The Tax Increase Prevention Act of 2014, signed into law on December 19, 2014, retroactively increased the tax-free mass transit benefit from $130 to $250 for the 2014 calendar year.
But, I feel a little used. This happens each year. The benefit is treated as a bargaining chip inside the mess that is our Congress. It is used as a way for elected officials to say, “Hey, look what we did for you. We got you $250 of tax-free transit.” Or, in non-transit states, “we didn’t raise your taxes because we found some money in a place you wouldn’t look anyway. Don’t forget to vote in November.”
The sad part is this is just for 2014. In 2015, now, we go back to $130.
Why it is bounces back and forth makes very little sense seeing it doesn’t really cost a whole lot.
From the House Ways and Means Committee,
According to JCT , this provision would reduce revenues by $10 million over 2015-2024.
$10 million over 10 years. That’s doesn’t sound like a lot of money. But, it is Congress, why should it make sense.