[Congressional Record (Bound Edition), Volume 146 (2000), Part 1]
[Extensions of Remarks]
[Pages 179-180]
[From the U.S. Government Publishing Office, www.gpo.gov]



         WHY TAX DEDUCTIONS DON'T HELP THOSE WHO MOST NEED HELP

                                 ______
                                 

                        HON. FORTNEY PETE STARK

                             of california

                    in the house of representatives

                       Thursday, January 27, 2000

  Mr. STARK. Mr. Speaker, as part of the Patients' Bill of Rights, the 
Republicans insisted on passing an unpaid-for set of tax deductions 
which they say will help improve access to

[[Page 180]]

health insurance. Their proposals will--but mostly for those in the 
upper income brackets who already have health insurance or who can 
afford it. Even in the area of long-term care insurance, the data shows 
that the Republican proposals disproportionately help those in the 
upper income brackets.
  Mr. Speaker, let's be fair. As we work on the access provision of the 
Patients' Bill of Rights, we should convert all of the tax deductions 
to credits, so that those who seek to use these tax incentives are all 
on a level playing field, and so that the Treasury's scarce resources 
go to those most in need of help.
  The following is data from a March, 1999 report to HHS prepared by 
LifePlans, Inc., entitled, ``A Descriptive Analysis of Patterns of 
Informal and Formal Caregiving among Privately Insured and Non-
Privately Insured Disabled Elders Living in the Community.'' The data 
shows how LTC insurance is disproportionately held by those in the 
upper incomes and with the most assets--and how deductions will help 
those people far more than they will help the lower income. A credit 
would be a far fairer tool to help encourage the purchase of LTC 
insurance.

------------------------------------------------------------------------
                                                 All
                                              privately-
                                               insured    All elders age
     Socio-demographic characteristics        home care     65 and over
                                              claimants    (in percent)
                                                 (in          \1\ \2\
                                               percent)
------------------------------------------------------------------------
Race:
    White (not Hispanic)...................           97             85
    Non-White..............................            3             15
Living arrangement:                              (n=694)
    Alone..................................           34             34
    With spouse............................           44             53
    With relative..........................           11             13
    Other..................................           11  ..............
Total income:                                    (n=492)
    $30,000................................           52             65
    >$30,000...............................           48             35
Total income:                                    (n=432)
    Less than $10,500......................            7         \3\ 19
    $10,501--$19,999.......................           22             28
    $20,000--$30,000.......................           28             19
    $30,001--$39,999.......................           13             11
    $40,000--$49,999.......................            9              8
    $50,000--$74,999.......................           11              8
    $75,000................................           10              8
Estimated current value of home:                 (n=431)
    Less than $50,000......................            7         \4\ 25
    $50,000--$99,999.......................           28             37
    $100,000--$149,999.....................           19             18
    $150,000--$199,999.....................           13             10
    $200,000--$249,999.....................           11              4
    $250,000...............................           22             7
------------------------------------------------------------------------
\1\ AOA (1998). Prolife of Older Americans. Washington, D.C.
\2\ LifePlans, Inc. analysis of 1995 survey of 1,000 randomly selected
  individuals age 65 and over.
\3\ Money Income in the United States: 1997 Current Population Reports,
  Consumer Income. Note that data from census table is interpolated to
  assure comparability of intervals. Also note that among claimants, 15%
  of the respondents who were willing to indicate whether their income
  was greater or less than $30,000 were not willing to answer the more
  detailed income questions. That is why there is a difference between
  the estimate for the proportion reporting incomes less than or equal
  to $30,000 (52%) and the estimate derived when summing answers for
  those answering the detailed income question.
\4\ American Housing Survey for the U.S. in 1995. U.S. Census Bureau.



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