The latest version of the new tax plan, agreed upon by Republicans and announcement Friday, you won’t like if your work place is far away from home. As you know, currently employers receive a tax incentiveof having the ability to deduction of corporate tax expenses for compensation to employees of the cost of travel to work. Suppose you live in new Jersey but work in new York. To get to work, you need to use the metro rail, the lucky ones go on the car. While employers typically pay a monthly waste workers on the road or Parking lot. The compensation is up to 255 USD per month, and from 1 January 2018 was to increase to $ 260.
However, the new tax plan, significantly reducing corporate tax rates, deprives employers of the right of deducting the cost of workers ‘ compensation of travel, and, accordingly, makes disadvantageous the employment of employees living far from the place of work. In other words, the lawmakers believe that additional tax incentives to businesses and entrepreneurs is not needed.
Employers will not be able to pay compensation even for using a bike for employees, which is about $ 20 per month. However, cyclists easier. They will be able to receive compensation in the form of payment of a new tire, helmet and even a new bike.
The American Association for public transport has already expressed its concern that the number of passengers can be significantly reduced, after spending quite a decent amount to get to the workplace and want. Some may be forced to resign and look for a job closer. And employers, experts say, simply cease to offer compensation, which also appears on the development dynamics of the labour market.
