January 03, 1995
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.
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
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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