[Congressional Record Volume 147, Number 28 (Tuesday, March 6, 2001)]
[Senate]
[Pages S1904-S1905]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BAYH (for himself and Mrs. Clinton):
  S. 464. A bill to amend the Internal Revenue Code of 1986 to allow a 
tax credit for long-term care givers; to the Committee on Finance.
  Mr. BAYH. Mr. President, we have spent the last week discussing the 
importance of tax cuts for all Americans. While we discuss fiscally 
responsible means to provide financial benefits to all Americans we 
need to remember there are millions of Americans that are taking on 
extra financial burdens by taking care of a loved one at home. These 
caregivers deserve financial assistance.
  America is aging, we are all living longer and generally healthier 
and more productive lives. In the next 30 years, the number of 
Americans over the age of 65 will double. For most Americans this is 
good news. However, for some families aging comes with unique financial 
obstacles. More and more middle income families are forced to choose 
between providing educational expenses for their children, saving for 
their own retirement, and providing medical care for their parents and 
grandparents. When a loved one becomes ill and needs to be cared for, 
nothing is more challenging then deciding how the care they need should 
be provided. Today, I rise again to make that decision easier and to 
strengthen one option for long-term care caring for a loved one at 
home.
  The bill I am reintroducing today, the Care Assistance and Resource 
Enhancement Tax Credit, will provide caregivers with a $3,000 tax 
credit for the services they provide. I am reintroducing this bill in 
order to encourage families to take care of their loved ones, by making 
it more affordable for seniors to stay at home and receive the care 
they need, while saving the government billions of dollars currently 
spent on institutional care. Through

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this tax credit, we accomplish all that while emphasizing family 
values.
  There are over 22 million people providing unpaid help with personal 
needs or household chores to a relative or friend who is at least 50 
years old. In Indiana alone, there are 568,300 caregivers. They do this 
work without any compensation. They do not send the government a bill 
for their services or get reimbursed for their expenses by a private 
company. They do it because they care. As a result of their compassion, 
the government saves billions of dollars. For example, the average cost 
of a nursing home is $46,000 a year. The government spent approximately 
$32 billion in formal home health care costs and $83 billion in nursing 
home costs. If you add up all the private sector and government 
spending on long-term care it is dwarfed by the amount families spend 
caring for loved ones in their homes. As a study published by the 
Alzheimers Association indicated, caregivers provide $196 billion worth 
of care a year.
  I held a field hearing in my state, Indiana, in August of 1999 to 
discuss ways to make long-term care more affordable. At this hearing, I 
heard from three caregivers who are providing care for a family member. 
Mrs. Linda McKinstry takes care of her husband who had been diagnosed 
with Alzheimers two years ago. Mr. and Mrs. Cahee are caregivers for 
Mr. Cahee's mother who also has Alzheimers. They all echoed the need 
for financial relief and support services. They spoke of the financial 
and emotional stress associated with taking care of a loved one. After 
hearing their stories, it became clear that their efforts are truly 
heroic and we should be doing all that we can at the federal level to 
provide what they need to keep their families together.
  At a time when people are becoming skeptical of the government, 
Congress needs to help people meet the challenges they face in their 
daily lives. This tax credit does that. It will serve 1.2 million older 
Americans, over 500,000 non-elderly adults, and approximately 250,000 
children a year. I am encouraged by the inclusion of this tax credit in 
Senator Daschle's targeted tax package. I urge my colleagues to take 
notice of the work done by caregivers and join me in supporting this 
legislation and giving caregivers the gratitude they deserve.
                                 ______