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.

For more information on companies in this article

Related Content

  • Cubic wins multi-million transit upgrade contract in Ireland
    December 19, 2014
    Cubic Transportation Systems has won a major multi-million euro modernisation programme for Iarnród Éireann, Irish Rail. Cubic led a team of four providers with specialist transport expertise to deliver the best solution for Irish Rail’s new fully integrated ticketing management and distribution system. The combined capabilities of Cubic and Sqills, along with its other delivery partners, CRMCulture and Rail Solutions, also meet the requirements of Irish Rail’s Customer First Programme, which puts the cu
    Read More
  • Integrated corridor management aids multi-modal transport planning
    January 24, 2012
    Telvent’s Jorgen Pedersen and Tip Franklin discuss how integrated corridor management can create synergies within a multimodal transportation infrastructure, while promoting modal shift. The mantra ‘We cannot build ourselves out of congestion’ has long been stated and too often ignored. But with the economy in dire straits, funding deficits and pressure to reduce governmental spending, this is now being taken seriously by almost everyone who has an interest in the flow of traffic. By ‘everyone’ we include
    Read More
  • Time for a rethink on road user charging
    February 1, 2012
    There is no value in further US VMT charging trials, except to delay the inevitable. These trials should end after completion of the University of Iowa's National Evaluation of a Mileage-based Road User Charge. There is far greater promise in unleashing private operators to commence profitable, non-tolling services, then using these for toll assessment and collection as fuel distributors are currently used to collect fuel taxation. Bern Grush writes
    Read More
  • US Senate approves Highway Trust Fund patch
    August 1, 2014
    The US Congress gave final approval last night to a US$10.8 billion bill to replenish the federal Highway Trust Fund and through to May 2015. It now goes to President Barack Obama for his signature. The Transportation Department had set Friday as the day the Highway Trust Fund would run out of reserves and told states they could expect an average 28 percent reduction in federal aid. The fund relies primarily on gasoline and diesel fuel taxes that haven’t been increase in two decades. Commenting on the
    Read More

Highlighted Content