A new report from two pro-transit groups, the Frontier Group and the Transit Center, argues that allowing employers to deduct parking costs from their income when calculating their profits (and, thereby, their taxes) represents a $7 billion subsidy to driving. This subsidy, the report claims, adds significantly to highway congestion.
Baloney. First of all, just like providing office space to office workers and factory space to factory workers, providing parking is a cost of doing business. No one would argue that employers should charge their employees rent for the office or factory space they use. Why should employers charge for parking space?
Second, even if this were a subsidy, it has nothing to do with traffic congestion. The report claims that ending the tax break would reduce auto commuting by 2 percent. That’s probably high: just ending the tax break wouldn’t necessarily cause all employers to begin to charge for parking. But even if the number is accurate, the authors clearly don’t understand how congestion works.
