Correspondence: Letter from Bob Williams to Maureen West discussing disability-related tax amendments

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Extent (Dublin Core)

5 Pages

File Name (Dublin Core)

s-leg_554_002_013

Title (Dublin Core)

Correspondence: Letter from Bob Williams to Maureen West discussing disability-related tax amendments

Description (Dublin Core)

Message to Maureen West from Bob Williams, of the United Cerebral Palsy Associations, suggesting disability-related amendments to various tax reform initiatives likely to be considered by Congress.

Date (Dublin Core)

1991-02-12

Date Created (Dublin Core)

1991-02-12

Congress (Dublin Core)

102nd (1991-1993)

Topics (Dublin Core)

See all items with this value Tax credits

See all items with this value Tax deductions

See all items with this value People with disabilities

See all items with this value Small business

Policy Area (Curation)

Taxation

Creator (Dublin Core)

Williams, Bob

Record Type (Dublin Core)

correspondence

Names (Dublin Core)

See all items with this value United Cerebral Palsy Associations

Location representation (Dublin Core)

District of Columbia (national district)

Rights (Dublin Core)

http://rightsstatements.org/vocab/CNE/1.0/

Language (Dublin Core)

eng

Collection Finding Aid (Dublin Core)

https://dolearchivecollections.ku.edu/index.php?p=collections/findingaid&id=23&q=

Physical Location (Dublin Core)

Collection 003, Box 554, Folder 2

Institution (Dublin Core)

Robert J. Dole Institute of Politics, University of Kansas, Lawrence, KS

Archival Collection (Dublin Core)

Robert J. Dole Senate Papers-Legislative Relations, 1969-1996

Full Text (Extract Text)

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

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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.

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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:

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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.

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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#:

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Correspondence: Letter from Bob Williams to Maureen West discussing disability-related tax amendments

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