The latest version of the new tax plan agreed by the Republicans and announced on Friday you just will not like it if your workplace is far from home. As is known, at present employers receive a certain tax incentive, having the opportunity to deduct from corporate tax the cost of compensating workers for the cost of travel to work. Suppose you live in New Jersey, and work in New York. To get to work you should use the metro, the railway, the lucky ones ride on your car. At the same time, employers usually pay the monthly embezzlement of employees for road or parking. The amount of compensation is up to $ 255 per month, and from January 1, 2018, it was to increase to $ 260.
However, the new tax plan, which significantly reduces the level of corporate tax, deprives employers of the right to deduct the costs of compensation for employees, and, accordingly, makes it unprofitable to hire employees who live far from their jobs. In other words, lawmakers believe that additional tax benefits for businesses and entrepreneurs are not needed.
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Employers will not be able to pay compensation even for using a bicycle for employees, which is about $ 20 a month. However, with bicyclists it is easier. They will be able to receive compensation in the form of paying for new tires, a helmet and even a new bicycle.
The American Association for Public Transport has already expressed its concern that the number of passengers can be significantly reduced, because to spend a pretty decent amount of money to get to the workplace will not be able to and not all. Some, perhaps, will be forced to leave and look for work closer. And employers, experts say, will simply stop offering compensation, which will also be reflected in the dynamics of labor market development.
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