[Congressional Record Volume 145, Number 25 (Thursday, February 11, 1999)]
[Extensions of Remarks]
[Pages E218-E219]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 FAMILY FRIENDLY TAX RELIEF ACT OF 1999

                                 ______
                                 

                           HON. FRANK R. WOLF

                              of virginia

                    in the house of representatives

                      Thursday, February 11, 1999

  Mr. WOLF. Mr. Speaker, today I am introducing the Family Friendly Tax 
Relief Act of 1999. This legislation will increase the child tax credit 
for children under age 5 to $1,000. I believe this is an important step 
toward easing the tax burden for American families with young children.
  Child development experts agree that a child's interest in learning, 
sense of security, behavior, and curiosity about the world are deeply 
rooted in the child care that he or she receives between the ages of 0-
5. When children get off to a good start in life and have high-quality 
child care (either at home or in a child care program), they have the 
best opportunity to flourish and they have all the necessary tools to 
start school. Children who are cared for well from birth have a 
distinct advantage over those who are in low-quality, over-crowded, or 
under-staffed child care programs or those who come from homes where 
money is scarce and parents are forced to chose between spending time 
with their children or putting food on the table.

[[Page E219]]

  Increasing the tax credit by $500 for children under age 5 will help 
all parents in providing care for their children. Frequently, parents 
of young children lack the income and seniority in their careers that 
parents of older children enjoy, and they often cannot afford high-
quality child care. In addition, child care is more expensive for young 
children than it is for older children and parents of young children 
are sometimes hit with a double whammy: more expensive child care and 
less income to contribute toward the care of their children. 
Unfortunately, many, if not most, working parents have to choose 
between financial security and spending time with their children during 
the important development years of age 0-5.
  Single parent families and families with a stay-at-home parent also 
face financial dilemmas and can experience much hardship associated 
with the fact that they are dependent on one source of income. If the 
employed parent loses his or her job or has a reduction in salary, the 
family's financial security can be wiped out in a matter of days. There 
are also many communities in the United States where cost-of-living is 
so high that it can be nearly impossible to survive on only one income. 
Some single parents have to work two jobs just to make ends meet.
  In addition, parents who choose to sacrifice income in order to stay 
home with their children sometimes have to make other sacrifices based 
on finances that affect their children's living environment, physical 
well-being, or sense of security. More and more parents are facing time 
constraints and financial constraints that make it impossible for them 
to choose the type of child care that they would prefer if given all 
the options.
  Be providing an increase in the child tax credit for young children, 
parents will have the opportunity to keep more of their hard-earned 
incomes for family needs. Having as little as 500 extra dollars a year 
per young child may make a significant difference. Parents who work 
outside the home may use the extra income to enroll their child in a 
child care program that is better matched to their child's needs. Some 
working parents may have the ability to reduce their work hours so that 
they can spend more time with their children. Single parent families or 
families who choose to get by on one income will also have more income 
to help make ends meet.
  While President Clinton has proposed an increase in the child care 
tax credit for children under age 1 (by $250 depending on income), I 
believe that more needs to be done to help parents of young children. 
My legislation goes beyond President Clinton's proposal and will help 
all parents who are struggling with raising their children in an 
increasingly complex, threatening, and busy world. Helping our nation's 
youngest children is the key to ensuring the future of our country.

                                H.R. --

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Family Friendly Tax Relief 
     Act of 1999''.

     SEC. 2. $1,000 CHILD TAX CREDIT FOR CHILDREN UNDER AGE 5.

       (a) In General.--Section 24 of the Internal Revenue Code of 
     1986 (relating to child tax credit) is amended by 
     redesignating subsections (e) and (f) as subsections (g) and 
     (h), respectively, and by inserting after subsection (e) the 
     following new subsection:
       ``(f) $1,000 Credit for Qualifying Children Under Age 5.--
       ``(1) In general.--Subsection (a) shall be applied by 
     substituting `$1,000' for `$500' with respect to any 
     qualifying child who has not attained the age of 5 as of the 
     close of the calendar year in which the taxable year of the 
     taxpayer begins.
       ``(2) Coordination with dependent care credit.--This 
     subsection shall apply to a taxpayer for a taxable year only 
     if the taxpayer elects not to have section 21 apply for such 
     year.''
       (b) Conforming Amendment.--Subparagraph (I) of section 
     6213(g)(2) of such Code is amended by striking ``section 
     24(e)'' and inserting ``section 24(f)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1998.

     SEC. 3. CHILD TAX CREDIT ALLOWED IN DETERMINING ALTERNATIVE 
                   MINIMUM TAX LIABILITY.

       (a) In General.--Subsection (a) of section 26 of the 
     Internal Revenue Code of 1986 is amended by inserting 
     ``(other than the credit allowed by section 24)'' after 
     ``credits allowed by this subpart''.
       (b) Conforming Amendment.--Section 24 of such Code is 
     amended by inserting after subsection (f) (as added by 
     section 2) the following new subsection:
       ``(g) Limitation Based on Amount of Tax.--The aggregate 
     credit allowed by this section for the taxable year shall not 
     exceed the sum of--
       ``(1) the taxpayer's regular tax liability for the taxable 
     year reduced by the sum of the credits allowed by sections 
     21, 22, 23, 25, and 25A, plus
       ``(2) the tax imposed by section 55 for such taxable 
     year.''
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1998.

     

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