Silver Lining in Fiscal Deal for Commuters

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MONROE STREET PARKING LOT IN CHICAGO HOLDS 2,7...

MONROE STREET PARKING LOT IN CHICAGO HOLDS 2,700 CARS FOR COMMUTERS AT LAKE SHORE DRIVE. NEW CONSTRUCTION IS UNDERWAY… – NARA – 556196 (Photo credit: Wikipedia)

While most of the conversation on the recently passed fiscal cliff deal has focused on large-ticket items, such as tax rates, tax breaks, and unemployment benefits, the deal did address and enhance a subsidy for commuters, which is a silver lining for the green movement.

Over the past year, the tax code has provided a subsidy for commuters who drive to work. Under this provision, an employer could cover up to $240 per month in parking expenses tax free for drivers.  Conversely, commuters who took public transportation were only covered for up to $125 of their monthly expenses.  Under the new fiscal cliff deal, the two benefits are set at equal levels, retroactively for 2012 and for 2013.

This provision definitely is a victory for the green movement, which stresses the need to reduce gas consumption and the number of cars on the road.  Also, the argument to increase the benefit to those who take public transportation brings to light the realization that subsidized parking is a distortion because there is a cost involved to provide and maintain parking facilities for drivers, thereby causing an adverse impact on land use.

Hopefully by equalizing the benefit for parking and taking public transportation, more people will opt for the latter.  Discussions on programs such as these now entertain the possibility that commuters who opt for the parking subsidy would be allowed to take the cash benefit.  The goal here is to encourage car or van pooling, which still goes a long way to reduce the number of automobiles on the road on any given day.  Also some jurisdictions are considering plans to increase the cash benefits for commuters who bike to work.

Given that transportation is the second largest household expense for America’s workers, along with the fact that most commuters drive to work alone, provisions to increase commuter subsidies for public transportation and to provide cash benefits for carpooling are very important.  They provide strong incentives for people to adopt behaviors that protect the environment, reduce our carbon footprint and successfully live green, be green.

Sources for this Article:
http://www.washingtonpost.com/blogs/wonkblog/post/how-congress-shapes-your-commute/2011/10/19/gIQA7GHOxL_blog.html
http://odenton.patch.com/articles/marc-commuters-could-benefit-from-fiscal-cliff-deal

 

 

Green Initiatives Threatened by Looming Fiscal Cliff

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Tax

Tax (Photo credit: 401(K) 2012)

Any discussion of the looming fiscal cliff must address the impact on green initiatives as any budget cuts or tax increases will adversely impact the efforts of both families and businesses to go green.  With the realization that compromises will have to be made on both sides across the aisle, it remains important that our elected representatives focus on the fact that governmental spending need to include investment in human and physical matters that will pay dividends in the future.  A green economy qualifies for such investment because its tenets lead to a healthier society and an environmentally friendly world.

Several of the tax incentives for living green were derived from the Bush era tax cuts, which are scheduled to expire at the end of this year if not renewed by Congress, thus creating the looming fiscal cliff.  A few notable ones to mention are as follows:

  • The residential energy efficiency credit.  This credit is given to homeowners who purchase high energy-efficient appliances and home improvements.  Many Americans have received reductions in tax liability through the use of these credits while at the same time making their homes more energy-efficient.
  • The American Opportunity Credit.  This credit provides a $2500 tuition tax credit, thereby enabling more people to go to college.  This opportunity directly affects the potential pool of trained people needed in the research and development of green technology and the direct training needed for operation of green industries.
  • The payroll tax credit.  Taxpayers will see a decrease in their take home checks if this credit expires, thus impacting their ability to exercise healthier choices in the purchase of foods and organic products.
  • The production tax credit (PTC).  This credit subsidizes wind power by 2.2 cents a kilowatt hour.  This is important to states and localities working hard to establish wind power as an alternative energy source.

As the discussion and bargaining proceed over the next few weeks, it is important that we advocate our positions on green initiatives which will be affected by budget decisions.  Now is the time to contact your congressmen by phone or email and state your position on these issues.  Today’s investment of time will reap tomorrow’s dividends.  Let’s live green, be green.

Sources:

http://online.wsj.com/article/SB10001424127887324073504578104464153878672.html?mod=rss_economy

http://topics.nytimes.com/top/news/business/energy-environment/wind-power/index.html

 

Plastic Bag Bans Heat Up Local Politics

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A rippling effect of the green movement has witnessed many cities either imposing taxes to consumers on plastic bags or banning them altogether. This movement has triggered a change in behavior for many consumers and businesses. Some establishments have responded by offering for sale customized reusable cloth bags that not only are trendy, but also offer advertising for companies. Some shoppers now opt out of plastic bags and request paper bags.

San Francisco was the first city to ban plastic shopping bags back in 2007. Since then, other cities have followed—Los Angeles, Seattle, Westport, Connecticut and the entire state of Hawaii. Other jurisdictions, including Washington, D.C., find local councils embroiled in debates over taxes on plastic bags.

Unfortunately, some trade associations refuse to accept the fact that plastic bags are harmful to the environment because they take up valuable space in landfills and litter streets, streams and shorelines. One organization of plastic manufacturers now argues that the ban of plastic bags could threaten more than 30,000 manufacturing jobs in the United States. Donna Dempsey, the spokeswoman for the American Progressive Bag Alliance, even states that “the plastic bag has gotten a bad rap”. Dempsey goes on to say that 90% of consumers reuse plastic bags, that these bags require less energy to produce than paper bags and that they take up less space in landfills.

This is a very touchy issue. While no one wants to see any manufacturing sector decrease in size or disappear, one has to wonder why the experts in the plastics field would rather concentrate on portraying as a myth the hard facts about the negative impact of plastic on the environment as opposed to making a better product. We have witnessed other industries being forced to make drastic changes to stop pollution. For example, most localities have had to overhaul public transportation to provide clean buses and electrically powered trains. The auto industry has been forced to upgrade vehicles to use cleaner fuels. These changes actually have stimulated the economy in terms of providing new educational opportunities, jobs in research and development and employment implementing new technology in factories.

Let’s stop the politics here. Plastic bags are harmful to the environment. As stewards of this planet, let’s stand behind the movement to adopt alternatives to plastic bags. This movement begins with our refusal to use plastic bags. Let’s shop green, live green, be green.