By Joe Rizza
In an effort to encourage the use of mass transit, United States Senator Charles Schumer is pushing for a bill that could save Long Island commuters who use mass transit hundreds of dollars each year.
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Senator Charles Schumer explains the Commuter Benefits Equity Act, which would give greater tax relief to commuters who use mass transit.
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At a press conference held at the Mineola train station, Senator Schumer detailed a plan - the Commuter Benefits Equity Act - which would give commuters more tax relief on transit expenses than they are now realizing.
Under current law, employers can set aside $65 each month or $780 per year of an employee's salary for mass transit expenses that the employee will not have to pay federal income taxes on. Commuters, therefore, can spend up to $780 a year of their income on mass transit and not pay tax on that income.
"Commuting is a necessity for hundreds of thousands of people on Long Island. It's also very expensive," Schumer said. "If you're the average Long Island Railroad commuter, you spend $155 per month so $65 a month helps, but it's not enough and it doesn't provide enough of the incentive that people on Long Island need."
The new proposed bill would save commuters on average $700 a year by increasing the maximum amount each commuter can set aside for mass transit costs. Instead of employers setting aside $65 a month or $780 a year that the commuter won't be taxed on, Schumer is proposing commuters not be taxed on $175 per month or $2,100 a year of mass transit expenses. "Over the course of the year, if you fully participate in the program, it saves you $700 in taxes that you otherwise would have paid," Schumer said. "Your employer can give you a $2,100 mass transit subsidy and you don't pay any federal taxes on it."
By increasing the amount of commuter expenses that is free of federal taxes by $110 a month, the bill makes using mass transit as financially attractive as commuting by car, Schumer said.
By increasing the appeal of using mass transit, the roads should become less crowded, proponents of the bill feel. Since 1982, the New York Metropolitan area has seen a 152 percent increase in traffic delays. "It only makes sense to give commuters an added incentive to get on the train and off the road," Schumer said.
The senator said the purpose of the bill is to do more for those who leave the car at home. "With the expanded transit benefit covering a greater share of commuter expenses, I think more employees will ask for it, more companies will offer it and more cars will be taken off the road," he said.
According to Schumer, only 25,000 Long Island commuters take advantage of the current law. However, he believes if the new bill passes, a lot more will take advantage of the tax relief. As a result, traffic for those commuting by automobile will decrease. "It's increasingly clear that we need to give affordable service to Americans who use mass transit," he added.
Mike Doyle of the Long Island Railroad Commuters Council also pointed out that by benefiting those who take the railroad monetarily, the socioeconomic health of region would improve.
The bill is being introduced in the Senate as the Commuter Benefits Equity Act of 2001 and has the backing of some Democrats as well as Republicans.
Schumer is urging members of Congress to enact it. Although Schumer is sponsoring the bill in the Senate, Congresswoman Carolyn McCarthy is said to be the driving force behind the bill. Schumer said the act is part a big mass transit bill that will come up in April but won't be voted on until as late as June.
One potential problem the Commuter Benefits Equity Act may pose is increasing the number of commuters on the Long Island Railroad, which has many of its peak hour trains already crowded, and increasing the need for more parking at various stations, which is already deemed a problem.
"If we're going to have mass transit work, we're going to have to upgrade," Schumer said. "We're going to have to increase things in every way. This is a tax benefit, which we need. We also need more trains, more access and better parking."
One solution to the problem of overcrowed trains may come from a project involving another way for trains to get into Manhattan. Schumer, said he has been able to secure funding for an east side connector, a tunnel to be put under the East River that would allow Long Island Railroad trains to not only go to Penn Station, but also to Grand Central Station. This project would greatly increase the capacity of the number of trains that could get into Manhattan. The project, Schumer said, is scheduled to be finished in four years.