Tax Policy

Currently thousands of workers in Chicagoland have part of their wages set aside to buy a transit pass. This occurs before taxes are deducted from their paychecks, and thus saves them a few hundred bucks each year in income taxes. Not everyone can do this, but a new bill in the Illinois House of Representatives intends to increase access to this federal tax benefit, as well provide an alternative option for paying for transit.

The mortgage interest deduction costs the federal government more than all rental subsidies combined. All that money promotes sprawl by encouraging people to buy more house, while transferring wealth to the upper tiers of the income ladder.

The "regressive" label often gets trotted out by proponents of cheap motoring, whether they're opposing a gas tax, tolls, or car fees. The problem with this argument is that many poor people don't own cars and are harmed by a transportation system that prioritizes driving instead of transit.

Once upon a time in America, the road system was largely funded by the gas tax. But that was many Highway Trust Fund bailouts ago.

As TransitCenter and the Frontier Group reported last week, the federal government pays a huge $7.3 billion subsidy to people who drive to work by making commuter parking expenses tax exempt. There are countless reasons for Congress to scrap this poorly-conceived, congestion-inducing subsidy. While policymakers consider the big picture, they also ought to examine how their own parking benefits are administered.

The federal government spends billions of dollars a year on tax subsidies that make traffic congestion worse, according to a first-of-its-kind analysis by TransitCenter and the Frontier Group. The culprit is the parking commuter tax benefit, which costs taxpayers $7.3 billion in foregone revenue each year, all while adding more than 800,000 cars to rush-hour traffic on the nation's roads each workday, the authors estimate.

It’s time to rev up the annual fight over parity between federal transit and parking benefits for commuters. Members of Congress hope this might finally be the year to get it done.

Finally, there is a light rail line connecting the Twin Cities. The Green Line, running 11 miles from Union Depot in downtown St. Paul to Target Field in downtown Minneapolis, cost $957 million and took decades to build. The process of choosing stations was contentious but eventually incorporated the proposals of low-income communities that wanted them, and the line is already being held up as a model. It's not the fastest way between the two downtowns, but it might be the best way. Jeff and I discuss.

And, side note: The giveaway for our spring pledge drive has changed since we recorded this podcast. Now, you'll be entered into a drawing to win a package of zines and books by feminist bike activist and writer Elly Blue. Thanks for your donation!