[Extensions of Remarks]
[Page E1497]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

CAREGIVERS ASSISTANCE ACT OF 1999

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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.

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