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Bad policy, the sequel
Jan. 6th, 2012 12:06 amBack in December 2010 I complained:
Another example of that strangulation, about which I've seen very little discussion: The IRS has a policy whereby you can deduct a monthly amount from your taxable wage if you spend it on commuting expenses. As a wage deduction, this directly reduces your taxable income, so you get a discount on your commuting costs roughly equal to your highest marginal wage tax rate.
Until 2010, the maximum amount you could deduct for parking was much higher than the maximum amount you could deduct for mass transit: approximately $215/month for parking vs. $120/month for mass transit. In 2010, though, the mass transit benefit was increased to parity with parking, which is, if anything, not going far enough--tax policy should be used to encourage behavior which is less destructive rather than more destructive.
With the start of 2012, the mass transit benefit cap has dropped back down to $125/month, while the parking benefit increased to $240.
Stupid. Stupid. Our country is broken.
The price of my monthly MTA (commuter rail) ticket just jumped 10%. . . . I hate how the Great Recession is slowly (or not-so-slowly) strangling government services, especially the servicesI usethat encourage better methods of living, as public transit does.
Another example of that strangulation, about which I've seen very little discussion: The IRS has a policy whereby you can deduct a monthly amount from your taxable wage if you spend it on commuting expenses. As a wage deduction, this directly reduces your taxable income, so you get a discount on your commuting costs roughly equal to your highest marginal wage tax rate.
Until 2010, the maximum amount you could deduct for parking was much higher than the maximum amount you could deduct for mass transit: approximately $215/month for parking vs. $120/month for mass transit. In 2010, though, the mass transit benefit was increased to parity with parking, which is, if anything, not going far enough--tax policy should be used to encourage behavior which is less destructive rather than more destructive.
With the start of 2012, the mass transit benefit cap has dropped back down to $125/month, while the parking benefit increased to $240.
Stupid. Stupid. Our country is broken.
