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Under current federal law, employers are allowed to offer

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Under current federal law, employers are allowed to offer  [#permalink]

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New post Updated on: 08 Mar 2018, 08:07
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A
B
C
D
E

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  15% (low)

Question Stats:

80% (01:33) correct 20% (02:01) wrong based on 173 sessions

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Under current federal law, employers are allowed to offer their employees free parking spaces as a tax-free benefit, but they can offer employees only up to $180 per year as a tax-free benefit for using mass transit. The government could significantly increase mass transit ridership by raising the limit of this benefit to meet commuters transportation costs.

The proposal above to increase mass transit ridership assumes that

(A) current mass transit systems are subject to unexpected route closings and delays

(B) using mass transit creates less air pollution per person than using a private automobile

(C) the parking spaces offered by employers as tax-free benefits can be worth as much as $2,500 per year

(D) many employees are deterred by financial considerations from using mass transit to commute to their places of employment

(E) because of traffic congestion on major commuter routes, it is often faster to travel to ones place of employment by means of mass transit than by private

Originally posted by goalsnr on 28 May 2008, 19:52.
Last edited by broall on 08 Mar 2018, 08:07, edited 1 time in total.
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Re: Under current federal law, employers are allowed to offer  [#permalink]

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New post 28 May 2008, 22:17
Straight D, it is the only one that even remotely addresses the question posed.
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Re: Under current federal law, employers are allowed to offer  [#permalink]

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New post 29 May 2008, 04:07
assumes that riders pick mass transit based on tax free benefit options. (financial incentive) So D stands out.

goalsnr wrote:
Under current federal law, employers are allowed to offer their employees free parking spaces as a tax-free benefit, but they can offer employees only up to $180 per year as a tax-free benefit for using mass transit. The government could significantly increase mass transit ridership by raising the limit of this benefit to meet commuters transportation costs.

The proposal above to increase mass transit ridership assumes that



(A) current mass transit systems are subject to unexpected route closings and delays

(B) using mass transit creates less air pollution per person than using a private automobile

(C) the parking spaces offered by employers as tax-free benefits can be worth as much as $2,500 per year

(D) many employees are deterred by financial considerations from using mass transit to commute to their places of employment

(E) because of traffic congestion on major commuter routes, it is often faster to travel to ones place of employment by means of mass transit than by private
Manager
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Re: Under current federal law, employers are allowed to offer  [#permalink]

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New post 01 Sep 2018, 01:45
The author here assumes that raising the free benefit limit in case of mass transportation will lead to an increase in ridership. The author here thinks that financial constraint is the only factor influencing a commuter's decision and this is his assumption.
Option 'D' plugs this gap.
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Re: Under current federal law, employers are allowed to offer   [#permalink] 01 Sep 2018, 01:45
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