[Congressional Record Volume 140, Number 142 (Tuesday, October 4, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: October 4, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
               THE CONSUMER ACCESS TO LONG- TERM CARE ACT

                                 ______


                           HON. DAVID DREIER

                             of california

                    in the house of representatives

                        Tuesday, October 4, 1994

  Mr. DREIER. Mr. Speaker, today I am introducing H.R. 5162, to 
increase access to long-term care for seniors. This legislation ends 
the tax penalties imposed on older Americans who try to access the 
equity they have worked to build up in their homes and retirement 
funds.
  Roughly 75 percent of senior citizens over the age of 65 own their 
own homes, with an estimated $1.1 trillion in home equity. Most older 
Americans have additional savings tied up in IRAs and other pension 
funds. Unfortunately, they are often unable to access these critical 
resources without suffering severe tax penalties.
  H.R. 5162 completely eliminates the capital gains tax penalty for the 
sale of certain assets used for long term care services. It allows 
seniors to make tax-free withdrawals from Individual Retirement 
Accounts [IRAs] and other pension funds to pay for qualified long term 
care expenses. It also allows seniors to take an unlimited capital 
gains exclusion on the sale of a residence where the proceeds are 
rolled over into a qualifying long term care fund or used for entrance 
into a continuing care retirement community.
  For seniors who do not want to sell their homes, H.R. 5162 eliminates 
many of the restrictions currently imposed on reverse mortgages. Under 
this legislation, seniors will also be able to access their home equity 
through a reverse mortgage program without suffering a loss of 
eligibility from government programs.
  I believe that older Americans who have worked and saved to provide 
for their own care and retirement should not be penalized for their 
responsible behavior by a punitive Tax Code. H.R. 5162 is a critical 
first step in allowing seniors increased access to long-term care 
services.

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