[Congressional Record Volume 143, Number 51 (Friday, April 25, 1997)]
[Senate]
[Pages S3729-S3730]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. SNOWE:
  S. 655. A bill to amend title XIX of the Social Security Act to 
require States to adopt and enforce certain guardianship laws providing 
protection and rights to wards and individuals subject to guardianship 
proceedings as a condition of eligibility for receiving funds under the 
Medicaid Program, and for other purposes; to the Committee on Finance.


        the guardianship rights and responsibilities act of 1997

 Ms. SNOWE. Mr. President, today I introduce a package of three 
bills which will have a significant impact on the lives of American 
families.

  The first bill I am reintroducing today provides a tax credit for 
families caring for a relative who suffers from Alzheimer's disease. 
Today, ``Alzheimer's'' is a household term. But it was not always so. 
For many years, victims of Alzheimer's disease and their families 
struggled in isolation against this illness. However, President 
Reagan's poignant disclosure in 1994 that Alzheimer's disease was 
attacking him as he entered the ``twilight years'' of his life captured 
the collective heart of our Nation, and brought new attention to this 
devastating disease. We have come a long way from when I first came to 
Congress over 18 years ago, when there was not a single piece of 
legislation devoted to Alzheimer's disease. Thankfully, that has 
changed.
  Alzheimer's disease is now the most expensive uninsured illness in 
America. The financial costs are staggering. Alzheimer's will consume 
more of our national wealth--approximately $1.75 trillion--than all 
other illnesses except cancer and heart disease. The number of 
Americans affected by Alzheimer's is rising and will continue to rise 
dramatically, from 4 million today to over 14 million by the middle of 
the 21st century.
  In addition to the significant financial costs related to caring for 
a family member with Alzheimer's disease, there is also a tremendous 
emotional cost as well. It is a cost born by the millions of spouses, 
children, relatives, and friends of Alzheimer's victims who see their 
loved ones slowly overwhelmed by the disease.
  We can, however, lessen both the emotional and financial costs of 
this disease by passing the bill I am reintroducing today which will 
provide some relief to Alzheimer's patients and their families. My bill 
would allow families to deduct the cost of home care and adult day and 
respite care provided to a dependent suffering from Alzheimer's 
disease.
  The second bill I am reintroducing today will strengthen the 
dependent care tax credit and restore Congress' original intent to 
provide the greatest benefit of tax credit to low-income taxpayers. My 
legislation expands the dependent care tax credit, makes it applicable 
for respite care expenses, and makes it refundable.
  The increase in women entering the work force and the aging 
population have brought a corresponding increase in the need for both 
child and elder care. Expenses incurred for such care can significantly 
strain a family's budget. In 1993, full-time child care costs averaged 
approximately $4,000. Managing these costs is difficult for many 
families, but is exceptionally burdensome for those in lower income 
brackets.

[[Page S3730]]

  In 1976, Congress enacted the dependent care tax credit to help low- 
and moderate-income families alleviate the burden of employment-related 
dependent care. Over the years, the DCTC has provided significant 
Federal assistance to millions of families with child and adult 
dependent care expenses.
  Under current law, parents can deduct up to $2,400 annually for 
employment-related child care expenses for one children, and up to 
$4,800 for two or more children. Parents can deduct an amount equal to 
30 percent of their child care expenditures if they have earnings below 
$10,000, with the percentage decreasing on a sliding scale to 20 
percent if their income is above $28,000. The credit is nonrefundable, 
meaning that an individual can only receive the credit if he or she 
pays taxes.
  Unfortunately, the value of the dependent care tax credit for low- 
and moderate-income families has eroded in recent years. This is 
largely due to the lack of inflationary indexing and refundability.
  The Tax Reform Act of 1986 provided for inflationary indexing of all 
the basic provisions of the Internal Revenue Code that determine tax 
liability except for DCTC. As a result, fewer and fewer families with 
incomes low enough to take advantage of the maximum credit amount, 30 
percent, have any tax liability.
  The result is a shift in DCTC benefits away from low-income families 
and toward moderate-income families. Fewer and fewer low-income 
family's annual income reach the tax threshold necessary to receive the 
tax credit; and those low-income individuals who do reach the threshold 
lose out on the maximum credit available. Therefore, rather than 
helping low-income families with dependent care expenses, which was 
Congress' original intent, the DCTC is evolving into assistance for 
less needy middle-income families.
  I believe it is critical to get the DCTC back on track helping those 
families most in need in our country. If we do not address these issues 
now, each year increasing tax thresholds will prevent more and more 
low-income individuals from benefiting from the DCTC.
  The legislation I am reintroducing would make the adjustments 
necessary to restore this important benefit to low-income individuals 
and families. It indexes the DCTC to inflation, and makes it refundable 
so that those who do not reach the tax thresholds still receive Federal 
assistance for their dependent care expenses.

  My legislation, however, goes even further to help families 
struggling with dependent care expenses. Recognizing the realistic 
costs of dependent care, my bill raises the DCTC sliding scale from 30 
to 50 percent of work-related dependent care expenditures for families 
earning $15,000 or less. The scale would then be reduced by 1 
percentage point for each additional $1,000 more of income, down to a 
credit of 20 percent for persons earning $45,000 or more.
  Finally, this legislation expands the definition of dependent care to 
include respite care, thereby offering relief from this additional 
expense. A respite care credit would be allowed for up to $1,200 for 
one qualifying dependent care and $2,400 for two qualifying dependents. 
The credit for respite care expenses would be available regardless of 
the caregiver's employment status.
  Congress intended the dependent care tax credit to help low- and 
moderate-income families manage the costs of dependent care assistance 
which is vital to so many families' economic livelihood. However, each 
year that we do not address the issues of inflationary indexing and 
refundability, we deny those very families assistance, and, instead, 
help families with greater financial means.
  The third bill I am reintroducing today is the Guardianship Rights 
and Responsibilities Act of 1997, which establishes a bill of rights 
for adults who, because of physical or mental incapacity, become wards 
of the courts.
  Wards are individuals whose legal rights, decisionmaking authority, 
and possessions have been transferred to the control of a guardian or 
conservator based on a judgment that the person is no longer capable of 
handling these affairs. This legal system severely limits an 
individual's personal autonomy and has considerable problems and 
widespread abuses. Horror stories abound about guardians who force 
unnecessary nursing home care, embezzle assets or otherwise abuse their 
wards.
  The Guardianship Rights and Responsibilities Act of 1997 would 
require States to adopt and enforce laws to provide basic protection 
and rights to wards as a condition of receiving Federal Medicaid funds. 
It would assure due process protections such as counsel, the right to 
be present at their proceedings, and to appeal decisions. Also required 
would be: Clear and convincing evidence to determine the need for a 
guardianship; adequate court monitoring; and standards, training, and 
oversight for guardians.
  This legislation will help to protect the most vulnerable elderly and 
disabled from exploitation, and will help to assure them the highest 
possible autonomy. I hope my colleagues will join me in supporting 
these important bills.
                                 ______