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Through the Bicycle Commuter Act, participating US firms can offer their employees up to twenty dollars per month if the employee commutes into work frequently on a bicycle and doesn't obtain any other transportation reimbursement benefits. Thats $240 in the pocket of the year-round, dedicated American bike commuter, assuming that his or her employer is on board with the Bicycle Commuter Act. An employee that grosses anywhere from $34,000 to $82,400 annually pays approximately 25% in federal income taxes, which means that the government forfeits up to about $60 per commuter in this tax bracket to support the employer incentivize this alternate form of transportation through a tax-free benefit (note: Im not an accountant along with the actual tax rate just isn't a full 25% of the gross salary, so please excuse my back-of-the-envelope calculation). For comparison, the US federal government funded the Car Allowance Rebate System program, or Cash for Clunkers, in 2009 with $3 billion to encourage drivers of old, fume-exuding cars to upgrade to new, fuel-efficient automobiles to reduce pollution. The estimated cost of the program per individual was $2,000.
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