How Congress Skews Commuter Benefits

In light of New York Democrat Senator Charles Schumer's current attempts to raise commuter benefits from their low levels, Emily Badger of The Washington Post explores some of the implications of this low incentive. As Badger notes, "If you're a driver, the federal commuter benefit allows you to spend up to $245 of your pre-tax income each month on parking at work. If you pay to take the bus or train instead, the benefit is only about half that — $130. For several years now, transit advocates have gone back and forth with Congress trying to equalize the benefits (or remove the bias, depending on how you look at it). And for a brief and glorious period, the Recovery Act (and some extensions) temporarily did that."

Having lower incentives for public transportation than driving makes the commute worse for everyone; it incentivizes more congestion, greater health risks, and longer commute times. The opposite incentive structure, where public transportation benefits are higher (allowing riders to also at least cover the full cost of their commute), improves commute times for drivers, and leads to fewer negative social externalities associated with driving.

According to Badger, the current level of benefits also requires, "commuters who don't use cars to pay what amounts to about $565 more in taxes every year, according to the American Public Transportation Association."