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# Under current federal law, employers are allowed to offer

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VP
Joined: 03 Apr 2007
Posts: 1339

Kudos [?]: 864 [0], given: 10

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

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28 May 2008, 19:52
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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

Kudos [?]: 864 [0], given: 10

Director
Joined: 23 Sep 2007
Posts: 782

Kudos [?]: 247 [0], given: 0

Re: CR - mass transit [#permalink]

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28 May 2008, 20:01
D

Kudos [?]: 247 [0], given: 0

Manager
Joined: 11 Apr 2008
Posts: 153

Kudos [?]: 68 [0], given: 0

Schools: Kellogg(A), Wharton(W), Columbia(D)
Re: CR - mass transit [#permalink]

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28 May 2008, 21:29
D

Kudos [?]: 68 [0], given: 0

Manager
Joined: 19 May 2008
Posts: 162

Kudos [?]: 13 [0], given: 0

Location: Mumbai
Re: CR - mass transit [#permalink]

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28 May 2008, 21:47
D - what is the OA?

Kudos [?]: 13 [0], given: 0

CEO
Joined: 17 May 2007
Posts: 2947

Kudos [?]: 674 [0], given: 210

Re: CR - mass transit [#permalink]

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28 May 2008, 22:17
Straight D, it is the only one that even remotely addresses the question posed.

Kudos [?]: 674 [0], given: 210

Manager
Joined: 28 Apr 2008
Posts: 127

Kudos [?]: 85 [0], given: 0

Re: CR - mass transit [#permalink]

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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

Kudos [?]: 85 [0], given: 0

Director
Joined: 14 Aug 2007
Posts: 726

Kudos [?]: 220 [0], given: 0

Re: CR - mass transit [#permalink]

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29 May 2008, 05:03
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

Clearly.. D.

Kudos [?]: 220 [0], given: 0

VP
Joined: 03 Apr 2007
Posts: 1339

Kudos [?]: 864 [0], given: 10

Re: CR - mass transit [#permalink]

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31 May 2008, 09:09
OA is D

Kudos [?]: 864 [0], given: 10

Non-Human User
Joined: 01 Oct 2013
Posts: 10128

Kudos [?]: 270 [0], given: 0

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

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24 Jul 2016, 03:06
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Kudos [?]: 270 [0], given: 0

Re: Under current federal law, employers are allowed to offer   [#permalink] 24 Jul 2016, 03:06
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