**The following was sent to numerous Members of Congress
June 6, 2000
The Honorable Jerry Weller
424 Cannon House Office Building
Washington, DC 20515
Dear Representative Weller:
We write to ask you to co-sponsor legislation introduced in the House (HR 3546) that would raise the Qualified Transportation Fringe Benefit monthly cap for transit and vanpools from $65 to $175.
Since 1998, when TEA-21 was enacted into law, employers have been afforded the opportunity to provide transit and vanpool benefits to their employees on a pre-tax basis. Under current law, employers may permit employees to set aside up to $65 of their monthly pre-tax salary to pay for commuting costs. This exempts up to $780 of a worker's annual salary from federal income taxes and reduces employer payroll taxes while encouraging alternative modes of transportation, such as transit and vanpools. The Qualified Transportation Fringe Benefit is truly a win-win for employers and employees alike.
But the business community has not been the only beneficiary. Transit ridership has increased steadily since 1995 and is currently as high as it has been in 40 years. In 1999, 9 billion trips were taken on public transportation establishing, once again, mass transit as the artery for our city’s and county’s economic vitality.
An increase in the cap for transit and vanpool would create parity with the $175 cap already offered for parking benefits. More importantly, raising the cap to $175 a month would provide an added incentive for commuters to get out of their cars, reducing gridlock and congestion. This would increase the efficiency of our entire transportation system, which in turn improves the lives of our citizens and enhances our local economies. Increased transit and vanpool use also provides cleaner air and a healthier environment.
We urge you to co-sponsor H.R. 3546 to build on successes that are already beginning to touch commuters and businesses in our cities and counties.
Thank you,
Ken Sufka
Association of Commuter Transportation
Executive Director
William W. Millar
American Public Transportation Association
President
Larry Naake
National Association of Counties
Executive Director
J. Thomas Cochran
U.S. Conference of Mayors
Executive Director
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