Transportation Equity Act: A Legacy for Users

TRANSPORTATION EQUITY ACT: A LEGACY FOR USERS -- (Senate - May 12, 2005)

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AMENDMENT NO. 674 TO AMENDMENT NO. 605

Mr. SCHUMER. Mr. President, I call up my amendment No. 674, which I believe is at the desk.

The PRESIDING OFFICER. The clerk will report.

The bill clerk read as follows:

The Senator from New York [Mr. SCHUMER], for himself, Mr. Kennedy, Mrs. Clinton, Mr. Levin, and Mr. Sarbanes, proposes an amendment numbered 674.

Mr. SCHUMER. Mr. President, I ask unanimous consent that reading of the amendment be dispensed with.

The PRESIDING OFFICER. Without objection, it is so ordered.

The amendment is as follows:
(Purpose: To increase the transit pass and van pooling benefit to $200)

On page 628, line 23, strike ``$155'' and insert ``$155 ($170 for 2007, $185 for 2008 and $200 for 2009 and thereafter)''.

On page 629, line 5, strike ``2008'' and insert ``2009''.

On page 629, line 7, strike ``2007'' and insert ``2008''.

Mr. SCHUMER. Mr. President, I will be brief. This amendment raises the tax-free mass transit benefit from $155 to $200 per month by the end of the life of the Transportation bill. I, first, thank my colleagues on the Finance Committee, Mr. Grassley and Mr. Baucus, for raising the amount to $155. That is already in the bill. What this amendment does is raise the remainder over the course of the bill to $200. What it will do is equalize the benefit offered by employers for transit expenses with the current benefit offered for parking expenses.

I understand that Senators BAUCUS and GRASSLEY are working with the Budget Committee to get this amendment approved. So I hope we will not have to vote on it or debate it much longer than this. I greatly appreciate their efforts.

Basically, we give people a $200 deduction when they drive to work. It is obviously a business expense if they have to pay for parking, but mass transit has always been discriminated against. We do not give people that deduction for mass transit. This makes it equal. It does not favor one, does not favor the other. It does not take from highways to give to mass transit. It is a win-win-win.

Now, mass transit ridership is at an all-time high nationwide. It continues to rise in New York and across the country. For millions of transit riders, this increase will save them hundreds of dollars every year. Raising the transit benefit will simultaneously reduce traffic, congestion, and smog while saving commuters in New York and across the country hundreds of dollars every year.

The existing disparity between the two benefit levels has also created a financial incentive for employees to drive to and from work alone rather than utilize transit or a vanpool. The amendment eliminates this disparity. The transit benefit provides a low-cost way to get more cars off the road. In the New York metropolitan area alone, commuters save over $150 million, thanks to the transit benefit. Employers have saved significantly as well, over $35 million. And that amount can be multiplied for benefits throughout the country.

By taking cars off the road, increasing the transit benefit is sound environmentally as well. It reduces emissions, which leads to cleaner air, and cuts gasoline use across the board.

I hope we can support this good tax cut unanimously.

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