[Congressional Record Volume 147, Number 13 (Wednesday, January 31, 2001)]
[Extensions of Remarks]
[Page E80]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        THE TAX RELIEF FOR FAMILIES WITH CHILDREN ACT, H.R. 253

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                        HON. BENJAMIN A. GILMAN

                              of new york

                    in the house of representatives

                      Wednesday, January 31, 2001

  Mr. GILMAN. Mr. Speaker, I rise today to introduce the Tax Relief for 
Families With Children Act, H.R. 253. I urge my colleagues to join me 
in supporting this worthwhile legislation.
  We are long overdue for a major cut in taxes. With our strong economy 
and growing surplus, there is no excuse why some tax relief cannot be 
passed this year.
  Since the last major tax bill was passed, the Federal budget has been 
balanced, the estimates for the surplus over the next 10 years have 
continued to grow and Federal Reserve Chairman Alan Greenspan has 
stated that some tax relief is necessary in order to keep the economy 
growing. Giving this environment, I believe that the passage of 
additional tax relief is appropriate.
  This bill will help all American families by increasing tax credits 
for children and child care expenses. Parents will be able to choose 
one of three options for each dependent, either the dependent care tax 
credit, the child tax credit, or the dependent care assistance plan.
  Currently, parents who use child care services can use the dependent 
care tax credit which is capped at $2,400 for one child and $4,800 for 
two or more children. My bill will increase this credit to $3,600 and 
$6,000 respectively. Additionally, this credit will be expanded to 
include more families. The current gross income cap of $50,000 will be 
increased to $110,000 so that more middle income families who need to 
use child care can afford to use safe and accredited centers in this 
country.
  Another option for working families who need child care is the 
dependent care assistance plan (DCAP). DCAP is a savings plan that 
allows a parent to set aside a portion of their salary each month, 
prior to being taxed, that they can then use for child care expenses. 
My bill would increase the contribution to $7,000 and would allow an 
employee's spouse, parent or grandparent who provides child care 
services to be defined as a qualifying individual. This would allow a 
close family member to be paid for providing child care services for a 
child or grandchild.
  The last of the three options is the child tax credit that the 105th 
Congress enacted in 1997. This tax credit can be used for any child up 
until the age of 17 and will be increased from $500 to $900 per child.
  These three tax credits for families will help the average American 
family deal with the debate about child care. Some families need to use 
outside providers, while others choose to have one parent stay at home. 
Whatever their personal decision is, the provisions in this bill will 
benefit them all.
  In addition to helping families with children, this legislation will 
help businesses which provide child care services for their employees. 
By providing a 3-year tax credit for employer provided child care, 
businesses will be encouraged to become involved in child care. 
Employees would welcome the implementation of onsite child care so that 
the guilt that is often associated with day care can be lessened 
because parents are not that far removed from their children. With less 
apprehension, employees will be more productive which is good news for 
any business.
  The second provision for businesses is the expansion of opportunities 
for charitable contributions. Businesses will be permitted to claim a 
charitable contribution for the donation of tangible personal property 
to public or private child care centers, public schools or child care 
support organizations. Businesses will also be allowed to claim a 
charitable contribution for 50% of the fair market value of donated 
transportation services, staff volunteer time and company facilities 
and equipment.
  Accordingly, Mr. Speaker, I urge my colleagues to join me in 
supporting this worthwhile legislation which will provide much needed 
tax relief for working families.

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