Subsidizing Congestion: The Multibillion-Dollar Tax Subsidy That's Making Your Commute Worse
Overview
The federal government provides subsidies through the tax code for employer-provided and employer-paid automobile parking,
transit passes, and some other commuter expenses, but it does so in ways that run counter to the nation’s overall transportation goals.
Those who receive the greatest tax savings from the transit benefit are not the low-income and working Americans who depend on transit the most, but rather higher-income Americans whose employers are more likely to offer transit benefits, who spend more on their transit commutes, and who save a greater share of every dollar spent on transit benefits due to their higher marginal income tax rates.