SENIOR ASSEMBLY FEDERAL PROPOSAL NO. 16
INTRODUCED BY SENIOR ASSEMBLY MEMBERS WARREN AND TUCKER
LEGISLATIVE COUNSEL'S DIGEST
AFP 16: FAMILY CAREGIVERS INCOME TAX CREDIT.
UNDER EXISTING FEDERAL LAW, INCOME TAX CREDITS ARE ALLOWED FOR CERTAIN PURPOSES IN COMPUTING THE INCOME THAT IS SUBJECT TO THE TAXES IMPOSED UNDER FEDERAL LAW.
THIS MEASURE WOULD MEMORIALIZE THE CONGRESS AND THE PRESIDENT TO ENACT LEGISLATION THAT WOULD PROVIDE A REIMBURSABLE INCOME TAX CREDIT OF $1,500 TO CAREGIVERS OF FAMILY MEMBERS.
VOTE: MAJORITY.
AFP 16: RELATING TO FAMILY CAREGIVER INCOME TAX CREDIT
WHEREAS, THE NUMBER OF THE ELDERLY PERSONS IN THE UNITED STATES BETWEEN THE AGES OF 65 AND 84 WILL GROW BY ALMOST 31 MILLION PEOPLE BETWEEN THE YEARS 2010 AND 2040; AND
WHEREAS, THE U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES ESTIMATES THAT THERE WILL BE 2.7 MILLION PEOPLE NEEDED TO CARE FOR THE ELDERLY IN 2010, AND THIS NUMBER COULD REACH 6.5 MILLION BY 2050; AND
WHEREAS, FAMILIES ARE FACING THE MOST DAUNTING CARE REQUIREMENTS FOR THEIR ELDERS; AND
WHEREAS, FAMILY CAREGIVERS CONTINUE TO BE THE PRIMARY SOURCE OF LONG-TERM CAREGIVING FOR AMERICAN ELDERS AND, AS SUCH, THEIR UNPAID WORK MAKES A VALUABLE CONTRIBUTION TO SOCIETY AND THE ECONOMY, AND TOUCHES A HUGE SEGMENT OF THE POPULATION; AND
WHEREAS, IN CALIFORNIA ALONE, 6,569,411 RESIDENTS ARE OVER 60 YEARS OF AGE AND 2,046,931 ARE OVER 75 YEARS OF AGE; AND
WHEREAS, CAREGIVING IMPOSES CONSIDERABLE DIRECT COSTS ON CAREGIVERS AND THEIR FAMILIES, INCLUDING MEDICAL SERVICES, MEDICAL DEVICES, AND DRUGS NOT COVERED BY THE INSURANCE, SERVICES, AND RENOVATIONS FOR VEHICLES AND HOME, SUPPLEMENTAL INCOME, FOOD, CLOTHING, AND PERSONAL ITEMS FOR THE ELDERLY; AND
WHEREAS, IT WAS FOUND THAT CAREGIVING IS A FINANCIAL HARDSHIP FOR ABOUT 23 PERCENT OF CAREGIVERS WITH DIRECT OUT-OF-POCKET COSTS THAT COULD RANGE FROM $2,400 TO $3,888 ANNUALLY; AND
WHEREAS, THE VALUE OF TAX CREDITS WILL BE DRASTICALLY LOWER THAN THE ACTUAL COSTS OF NURSING FACILITY PLACEMENT OR EVEN PROFESSIONAL HOME CARE, AT MARKET PRICES, AND A “CONSENSUS ESTIMATE” IS THAT CAREGIVERS PROVIDE 21 HOURS OF CARE PER WEEK, ON AVERAGE (1,080 HOURS PER YEAR), WHICH AT A COST OF $9.92 PER HOUR (THE AVERAGE WAGE) IS EQUIVALENT TO $10,713.00; AND
WHEREAS, CAREGIVERS IN THE WORKFORCE HAVE TO DEAL WITH LOST WAGES, JOB SECURITY, CAREER PATHS, AND EMPLOYMENT BENEFITS SUCH AS HEALTH INSURANCE AND RETIREMENT SAVINGS, ACCORDING TO THE NAC/AARP (2004) SURVEY; AND
WHEREAS, NINETY-TWO PERCENT OF THOSE WITH AN INTENSE LEVEL OF CAREGIVING IMPACT THEIR WORKPLACE BY ARRIVING LATE, LEAVING EARLY OR TAKING TIME OFF (83 PERCENT), TAKING A LEAVE OF ABSENCE (41 PERCENT), DROPPING BACK TO PART TIME (37 PERCENT), GIVING UP WORK ENTIRELY (35 PERCENT), LOSING JOB BENEFITS (15 PERCENT), TURNING DOWN PROMOTIONS (14 PERCENT), AND TAKING EARLY RETIREMENT (12 PERCENT); AND
WHEREAS, SOME IMPORTANT COSTS BORNE BY FAMILY CAREGIVERS ARE NONMONETARY IN NATURE, BUT ARE SIGNIFICANT, AND THE PHYSICAL, EMOTIONAL, AND SOCIAL BURDENS ATTACHED TO PROVIDING CARE EXACT A HEAVY TOLL ON THESE FAMILY CAREGIVERS, INCLUDING LOSS OF LEISURE TIME AND INCREASED STRESS AND IMPAIRED PHYSICAL AND PSYCHOLOGICAL HEALTH, AND THESE COSTS CAN TAKE THE FORM OF LIMITS ON PREPARATION FOR THEIR OWN RETIREMENT AND NEGLECT OF THEIR OWN HEALTH; AND
WHEREAS, EMOTIONAL STRAIN OFTEN LEADS TO DEPRESSION WHICH DEPLETES A CAREGIVER’S RESOURCES AND THEREFORE INCREASES DIRECT CAREGIVING COSTS BY REQUIRING THE CAREGIVER TO TURN TO FORMAL PROFESSIONAL HELP EARLIER AND TO NURSING HOME ADMISSION; AND
WHEREAS, THE PSYCHOLOGICAL BENEFITS OF A CAREGIVER TAX CREDIT MAY HAVE SECONDARY VALUE IN AVOIDING COSTLY NURSING HOME ADMISSIONS; BECAUSE NURSING HOME CARE IS SO EXPENSIVE, CAREGIVERS WHO ARE DRIVEN TO ENROLL THEIR ELDERS IN NURSING HOMES ARE VERY QUICKLY AT RISK OF “SPENDING DOWN” ASSETS AND INITIATING MEDICAID CLAIMS; NOW, THEREFORE, BE IT
RESOLVED, BY THE SENIOR ASSEMBLY AND THE SENIOR SENATE, JOINTLY, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA AT ITS 2011 REGULAR SESSION, A MAJORITY OF THE MEMBERS VOTING THEREFOR, HEREBY PROPOSES THAT CONGRESS ENACT LEGISLATION THAT WILL PROVIDE A REIMBURSABLE INCOME TAX CREDIT OF $1,500 TO CAREGIVERS OF FAMILY MEMBERS; AND BE IT FURTHER
RESOLVED, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA RESPECTFULLY MEMORIALIZES THE CONGRESS AND THE PRESIDENT TO ENACT APPROPRIATE LEGISLATION THAT WOULD ADDRESS THE CONCERNS SET FORTH IN THIS MEASURE; AND BE IT FURTHER
RESOLVED, THAT A COPY OF THIS MEASURE BE TRANSMITTED TO THE PRESIDENT AND VICE PRESIDENT, THE SPEAKER OF THE HOUSE OF REPRESENTATIVES, THE CHAIRPERSONS OF THE HOUSE AND SENATE COMMITTEES ON AGING, AND TO EACH SENATOR AND REPRESENTATIVE FROM CALIFORNIA IN THE CONGRESS OF THE UNITED STATES.
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RN 11 17678