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closetbiker
03-23-03, 05:43 PM
Boston Globe

Drivers get the tax breaks, cyclists don't; congressman wants to change that

By Matthew Daly, Associated Press, 3/22/2003 19:42

WASHINGTON (AP) It's a paradox that has long puzzled cyclists.

Commuters who burn a precious resource oil to drive to work get a tax break.
Those who use their own muscle power to pedal bikes to the office do not.

With the war in Iraq and gas prices soaring, cycling advocates think they
have found an answer that both parties can embrace: give bikers a tax break.

''Why should we discriminate in terms of tax treatment for somebody who is
not polluting the air, not causing traffic congestion and not taking away
from our petroleum reserves?'' asked Rep. Earl Blumenauer, D-Ore.

Biking to work is cheaper than driving or taking a bus, he added, ''but it's
not free.''

Blumenauer, 54, founder and chairman of the bipartisan Congressional Bike
Caucus, has biked to his Capitol Hill office for years.

Now he hopes to give cycling commuters the same tax advantages available to
those who drive or use mass transit.

Currently, employers may offer a commuting tax-exemption benefit totaling
$180 for qualified parking plans or $100 for transit and van-pool expenses.
The Bike Commuter Act, co-sponsored by Rep. Mark Foley, R-Fla., would extend
those benefits to workers who commute by bicycle.

With gas prices now at $2 per gallon or even higher, ''the notion of energy
conservation should have some broader appeal,'' Blumenauer said.

Budget officials estimate the bike bill could cost as much as $114 million a
year in lost revenue a fraction of the $3.7 billion annual cost of tax breaks
for drivers and mass transit users.

Cycling long has been popular in Oregon, where hundreds of miles of bike
boulevards, paths and lanes take commuters and casual cyclists through leafy
neighborhoods, along the Columbia River and across bridges spanning the
Willamette River.

But cycling advocates say passion for pedaling has gone national.

According to the League of American Bicyclists, nearly 1 million U.S. workers
commute regularly by bicycle. The federal Bureau of Transportation Statistics
lists bicycles second only to cars as a preferred mode of transportation.

Biking's growing popularity was evident during a National Bike Summit this
month in Washington. Cyclists from 47 states converged on the city for three
days; it was the biggest turnout in the event's three-year history.

The summit's popularity coincides with growth of the bike caucus. The
bipartisan group, established in 1996, now includes more than 100 House
members. The Senate has started its own group with more than a dozen members
so far.

Rep. Jim Oberstar, D-Minn., a caucus member, calls a cycling a key part of
his life.

''It's my relaxation, it's my personal therapy and it's my fitness,'' said
Oberstar, 68.

It also is good public policy, he says. In the past decade, spurred largely
by the bike lobby, Congress has more than quadrupled spending on bike
projects to nearly $2 billion. That has helped build almost 20,000 miles of
bike trails, put bike racks on buses and establish biker safety programs
nationwide.

:beer:

Chris L
03-23-03, 08:08 PM
Personally, I'd much rather see all of those tax breaks handed out abolished point blank and just let people pay the true cost of whatever they choose to do.

closetbiker
03-23-03, 08:12 PM
Wouldn't it be nice if the cost of building roads be directly born by those who use them, in the degree they use them?

Pete Clark
03-23-03, 08:20 PM
We are all on the same page, here. More cycling, less driving.

(Less potholes, too. :eek: I digress!)

Guest
03-24-03, 06:06 PM
Hey- I need that tax break! Come April 15th, I'm gonna be hurting big time...

I read this same article in the Chicago Tribune today. I'm hoping that now they've featured this article, we'll see something about it at some point in the future in Chicago. I'm keeping my fingers crossed for sure.

Koffee

John E
03-24-03, 08:45 PM
Originally posted by closetbiker
Wouldn't it be nice if the cost of building roads be directly borne by those who use them, in the degree they use them?

I am with you on this one, c'biker. In the U.S., personal motor vehicles enjoy a huge hidden subsidy, distorting and obscuring the natural pricing cues which would otherwise encourage carpooling, bicycling, public transit, fuel-efficient vehicle purchases, etc.

steversk
03-24-03, 09:20 PM
Just to play devil's advocate, how would they verify that you commute by bicycle? I think this is a great idea, but I worry that it would be taken advantage of. Suddenly, there would be all sorts of "claimed" bicycle commuters. I can imagine people claiming that they commute since their children ride their bikes to school.
I commute to work 2 - 3 times a week and there are costs associated with bicycle commuting (i.e. new tubes, tires, tune-ups) but it's much cheaper than driving.
It was a little disheartening to see a tax break for people who bought hybrid-electric cars but I didn't get anything for sucking the exhaust of all of the cars on my commute to work.

closetbiker
03-24-03, 09:27 PM
Any kind of break would be nice.

how about distance-based insurance? The more you drive your car, the more you pay. The technology for this is already available, and one insurance company in the States is using it.

Also, a key component of traffic are working commuters, many of whom have cheap or free parking at workplaces. California has pioneered a program called parking cash-out. Subsidized or free parking spaces are "retired" by employers who must compensate employees whose parking privileges are retired. They can then choose to re-purchase parking at market rates or use the money on transit or other options like cycling. Parking cash-out is shifting
behaviours - more people are choosing alternatives when parking cash-out is
available.

Proposing solutions like eliminating parking may satisfy our desire to propose radical solutions to clearly pressing problems, but they won't happen in the real world.

If we want to promote change, we need to propose solutions that we can sell to people for whom cycling is not now a choice or an option. Parking cash-out is a real world solution that has proven effective and represents at least one step forward we can take in our communities.

Guest
03-24-03, 09:59 PM
Well, to be extreme, they could have us all get bike computers (a complete write off at tax time), then we could keep track of our mileage as proof that we ride our bikes. If Uncle Sam wants to check up on us, all they would most likely have to do is stop by work and ask to see the bike. No bike= audit of some sort.

I think what should be the most likely scenario is if they have us show proof of the bike purchase, and grandfather in all bikes before the legislation passed and give us a tax break on the bike purchase. Then anytime we purchase anything going towards the bike, as long as we keep the receipts, we can get additional tax breaks. Now, if someone decides to go overboard and get all kinds of extras, rebuilts, etc. way beyond what's necessary for work, then that's up to them to pay. At this point, the bike becomes a recreational hobby, and then they should allow us to take exemptions under the hobby tax breaks.

That's what I would hope to see.

Koffee

Chris L
03-25-03, 12:01 AM
Originally posted by Koffee Brown
Then anytime we purchase anything going towards the bike, as long as we keep the receipts, we can get additional tax breaks. Now, if someone decides to go overboard and get all kinds of extras, rebuilts, etc. way beyond what's necessary for work, then that's up to them to pay.

Too much of a grey area. What happens to someone like me who uses my bike for both transport and recreation? Are those spanky new components I bought for added reliability on the commute, or so I can go out and slaughter Springbrook on the weekend?

As I said before, I don't think anybody should get tax breaks of any kind for their transportational choices. Tax breaks aren't going to get a heap of people to suddenly take up cycle-commuting. It's already significantly cheaper than driving (even allowing for existing subsidies), and nobody's taken it up yet.

MediaCreations
03-25-03, 12:11 AM
I hate to brag - but as my job involves cycling - I can claim all my cycling expenses. Yippee!!:D

closetbiker
03-25-03, 06:18 AM
Originally posted by Chris L
I don't think anybody should get tax breaks of any kind for their transportational choices. Tax breaks aren't going to get a heap of people to suddenly take up cycle-commuting. It's already significantly cheaper than driving (even allowing for existing subsidies), and nobody's taken it up yet.

I think you're right, but govenments encourage or discourage behaviour through tax breaks. They can help a bit.

All I want is to not have to pay more (since I subsidize roads through general revenue taxation) than I have to in taxes. That's what I like about the parking stall cash outs and distance based insurance.

Guest
03-25-03, 07:34 AM
America is built on taking tax breaks- I am working on my taxes right now and using the tax laws to my advantage.

As I said before, you get the tax break for using the bike to get to your place of business, but you also can take subsequent tax breaks for your recreational use for the hobby tax exemptions. The hobby tax exemptions in the US are allowed- my bike costs are being written off right now. It's just that you get one more tax break, that's all.

I'm all for it. I spend a ton on my bike, and I use it to get back and forth to work every day. I save the environment too- I should get a reward for that!

Koffee

Chris L
03-25-03, 03:09 PM
Originally posted by closetbiker
I think you're right, but govenments encourage or discourage behaviour through tax breaks. They can help a bit.

So why not just abolish the existing driver subsidies?

closetbiker
04-14-03, 01:29 PM
Originally posted by Koffee Brown
America is built on taking tax breaks- I am working on my taxes right now and using the tax laws to my advantage. I spend a ton on my bike, and I use it to get back and forth to work every day. Koffee

from:http://www.bikesatwork.com/cycling-for-profit/food-as-fuel.html
Some years ago, Alan Wayne Scott, a foot courier in Toronto, Canada, realized he was spending a lot on food to do his work, and took his case to Revenue Canada (the Canadian equivalent of the IRS). He made the argument that if he were doing his work in an automobile, he would be able to deduct the cost of gasoline; hence, he should be able to deduct the extra food he was consuming to do his job. After a long, fifteen year battle, he was finally successful.