Archer Announces Details on
Strengthening the American Family Hearings

January 17, 18, 19

Congressman Bill Archer (R-TX). Chairman-Designate of the Committee on Ways and Means, today announced that the Committee will conduct hearings on January 17, 18, and 19, 1995, on the tax provisions in the Contract with America that are designed to strengthen the American family. On Tuesday. January 17. and Wednesday, January 18, the Committee will receive testimony on the proposed tax credit for families with children. marriage tax penalty relief, refundable tax credit for adoption expenses. and refundable tax credit for home care of the elderly. On Thursday, January 19. the Committee will receive testimony on two tax provisions in the Senior Citizens' Equity Act: the proposed repeal of the 1993 tax increase on social security benefits and a proposal to allow tax-free accelerated death benefits under life insurance contracts. The hearings will feature invited witnesses from the general public. Members of Congress. and other interested parties. All hearings will he held in the main Committee hearing room, 1100 Longworth House Office Building, beginning at 10:00 a.m.

BACKGROUND

The American Dream Restoration Act contains a $500 per child tax credit and a credit to offset partially the "marriage penalty" The $500 tax credit would he available for each child under age 18 The full credit would be available lo families with adjusted gross incomes of $200,000 or less with the credit phased out for incomes exceeding $200,000 The credit would be effective for tax years beginning in 1996. Also beginning in 1996. two-earner couples who file joint returns would he eligible! to claim an income tax credit. The credit would mitigate unfavorable tax consequences which arise when two single workers marry. This latter provision would provide $2 billion of tax relief over each of the first five years.

The Family Reinforcement Act includes a refundable tax credit for adoption expenses and a refundable tax credit for home care of the elderly Families may claim an income tax credit (up to $5.000) for qualified expenses paid for legal child adoptions. The full credit would be available to families with annual adjusted gross incomes of $60.000 or less. with the credit phased out for incomes exceeding $60,000 Families caring for an elderly member in their home would be eligible for a credit equal lo $500 per parent or grandparent who is mentally impaired or disabled and who, without assistance is unable to perform daily living activities, such as eating, bathing, and dressing. Both credits would be effective for tax years beginning after 1995.

The Senior Citizens' Equity Act includes a repeal of the 1993 tax increase on social security benefits and a provision allowing for accelerated death benefits under life insurance contracts. The 1998 lax increase requires senior citizens who earn more than $34.000 (singles) or $44.000 (couples) to pay income taxes on up to 85% of of their social security benefits. The proposed repeal would lower (over a five year period) to 50% the amount of benefits potentially subject to tax, restoring the level of taxation that existed prior to the 1992 tax increase. Beginning in taxable year 1996, terminally and chronically ill individuals would be able to use tax-free distributions from their life insurance policies to pay medical bills and living expenses.

Chairman-Designate Archer stated, "I look forward to hearing what American families have to say about these provisions in the (Contract with America There is no question that tax relief is needed. The Contract with America shows our commitment to provide lower taxes for hard-pressed and hard-working American families."

WAYS AND MEANS COMMITTEE

DETAILS FOR SUBMISSIONS OF REQUESTS TO BE HEARD:

Requests to be heard at the hearings must be made by telephone to Diane Kirkland or Traci Altman (202) 225-1721 no later than the close of business, Monday, January 9, 1995. The telephone request should be followed by a formal written request to Phillip D. Moseley, Chief of Staff, Committee on Ways and Means. U.S. House of Representatives, 1102 Longworth House Office Building. Washington. D.C. 90515. The staff of the Committee will notify by telephone those scheduled to appear as soon as possible after the filing deadline. Any questions concerning a scheduled appearance should be directed to the staff at (202) 225-1721.

In view of the limited time available to hear witnesses, the Committee may not be able to accommodate all requests to be heard. Those persons and organizations not scheduled for an oral appearance are encouraged to submit written statements for the record of the hearing. All persons requesting to be heard, whether they are scheduled for oral testimony or not, will be notified as soon as possible after the filing deadline.

Witnesses scheduled to present oral testimony are required to summarize briefly their written statements in no more than five minutes. THE FIVE MINUTE RULE WILL BE STRICTLY ENFORCED The full written statement of each witness will be included in the printed record.

In order to assure the most productive use of the limited amount of time available to question witnesses all scheduled to appear before the Committee are required to submit 300 copies of their prepared statements for review by Members prior lo the hearing. Testimony should arrive at the Committee office, room 1102 Longworth House Office Building, no later 48 hours before hearings.

WRITTEN STATEMENTS IN LIEU OF PERSONAL APPEARANCE:

Any person or organization wishing to submit a written statement for the printed record of the hearing should submit at least six (6) copies of their statement by the close of business. Friday. February 3, 1995. to Phillip D Moseley, Chief of Staff. Committee on Ways and Means, U.S. House of Representatives 1102 Longworth House Office Building. Washington, D.C. 20515 If those filing written statements wish to have their statements distributed to the press and interested public at the hearing, they may deliver 300 additional copies for this purpose to the Committee office, room 1102 Longworth House Office Building, before the hearing begins.

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