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Issue 417 May 26, 2003
If a new City Council bill is enacted, more commuters could reap the benefits of a federal pre-tax mass transit program (know in NYC as TransitChek). The bill, sponsored by Speaker Gifford Miller, would increase participation in TransitChek by requiring companies with 50 or more employees to offer the program, which is currently voluntary. TransitChek takes advantage of federal legislation that allows employees to use up to $100 of pre-tax income per month for transit. According to Miller, this translates into an annual savings of $288 for the average New Yorker. In order for employees to receive TransitChek, their employers must sign up for the program. Unfortunately, local companies have not yet used the program to its potential— only about 10% of MTA daily riders currently have TransitChek. The Daily News ran an editorial supportive of the TransitChek program in general, but wary of Miller’s bill. The News said that the bill could increase "administrative burdens" of small companies. As a seven-person organization that offers TransitChek, we would argue that the program requires few additional administrative duties, and offers significant savings to employees and employers alike. The bill will be introduced in the Council on May 28.
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