[Congressional Record Volume 147, Number 22 (Thursday, February 15, 2001)]
[Senate]
[Pages S1525-S1526]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. SNOWE:
  S. 383. A bill to amend the Internal Revenue Code of 1986 to allow a 
deduction from gross income for home care and adult day and respite 
care expenses of individual taxpayers with respect to a dependent of 
the taxpayer who suffers from Alzheimer's disease or related organic 
brain disorders; to the Committee on Finance.
  S. 384. A bill to amend the Internal Revenue Code of 1986 to make the 
dependent care credit refundable; to the Committee on Finance.
  Ms. SNOWE. Mr. President, long-term care is an issue that continues 
to tug at Congress and this country. In 1997 close to $117 billion was 
spent on long-term care--almost 12 percent of total U.S. health care 
expenditures. And it is estimated that those in need of long-term care 
will double by 2025, up from the 9 million using these vital services 
today.
  The appropriate care for an individual should be an issue that is 
made by that individual and their loved ones. For many people, 
remaining at home is their choice. It allows them to remain with their 
loved ones in familiar surroundings. But we all know the truth is that 
in many cases it comes down to the financial realities of the family. 
We need to do more to assist these people and their families so that 
they really do have a choice.
  Toward that end I am introducing a bill that provides a tax credit 
for families caring for a relative who suffers from Alzheimer's 
disease. When I first came to Congress over 20 years ago, not a single 
piece of legislation devoted to Alzheimer's disease had even been 
introduced. We have come a long way since then, as today 
``Alzheimer's'' is a household word. It is also the most expensive 
uninsured illness in America.
  Alzheimer's treatment is estimated to cost $100 billion each year. 
And according to the Alzheimer's Association it costs businesses in 
this country more than $33 billion a year due to caregiver absenteeism. 
Sadly, the number of those affected by this disease is rising and will 
continue to rise dramatically, from 4 million today to over 14 million 
by the middle of the century. As staggering as these numbers are, they 
pale in comparison to the emotional costs this disease places on the 
family.
  The first bill I am introducing today 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. This bill is important 
because we need to, as a country, help lessen the financial and 
emotional cost of Alzheimer's by providing some relief to Alzheimer's 
patients and their families.
  The second bill I am introducing today will strengthen the dependent 
care tax credit and restore Congress' original intent to provide the 
greatest benefit of the tax credit to low-income taxpayers. This bill 
expands the dependent care tax credit, makes it applicable respite care 
expenses, and makes it refundable.
  In 1976, the dependent care tax credit was created to help low- and 
moderate-income families alleviate the burden of employment-related 
dependent care. We have changed the DCTC since it was created 25 years 
ago and in fact, in the 1985 Tax Reform Act we indexed all the basic 
provision of the tax code that determine tax liability except for DCTC. 
We need to make the credit relevant by updating it to reflect today's 
world.
  As more and more women enter the workforce combined with the aging of 
our population, we are continuing to see an increased need for both 
child and elder care. Expenses incurred for this care can place a large 
burden on a family's finances. The cost of full time child care can 
range from $4,000 to $10,000. The cost of nursing home care is more 
than of $40,000 a year. Managing these costs is difficult for many 
families, but it is exceptionally burdensome for those in lower income 
brackets.
  My legislation will do that by indexing the credit to inflation and 
making it refundable so that those who do not reach the tax thresholds 
will still receive assistance. It also raises the DCTC sliding scale 
from 30 to 50 percent of work-related dependent care expenditures for 
families earing $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 person earning $45,000 or more.

[[Page S1526]]

  In order to assist those who care for loved ones at home, the bill 
also 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.
  I hope my colleagues will join me in supporting these two bills that 
will provide assistance to families that wish to provide long term care 
to their loved ones at home.
                                 ______