their bus and train tickets for their car keys; this means more people on the road and more congestion. Greater congestion has all sorts of impacts including less productivity out of employees, greater costs to ship and receive products, and a tardy workforce.
- Higher Taxes – No longer will your employees receive parking or transit benefits on a pre-tax basis, meaning more taxes for your and your employees.
- Complex Accounting – Elimination of the parking benefit means that employer-provided parking now must be accounted for and taxed. So all of those parking spots in your parking lots have to be assigned a value and that will be taxed.
- More Parking – Speaking of parking, with the cost of transit increasing by as much as 40%, more employees will chose to drive to work, which means that you may meed tp expand parking areas or rent/lease additional parking. In urban centers, the increased demand for parking will have a ripple effect that will lead to higher parking costs.
- Less Happy Employees – With more time driving and less money in their pockets, it should not come as a surprise to see a less happy and less productive workforce. Even those who were already driving will feel the impact.
ABG and our commuter product partners have been on the forefront fighting for commuters like those that participate in your Commuter Benefits program offering. From time to time, we need your help, and today is one of those days. It is in all of our interests to retain this valuable and popular benefit.
We are asking you to engage and help protect the Commuter Benefit:
Reach out to those Members of Congress that represent your company's headquarters and key branch locations as well as Congressional leadership. Tell them the impact that the Commuter Benefit has on your business and the well-being of your employees. Nothing has more impact to a Member of Congress than a call from a business that employs their constituents.
Motivate your employees that may receive the benefit to reach out to those same representatives and speak to the impact of the Commuter Benefit on them and their families. Tell your employees what the loss of the Commuter Benefit means to them and your business.
Go to www.commuterbenefitsworkforus.com and click on the link to send a message to Congress. Feel free to edit the letter on the website to tell your personal story of how the transit Commuter Benefit is important to you and your employees.