[Congressional Record Volume 143, Number 130 (Thursday, September 25, 1997)]
[Extensions of Remarks]
[Pages E1862-E1863]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            THE DEPENDENT CARE TAX CREDIT REFUNDABILITY ACT

                                 ______
                                 

                       HON. CONSTANCE A. MORELLA

                              of maryland

                    in the house of representatives

                      Thursday, September 25, 1997

  Mrs. MORELLA. Mr. Speaker, quality child care is critically important 
to working families in every economic situation. Yet many working 
parents today simply cannot afford to pay the increasing costs of child 
care. Furthermore, affordable child care is critical to the success of 
moving women from welfare to work.
  In the last Congress, I introduced legislation, H.R. 4154, to make 
the Dependent Care Tax Credit [DCTC] refundable. This bill was included 
in the Women's Caucus Economic Equity Act.
  Today, along with Congressman Tom Allen, I am introducing an updated 
version of the same legislation. This legislation would help working 
families obtain high quality care. A major source of Federal support 
for families who rely on child care and dependent care is

[[Page E1863]]

the Dependent Care Tax Credit. This tax credit is available on a 
sliding scale basis to taxpayers incurring expenses relating to the 
care of a child under age 13, a disabled spouse, or any qualifying 
dependent, many of whom are cared for by family caregivers.
  Unfortunately, the tax does little for the working poor, many of whom 
are women working outside the home who are responsible for dependent 
family members but who do not make enough to pay taxes. Because the tax 
credit is not refundable, workers who owe little or no taxes do not 
receive the amount for which they would otherwise be eligible. This 
legislation would expand the current Dependent Care Tax Credit to offer 
increased benefits for lower and middle-income families, as well as 
make it refundable to low-income families who owe little or no income 
tax and would normally be unable to benefit from a tax credit.
  The Dependent Care Tax Credit is also critically important to those 
who provide respite care for ill or disabled dependents. Such care is 
very expensive, and making the DCTC refundable would help caregivers 
provide for their dependents. I urge my colleagues to join me in 
forwarding this important legislation.

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