Schumer Wants Transit Tax Breaks to Become Permanent

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    NEWSLETTERS

    Getty Images/Spencer Platt
    NEW YORK - People swipe their metro cards in the New York City subway on February 23, 2010 in New York, New York. The Metropolitan Transit Authority (MTA) is expected to announce fare hikes in the next few days.

    When it comes to the Metropolitan Transit Authority , commuters rarely get a break to save some extra cash. That’s why Sen. Chuck Schumer is fighting to make a Stimulus Act provision that allows straphangers to use $230 in pre-tax wages for public transit permanent, according to the New York Daily News.

    “In every corner of every borough, families are struggling to make ends meet,” said Schumer (D-NY). “It's more important than ever that the federal government not throw salt in their wounds."

    If lawmakers don’t keep the current provision in place, the pre-tax amount commuters will be able to use to pay for mass transit will drop to $120. The tax break has allowed individuals to save more than $1,000 a year on public transportation. Overall, the provision has saved taxpayers $150 million each year. Employers have saved an estimated $35 million in payroll taxes using TransitChek, according to the Daily News.

    In the next few days the MTA is expected to announce fare hikes for New York City Transit, the Long Island Rail Road and Metro North Trains.

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