Cubic voices opposition to proposed cuts in pre-tax benefits for mass transit

Cubic Transportation Systems has voiced its opposition to the proposed cuts in pre-tax benefits for the Transit Benefit Program available to citizens who use public transportation. Within the Senate Finance Committee, Senators are considering reducing the pre-tax benefit to individuals using public transportation from its current US$245 per month to US$125 per month, close to a 50 per cent cut. Cubic believes it is in the Committee’s best interest to maintain the current transit benefit since promoting pub
August 8, 2013 Read time: 2 mins
378 Cubic Transportation Systems has voiced its opposition to the proposed cuts in pre-tax benefits for the Transit Benefit Program available to citizens who use public transportation.  Within the Senate Finance Committee, Senators are considering reducing the pre-tax benefit to individuals using public transportation from its current US$245 per month to US$125 per month, close to a 50 per cent cut.

Cubic believes it is in the Committee’s best interest to maintain the current transit benefit since promoting public transportation helps the consumer, the economy and the environment, stating that the 50 percent cut under US Senate works against the economy, energy independence and wage earners.

“Developing a legislative plan to review and streamline our current tax code is laudable and to be encouraged.  But to reduce the Transit Benefit program will discourage the millions of citizens and employees who use public transportation as a means of commuting to and from their place of business,” said Steve Shewmaker, president of Cubic Transportation Systems. “This works against our national interest to be energy independent, promote economic growth, reward wage earners and be pro-environment. Moreover, at a time when gasoline prices are at a record high and the U.S. trade balance so negatively impacted by oil imports, the last thing policy makers should be considering is legislation that discourages the use of public transit.  The government should be encouraging our citizens to take advantage of public transportation when and where it is accessible.”

“By financially penalising those who utilise – and often rely on – public transportation, it discourages ridership, prompting more individuals to drive personal vehicles, consume fossil fuels and significantly contribute to growing congestion and pollution of urban areas,” said Shewmaker.  He went on to say that not only would the benefit cuts impact riders but they would negatively affect the transit market as well. Public transit’s growth, accessibility and increased efficiencies for the consumer and transportation authorities are at the heart of the transit business.

Related Content

  • January 12, 2015
    Momentum builds for increase in US fuel tax
    The possibility of a gasoline tax increase to help pay for federal highway improvements was attracting increased attention in the US Congress as a prominent conservative Republican on Thursday said he was willing to consider the move. According to Reuters, Senator Orrin Hatch, the new chairman of the Senate Finance Committee that oversees tax measures, told reporters he has an open mind on raising the 18.4 cents per gallon tax levied at the gasoline pump. "I prefer not to increase taxes, but to me tha
    Read More
  • February 8, 2016
    Obama to propose oil tax to fund transportation projects
    President Obama is to propose a US$10 a barrel tax on crude oil to fund the overhaul of the US transportation infrastructure. White House officials say the president’s 21st Century Clean Transportation System, funded by a new fee paid by oil companies would increase American investments in clean transportation infrastructure by roughly 50 per cent while reforming the investments already made to help reduce carbon pollution, cut oil consumption and create new jobs. They say the new fee on oil will also en
    Read More
  • December 16, 2016
    Study reveals unexpected effects of replacing fuel tax
    Eric O’Rear, Wallace Tyner and Kemal Sarica examine the far-reaching implications of replacing fuel taxes with a mileage tax. Lawmakers at both the federal and state level are frustrated over declining fuel tax revenues as they struggle to fund projects for constructing and maintaining state-wide infrastructure.
    Read More
  • January 18, 2012
    Evidence growing for distance-based charging
    The case is growing for an alternative to fuel taxation for funding highway infrastructure. A more sustainable system of mileage-based charging can be established in a way that is acceptable to the travelling public, writes Jack Opiola. Fuel tax - the lifeblood relied on for 80 years to maintain and improve roads and transit systems - is now in considerable jeopardy in the United States. Increased vehicle fuel efficiency and a poor economy already hamper generation of fuel tax revenue; now a recent federal
    Read More

Highlighted Content