[Congressional Record Volume 145, Number 96 (Thursday, July 1, 1999)]
[Extensions of Remarks]
[Page E1497]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   CAREGIVERS ASSISTANCE ACT OF 1999

                                 ______
                                 

                        HON. FORTNEY PETE STARK

                             of california

                    in the house of representatives

                         Thursday, July 1, 1999

  Mr. STARK. Mr. Speaker, I am proud to join with Mr. Markey in 
introducing this important bill. Each day, millions of families 
struggle as they care for their loved ones who suffer from chronic and 
debilitative diseases. Alzheimer's disease, Parkinson's disease, 
multiple sclerosis, Down's syndrome, and the ravages of old age make 
many people dependent on others for their basic care.
  Many Americans depend on long-term health care due to a chronic 
illness or a permanent disability. For example, as many as four million 
of the nation's elderly currently suffer Alzheimer's disease. Unless 
someone finds a cure for this condition, the numbers are sure to grow. 
Within the next 20 to 30 years, there may well be over 14 million 
persons with this terrible disease that slowly destroys the brain. 
According to recent surveys, over 50 percent of persons with 
Alzheimer's disease continue to live with a relative or spouse who sees 
to their day-to-day care. This personal care may last for many years 
and represents the equivalent of a full-time job.
  We are currently working on a comprehensive bill that will broaden 
the scope of services families and patients can use to meet their long-
term care needs. In the interim we offer this modest first step.
  Specifically, this bill provides a $1,000 tax credit for caregivers 
similar to the one described by the President in his State of the Union 
address. Unlike the President's proposal our tax credit is completely 
refundable and makes no distinction between care for an adult or a 
child.
  If the credit is not refundable, it will be of little or no use to 
many of the families most in need of caregiver help. The following 
table illustrates the consequences as simple tax credit that is not 
refundable. A single individual who makes less than $7,050 will receive 
no benefit. That same person would have to make $13,717 to receive the 
full $1,000 of assistance. Similarly, an elderly couple would need a 
combined annual income of $21,067 to realize the entire tax credit.

------------------------------------------------------------------------
                                          Minimum income
                                            required to       Income
              Filing status                   receive       required to
                                          portion of tax   receive full
                                              credit        tax credit
------------------------------------------------------------------------
Single..................................          $7,050         $13,717
Head of Household With One dependent....          11,850          18,571
Married Joint Filers....................          12,700          19,367
Elderly Single Filer....................           8,100          14,767
Elderly Married Joint Filers............          14,400          21,067
------------------------------------------------------------------------

  The consequence of a simple tax credit is that those people who most 
need assistance will be the least likely to obtain the intended 
support. To be honest, $1,000 is not that much money for long-term 
care, but it does provide a family with modest relief that they can use 
as they see fit. That is why we have structured the bill to ensure that 
those who most need the support will receive the refund.
  Another important distinction between our proposal and the 
President's is the treatment of children with long-term care needs. The 
President's proposal would limit the tax credit to $500 for children 
with long term care needs. We do not agree with this policy. The long-
term care needs of a disabled child are just as expensive and 
emotionally distressing as they are for an adult.
  Our fill also has a broader definition of individuals with long-term 
care needs. The President's proposal includes individuals who require 
assistance to perform activities of daily living (bathing, dressing, 
eating, continence, toileting, and transferring in and out of a bed or 
chair). This is a good start but may not include people with severe 
mental health disabilities or developmental disabilities who cannot 
live independently. Our bill does help the caregivers of these people.
  Finally, our bill limits the amount of the refund for those less in 
need of financial support. The full refund is available up to incomes 
of $110,000 for a joint return, $75,000 for an individual return, and 
$55,000 for a married individual filing a separate return. Above these 
levels, the refund is decreased by $50 by every $1,000 over the 
threshold level, and is phased out above $130,000 for a joint return 
and $95,000 of an individual return.
  The need for long-term care will continue to grow as the average age 
of Americans increases. By 2010, those children born in 1945 will begin 
to retire. According to a recent CBO report, in the year 2010 there 
will be 40.6 million people over the age of 65--a 14 percent increase 
from the year 2000. The trend will continue. By 2040, there will be 
77.9 million people over the age of 65, 118 percent more than in 2000. 
Indeed, the 85 and older age group is the fastest growing segment of 
the population.
  This proposal will have significant effect on revenue, but given the 
size of the problem and in the spirit of compassionate government, it 
is a step that we can find a way to afford.

                          ____________________