FEB-12-92 WED 13:46 UCPA, INC (DC) FAX NO. 8423519 P.02 UNITED CEREBRAL PALSY ASSOCIATIONS COMMUNITY SERVICES DIVISION 1522 "K" Street, NW Suite 1112 Washington, DC 20005 202.842.1266 Voice. TTY Fax 202.842.3519 LEONARD H. GOLDENSON Board Chairman JACK HAUSMAN Vice Chairman ROBERT J. MacDONALD ESQ. Vice Chairman JACK SCHILLINGER President RAYMOND S. CACHARES 1st Executive Vice President BERNADETTE KLEIN 2nd Executive Vice President KENNETH R. AUERBACH Vice President Finance WILLIAM BERENBERG, MD Vice President Medical Affairs JACK M. WEINSTEIN, ESQ Vice President General Counsel JOHN W. KLUGE President, UCP Research & Educational Foundation JOHN D. KEMP Executive Director TO: MAUREEN WEST FAX (202) 224-8952 FROM: BOB WILLIAMS, UCPA DATE: FEBRUARY 12, 1991 RE: DISABILITY RELATED TAX AMENDMENTS PER YOUR REQUEST, HERE ARE SOME SUGGESTED DISABILITY-RELATED AMENDMENTS TO VARIOUS TAX REFORM INITIATIVES LIKELY TO BE CONSIDERED BY CONGRESS. SOME ARE SLIGHTLY REVISED FROM THE ONE WE DISCUSSED IN NOVEMBER, OTHERS ARE THE SAME AND I'VE TAGGED ON THREE AT THE END. UCPA STRONGLY URGES THAT ALL APPROACHES TO CRAFTING A PARTICULAR AMENDMENT (I.E. WHETHER IT SHOULD TAKE THE FORM OF A TAX CREDIT, DEDUCTION, ALLOWANCE OR EXEMPTION) SHOULD BE CONSIDERED AND A FISCAL NOTE SHOULD BE SOUGHT FOR EACH VERSION. 1. DISABILITY-RELATED EXPENSES TAX CREDIT/DEDUCTION, EXEMPTION OR ALLOWANCE -- THIS AMENDMENT COULD BE MODELED ON THE CURRENT DISABILITY-RELATED WORK EXPENSES DEDUCTION BUT WOULD BE CRAFTED TO APPLY MORE GENERALLY TO DISABILITY-RELATED EXPENSES INCURRED OUTSIDE OF WORK (E.G., PAS, TECHNOLOGY, ADAPTIVE CLOTHING, ETC). IT COULD BE CRAFTED EITHER TO ENLARGE THE SCOPE OF THE CURRENT DISABILITY-RELATED WORK EXPENSES DEDUCTION (I.E. TO COVER NON-WORK COSTS AS WELL) OR AS A STAND ALONE PROVISION. MOREOVER, IT WOULD DIFFER FROM THE STANDARD MEDICAL DEDUCTION IN THAT AN INDIVIDUAL COULD CLAIM ALL DISABILITY-RELATED EXPENSES AND NOT JUST THOSE ABOVE 7.5% OF THEIR INCOME. IN WHATEVER FORM IT MIGHT TAKE AND DEPENDING ON ITS FISCAL NOTE, THE MEASURE COULD APPLY TO: A) TAXPAYERS WITH DISABILITIES AND THOSE WITH Dole Archives: s-leg_554_002_013_d.pdf Page 1 of 5 DEPENDENTS WITH DISABILITIES OR B) SOLELY TAXPAYERS WITH DISABILITIES. IF THE PROVISION WERE CRAFTED AS A FLAT TAX EXEMPTION OR ALLOWANCE OF, FOR EXAMPLE $500 PER YEAR, PERSONS WHOSE DISABILITY-RELATED EXPENSES ARE HIGHER THAN THE AVERAGE SHOULD HAVE A WAY OF DOCUMENTING THAT ON A SCIHHEDULE AND RECEIVING MORE RELIEF. NOTE: THIS IS, IN FACT, HOW THE IRS CODE WORKS IN GENERAL. FINALLY, STATUTORY OR REPORT LANGUAGE SHOULD BE INCLUDED DIRECTING IRS TO STUDY, IN CONSULTATION WITH A NATIONAL ADVISORY PANEL COMPOSED OF PEOPLE WITH DISABILITIES AND THEIR FAMILIES, AND REPORT BACK TO CONGRESS ON THE FEASIBILITY OF DEVELOPING A SEPARATE DISABILITY-RELATED EXPENSES. DOING SO WOULD PERMIT THOSE WISHING TO ITEMIZE AND DOCUMFNT SUCH COSTS RATHER THAN TAKE A STANDARD DEDUCTION TO DO SO. NOTE: AGAIN THIS IS HOW IRS IS STRUCTURED IN GENERAL. MOREOVER, IF AMERICAN FARMERS CAN ELECT TO DO THEIR TAXES ON A SEPARATE SCHEDULF, AMERICANS WITH DISABILITIES DESERVE NO LESS A CHOICE. JUSTIFICATION: 1) PEOPLE WITH DISABILITIES OFTEN INCUR EXTRA LIVING EXPENSES THAT ARE DISABILITY-RELATED. SUCH EXPENSES BECOME ESPECIALLY BURDENSOME IN ECONOMIC BAD TIMES. 2) EXISTING MEDICAL AND DISABILITY-RELATED WORK EXPENSES DEDUCTIONS DO NOT PROVIDE ADEQUATE RELIEF IN THIS REGARD. 2. AMEND THE ADA TAX CREDIT (SECTION 151, OBRA-90) TO: A) CLARIFY THAT IT APPLIES TO ANY SMALL BUSINESS PROVIDING REASONABLE ACCOMMODATION TO AN EMPLOYEE WITH A DISABILITY AND NOT JUST ONE WHICH IS A PUBLIC ACCOMMODATION. THIS COULD BE DONE BY RETITLING IT: "SMALL BUSINESS AND PUBLIC ACCOMMODATIONS ACCESS CREDIT". JUSTIFICATION: THE TITLE OF THE SECTION AND THE WAY IT READS ARE BOTH CONFUSING ON THIS POINT AND NEED TO BE CLARIFIED. B) ADD PERSONAL ASSISTANCE AS AN ELIGIBLE EXPENSE UNDER SECTION 151. THIS COULD BE DONE BY ADDING PERSONAL ASSISTANCE AS AN "ELIGIBLE ACCESS EXPENDITURE" IN THE SECTION’S FIFTH AND FINAL CLAUSE. JUSTIFICATION: THE BASIC AIM OF 151 IS CLEARLY BARRIER REMOVAL. ELIGIBLE SMALL BUSINESSES MIGHT TRY TO CLAIM PAS EXPENSES AS "ELIGIBLE ACCESS EXPENDITURES". BUT SINCE THE STATUTE DOES NOT LIST PAS, IRS IS NOT REQUIRED TO ACCEPT SUCH CLAIMS OR EVEN INFORM BUSINESSES OF THEIR RIGHT TO MAKE THEM. Dole Archives: s-leg_554_002_013_d.pdf Page 2 of 5 C) ALLOW FIRMS THAT INCUR REASONABLE ACCOMMODATIONS COSTS THAT ARE ONGOING IN NATURE OR EXCEED UNDUE BURDEN TO ELECT TO TAKE A CREDIT IN AN AMOUNT EQUAL TO 25% OF ELIGIBLE ACCESS EXPENDITURES THAT EXCEED $10,250 BUT DO NOT EXCEED $15,500. JUSTIFICATION: ELIGIBLE SMALL BUSINESSES THAT PROVIDE JOB ACCOMMODATIONS OF AN ONGOING NATURE (E.G., PAS, SUPPORTED EMPLOYMENT) OR THAT EXCEED UNDUE BURDEN SHOULD HAVE ADDED INCENTIVE TO DO SO ESPECIALLY IN RECESSIONARY TIMES. D) ALLOW FIRMS WITH FEWER THAN 15 EMPLOYEES TO ELECT TO TAKE A CREDIT IN AN AMOUNT EQUAL TO 75% OF ELIGIBLE ACCESS EXPENDITURES THAT EXCEED $250 BUT DO NOT EXCEED $10,250 THAT ARE SPENT SPECIFICALLY ON PROVIDING JOB ACCOMMODATIONS TO ONE OR MORE EMPLOYEES WITH DISABILITIES. JUSTIFICATION: FIRMS WITH FEWER THAN 15 EMPLOYEES ARE NOT COVERED BY THE TITLE I EMPLOYMENT REQUIREMENTS OF THE ADA BUT ARE, IN FACT, THE RICHEST JOB SOURCE IN OUR NATION. FEDERAL TAX POLICY CAN AND SHOULD ENCOURAGE THIS VITAL SECTOR OF OUR ECONOMY TO HIRE AND PROVIDE JOB ACCOMMODATIONS TO QUALIFIED EMPLOYEES WITH DISABILITIES. E) ALLOW DAY CARE PROVIDERS AND OTHER SIMILAR SERVICES, WHICH ARE COVERED BY THE PUBLIC ACCOMMODATIONS -- TITLE III REQUIREMENTS OF THE ADA, TO ELECT TO TAKE A CREDIT IN AN AMOUNT EQUAL TO 50% OF ELIGIBLE ACCESS EXPENDITURES THAT EXCEED $10,250 ON PROVIDING ASSISTANCE TO YOUNGSTERS WITH DISABILITIES WHO REQUIRE IT WITH EATING, TOILETING AND/OR DRESSING IN ORDER TO PARTICIPATE IN SUCH PROGRAMS. JUSTIFICATION: AS PRESIDENT BUSH PROCLAIMED, THE TRUE MISSION OF THE ADA IS TO BRING "THE SHAMEFUL WALLS OF EXCLUSION STUMBLING DOWN." THIS PROCESS MUST START EARLY. CHILDREN -- WITH AND WITHOUT DISABILITIES -- LEARN BEST BY GROWING UP TOGETHER. YOUNGSTERS WITH DISABILITIES SHOULD NOT BE BARRED THESE OPPORTUNITIES JUST BECAUSE THEY REQUIRE ASSISTANCE WITH EATING, TOILETING AND/OR DRESSING. ELIGIBLE DAY CARE PROVIDERS AND OTHER SIMILAR SERVICES THAT INCUR ADDED COSTS IN PROVIDING SUCH ASSISTANCE SHOULD BE ENCOURAGED AND PROVIDED WITH ADEQUATE TAX RELIEF TO DO SO. (PLEASE NOTE: THE PERCENTAGES AND DOLLAR AMOUNTS LISTED IN RECOMMENDATIONS 2.C.-2.E. ARE INCLUDED FOR ILLUSTRATIVE PURPOSES AND MAY HAVE TO BE ADJUSTED ACCORDINGLY BASED ON FISCAL NOTE CONSIDERATIONS.) 3. AMEND CURRENT LAW TO PERMIT TAXPAYERS WITH DISABILITIES TO: Dole Archives: s-leg_554_002_013_d.pdf Page 3 of 5 A) TO ELECT TO TAKE A CREDIT IN AN AMOUNT EQUAL TO 100% OF ELIGIBLE PERSONAL ASSISTANCE EXPENDITURES THAT EXCEED 2% OF THEIR NET INCOME. JUSTIFICATION: MUCH THE SAME AS #1 ABOVE. THIS IS AMORE TARGETED VERSION OF #1 ABOVE BUT WOULD PROVIDE TAXPAYERS WITH DISABILITIES WHO RELY UPON PAS TO WORK AND LEAD TYPICAL LIVES SOME ADDED TAX RELIEF. B) TO ELECT TO TAKE A CREDIT IN AN AMOUNT EQUAL TO 100% OF THE COSTS OF A JOB ACCOMMODATION WHICH THE PERSON AGREES TO PAY FOR BECAUSE IT EXCEEDS A FIRM'S UNDUE BURDEN TRIGGER. JUSTIFICATION: A TAXPAYER WITH A DISABILITY WHO PAY FOR A JOB ACCOMMODATION WHICH EXCEEDS A FIRM’S UNDUE BURDEN TRIGGER SHOULD BE PROVIDED WITH ADEQUATE TAX RELIEF. 4. REQUIRE THE IRS TO STREAMLINE AND SIMPLIFY RECORD KEEPING AND FILING REQUIREMENTS FOR PERSONAL ASSISTANCE IN CONSULTATION WITH A NATIONAL ADVISORY PANEL COMPOSED OF PAS USERS, FAMILIES, DISABILITY ADVOCATES AND REPRESENTATIVES OF INDEPENDENT LIVING CENTERS. JUSTIFICATION: IRS RECORD KEEPING AND FILING REQUIREMENTS ARE BURDENSOME FOR PERSONAL ASSISTANCE USERS AND THEIR FAMILIES TO FOLLOW. TO COMPOUND MATTERS, THE IRS HAS CHOSEN TO CRACK DOWN ON USERS AND ILC’S IN SOME STATES. THE PROCESS MUST BE STREAMLINED AND SIMPLIFIED IN CONSULTATION WITH THOSE MOST DIRECTLY AFFECTED BY IT. 5. PERMIT HOMEOWNERS WITHOUT DISABILITIES WHO MAKE THFIR HOMES ACCESSIBLE OUT OF CONSIDERATION OF VISITING FAMILY/FRIENDS TO DEDUCT SOME OR ALL OF THE COSTS OF DOING SO. JUDY HEUMANN CAME UP WITH THIS IDEA AND CAN BE CONTACTED DIRECTLY FOR MORE DETAILS AT 510 763.4100. JUSTIFICATION: 1. IT PROMOTES THE SPIRIT AND AIMS OF THE ADA AND THE FAIR HOUSING ACT AMENDMENTS; AND 2. IT WILL INCREASE THE NATION'S SUPPLY OF ACCESSIBLE HOUSING. 6. PERMIT FOREIGN EXCHANGE STUDENTS TO WORK AS PERSONAL ASSISTANTS OFF CAMPUS AS WELL AS ON CAMPUS. CURRENTLY THEY ARE ONLY PERMITTED TO DO THE LATTER. IT IS UNCLEAR WHETHER THIS WOULD REQUIRE A CHANGE IN THE IRS AND/OR IMMIGRATION CODE. JUDY, HOWEVER, ASKED THAT I BRING IT TO YOUR ATTENTION. JUSTIFICATION: IT INCREASES THE SUPPLY OF AFFORDABLE PAS WORKERS AND GETS RID OF AN ARBITRARY AND HARMFUL DISTINCTION IN OUR TAX CODE. Dole Archives: s-leg_554_002_013_d.pdf Page 4 of 5 7. EXEMPT SSI RECIPIENTS FROM PAYING ANY TAX ON EARNED INCOME. JUSTIFICATION: THIS MAY SEEM UNNECESSARY BUT I KNOW OF AT LEAST ONE PERSON WHO BECAUSE HE GETS SSI AND IS A SELF-EMPLOYED ARTIST (MAKING AT MOST $6,000 A YEAR) PAY INCOME TAX AT A RIDICULOUSLY REGRESSIVE RATE. AS IN THE PAST, I AM SHARING COPIES OF THIS WITH BOBBY SILVERSTEIN, PAT WRIGHT, JUDY HEUMANN AND PAUL MARCHAND. PLEASE LET ME KNOW WHAT YOU THINK AND HOW I CAN BE OF FURTHER HELP. THANKS. cc: BOBBY SILVERSTEIN FAX#: (202) 224-9369 JUDY HEUMANN FAX#: (202) 763-4109 PAUL MARCHAND FAX#: (202) 467-4179 PAT WRIGHT FAX#: Dole Archives: s-leg_554_002_013_d.pdf Page 5 of 5