Immigrate to the United States and pay attention to life in New York: For subway, bus, and train passengers, tax reductions mean saving hundreds of dollars each year. However, the transportation industry has long been reluctant to reduce taxes, claiming it is part of administrative expenses. But perhaps they will soon have no choice.
According to the Wall Street Journal, on Monday, 13 members of the New York City Council's Transportation Committee unanimously voted to promote a bill that would require companies with more than 20 full-time employees to provide Federal Commuter Tax Benefits. The City Council is expected to vote on this proposal today.
This federal benefit allows participants to spend up to $130 of their pre-tax income each month on transportation costs. It effectively provides them with a discount as the benefit reduces the personal taxes of the passengers.
The Riders Alliance, a transportation advocacy organization, is actively promoting this proposal. It is estimated that this proposal could save middle-income passengers who purchase a $112 MTA subway and bus monthly pass approximately $443 a year.
John Raskin, executive director of the Riders Alliance, stated that not many cities can address the nearly biennial increase in transportation costs, but this action can make public transportation in New York City more affordable and accessible.
Some business organizations oppose the bill, stating that it would shift the burden of administrative costs onto small businesses.
Ydanis Rodriguez, chair of the City Council's Transportation Committee, supports the proposal. Majority Leader Jimmy Van Bramer and City Speaker Corey Johnson have also expressed their support.
Corey Johnson also stated that the proposal helps reduce automobile pollution by encouraging the use of public transportation to protect the environment.
New York City Mayor Bill de Blasio has not yet stated whether he will sign the proposal, but one of his press representatives indicated that the city government supports any measures that reduce transportation costs for passengers.
Raskin stated that once the proposal becomes law, it will benefit approximately 450,000 New York City workers.