CASHING OUT FREE PARKING

Abstract

The income tax exemption of free parking at the work place encourages employees to pay for commuter parking rather than to pay higher salaries. Free parking at work may seem harmless, or even beneficial, however, it indirectly pollutes the air, congests traffic, and wastes energy by inviting commuters drive to work alone. A tax exemption in lieu of free parking would encourage employers to subsidize people, not cars. If employers pay higher salaries rather than pay for parking, many commuters will do their self interest, just what they have been urged to do in the public interest-ride the bus, carpool, bicycle, or walk to work.

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