Mass Transit: Effects of Tax Changes on Commuter Behavior
RCED-92-243
Published: Sep 08, 1992. Publicly Released: Oct 14, 1992.
Skip to Highlights
Highlights
Pursuant to a congressional request, GAO reviewed the role that tax policy plays in workers' commuting decisions, focusing on: (1) the contrast between tax treatment of mass transit and parking benefits; (2) how the current tax treatment influences commuter behavior; (3) whether proposed tax law modifications would encourage mass transit use; and (4) alternative efforts to discourage drive-alone commuting and encourage mass transit use.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| It is unclear how effective legislative changes in the tax treatment of transportation benefits, such as those currently proposed, would be in discouraging drive-alone commuting and encourage greater reliance on mass transit. Therefore, Congress may wish to consider including language in such legislation to direct the Secretary of Transportation to monitor the effects of increasing the tax-free limit on transit benefits and taxing parking. Congress may wish to use this information to determine if additional legislative changes are desirable. | Legislation passed around the time the report was issued did not call for monitoring. Because further legislation is not expected in the near future, the recommendation is being closed. |
Full Report
Public Inquiries
Topics
Car poolsComparative analysisEconomic analysisEmployee incentivesFringe benefit costsMass transitParking facilitiesPrivate sectorProposed legislationTax lawTransportation policiesCommuters