Trading in transit cards - entrepreneurial spirit alive & well in Wash DC
Posted on Mon, 2007-04-23 23:44
The Washington Post reports (Apr 23) that the entrepreneurial spirit is alive and well among the bureaucrats of Washington DC, even at the IRS. They've been trading transit vouchers like crazy - to the tune of at least $17m, probably much higher according to the Government Accountability Office GAO).
Transit vouchers called Metrocheks are designed to encourage WDC workers to ride the Metrorail or bus system by providing free rides up to $105/month. They are a tax-free fringe benefit, and are paid for by employers - in practice almost entirely by federal government departments and agencies, wanting to earn 'green' brownie points for encouraging transit use.
The civil servants have been taking the vouchers, even auctioning them on eBay, selling them by word of mouth and at the entry to busy rail stations, while continuing to drive their cars to work - often to free parking spaces in federal buildings.
The GAO monitored three days of eBay auctions and reports 58 people conducting sales in that period. All those checked were federal employees.
Metrocheks are a stored value card with a magnetic stripe for use at the turnstiles of the Metrorail system and on DC buses. They sell at a discount off their face value of course but produce some handy extra income to federal employees.
We just went to eBay and there's a guy selling $100 of Metrocheks who has three bids, the highest so far $65.
He writes: "I am selling $100 of metro checks--three $30 and one $10 metro check fare cards. They are brand new and unused. I will ship them to your confirmed Paypal address via Priority Mail (with insurance), so if you're in the DC area you should have them in just a day or two. Check out my feedback--you can bid with confidence. Let me know if you have any questions.
Trade in Metrocheks is technically illegal but, like all efforts to suppress trade, very difficult to police.
As in any trade both parties benefit. The workers issued the vouchers value them less than those they sell them to, while those who buy them get their travel at a discount. If the cards were unsold they'd still cost their employer the face value so the employer can claim to be 'green' and isn't worse off financially, and their employees through the trade are traveling by their preferred mode - the car.
The report produced these examples:
- a USDOT man receiving the maximum amount of transit subsidies since 2004 who gets a ride with a neighbor or slugger and otherwise rides his motorcycle - sold $1,080 of Metrocheks on Ebay
- a couple working at the Department of Defense each received Metrochek cards but drive to work together - they sold 61 lots of Metrocheks worth $6k on eBay
- the IRS worker who had got the Metrochek cards and also a free parking space at work since 2004 who sold cards for $930
- a Department of Commerce worker who resigned in 2001 but kept getting the cards in the mail through 2006 and admitted making about $4k off her commerce in Metrocheks
- The Coast Guard and Treasury department were found to be sending cards out to people who never worked at either agency, people who had apparently filled in Metrochek application forms on the web AS IF they worked there and started getting them in the mail. At the Treasury Department 25 non-employees were found to be working this scam.
Your taxes at work - encouraging entrepreneurship in Washington DC!
TOLLROADSnews 2007-04-23
Transit vouchers called Metrocheks are designed to encourage WDC workers to ride the Metrorail or bus system by providing free rides up to $105/month. They are a tax-free fringe benefit, and are paid for by employers - in practice almost entirely by federal government departments and agencies, wanting to earn 'green' brownie points for encouraging transit use.
The civil servants have been taking the vouchers, even auctioning them on eBay, selling them by word of mouth and at the entry to busy rail stations, while continuing to drive their cars to work - often to free parking spaces in federal buildings.
The GAO monitored three days of eBay auctions and reports 58 people conducting sales in that period. All those checked were federal employees.
Metrocheks are a stored value card with a magnetic stripe for use at the turnstiles of the Metrorail system and on DC buses. They sell at a discount off their face value of course but produce some handy extra income to federal employees.
We just went to eBay and there's a guy selling $100 of Metrocheks who has three bids, the highest so far $65.
He writes: "I am selling $100 of metro checks--three $30 and one $10 metro check fare cards. They are brand new and unused. I will ship them to your confirmed Paypal address via Priority Mail (with insurance), so if you're in the DC area you should have them in just a day or two. Check out my feedback--you can bid with confidence. Let me know if you have any questions.
Trade in Metrocheks is technically illegal but, like all efforts to suppress trade, very difficult to police.
As in any trade both parties benefit. The workers issued the vouchers value them less than those they sell them to, while those who buy them get their travel at a discount. If the cards were unsold they'd still cost their employer the face value so the employer can claim to be 'green' and isn't worse off financially, and their employees through the trade are traveling by their preferred mode - the car.
The report produced these examples:
- a USDOT man receiving the maximum amount of transit subsidies since 2004 who gets a ride with a neighbor or slugger and otherwise rides his motorcycle - sold $1,080 of Metrocheks on Ebay
- a couple working at the Department of Defense each received Metrochek cards but drive to work together - they sold 61 lots of Metrocheks worth $6k on eBay
- the IRS worker who had got the Metrochek cards and also a free parking space at work since 2004 who sold cards for $930
- a Department of Commerce worker who resigned in 2001 but kept getting the cards in the mail through 2006 and admitted making about $4k off her commerce in Metrocheks
- The Coast Guard and Treasury department were found to be sending cards out to people who never worked at either agency, people who had apparently filled in Metrochek application forms on the web AS IF they worked there and started getting them in the mail. At the Treasury Department 25 non-employees were found to be working this scam.
Your taxes at work - encouraging entrepreneurship in Washington DC!
TOLLROADSnews 2007-04-23