How can we address the underfunding of transit? [2]

At the Federal and Provincial Levels

The federal and provincial governments need to recognize their responsibilities in supporting public transit. Between these two levels of government, a stable, long-term funding mechanism could be created through the redirection of fuel tax revenues and the tax exemption of employer-provided transit benefits

The Federal Government collects 4.6 billion dollars every year from fuel tax revenues, but spends only 400 million on transportation, mostly on highways, and nothing on urban public transit

A redirection of 3 cents per litre of fuel excise tax by the federal government, matched by an equivalent amount by the provincial government, would fund over $2 billion dollars worth of improvements to public transportation each year

80% of commuters enjoy subsidized parking benefits through their employer, but virtually no employees receive transit benefits, and transit benefits would be taxable

If tax-exempt transit benefits were made possible, transit use among employees offered this benefit would increase 35 to 60%; the resulting reductions in emissions, parking costs, traffic congestion alone would mean a savings of $3 for every dollar of lost tax revenue.