To establish the National Commission on Effective Marginal Tax Rates for Low-Income Families.

Summary: Making Work and Marriage Pay Act of 2010 - Establishes the National Commission on Effective Marginal Tax Rates for Low-Income Families to study, report, and make recommendations on policy changes to mitigate the impact of the effective marginal tax rate and of phaseouts in federal benefits on low-income earners and their families.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Making Work and Marriage Pay Act of 
2010''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The take-home pay of low-income families is subject to 
        reductions from many sources, including the Federal income tax, 
        Social Security payroll taxes, and State income taxes. In 
        addition, eligibility for many Federal and State programs for 
        assistance to the working families, such as the earned income 
        tax credit, the child tax credit, supplemental nutritional 
        assistance program, housing assistance programs, Federal and 
        State health care programs, child care assistance, and 
        temporary assistance to needy families, is based in part on 
        income levels. The rates at which the benefits from such 
        programs are phased out have the same disposable income 
        reducing effect as escalating marginal tax rates.
            (2) The total effective marginal rate of tax for additional 
        income earned by low-income people can exceed 100 percent and 
        can be a disincentive to working more hours, getting a raise, 
        seeking education toward a more lucrative trade, getting 
        married, or engaging in other economic or social activities.
            (3) Congress has enacted each of these programs without 
        consideration of the impact it would have on other existing 
        programs. As a result, the structure of the United States 
        system for the support of low-income families is uncoordinated 
        and contains features which work against the goal of 
        encouraging families to work their way toward self-sufficiency.

SEC. 3. DEFINITIONS.

    For purposes of this Act:
            (1) Low-income.--The term ``low-income'' means, with 
        respect to any individual or family group, an individual or 
        family group, as the case may be, whose income is not more than 
        225 percent of the poverty line (as defined by the Office of 
        Management and Budget).
            (2) Federal benefits.--The term ``Federal benefits'' 
        means--
                    (A) deductions, credits, and other tax benefits 
                available to low income taxpayers under the Internal 
                Revenue Code of 1986, including--
                            (i) the earned income tax credit under 
                        section 32 of such Code,
                            (ii) the child tax credit under section 24 
                        of such Code, and
                            (iii) the dependent care tax credit under 
                        section 21 of such Code, and
                    (B) Federal assistance programs for low-income 
                individuals and families, including--
                            (i) the supplemental nutritional assistance 
                        program established under the Food and 
                        Nutrition Act of 2008 (7 U.S.C. 2011 et seq.),
                            (ii) any assistance, loan, loan guarantee, 
                        housing, housing assistance, or other housing 
                        related program administered, in whole or in 
                        part, by the Secretary of Housing and Urban 
                        Development, the Secretary of Veterans Affairs, 
                        or any other Federal agency housing assistance, 
                        including the project-based and tenant-based 
                        rental assistance programs under section 8 of 
                        the United States Housing Act of 1937,
                            (iii) any Federal programs providing child 
                        care assistance, and
                            (iv) Federal programs providing health care 
                        assistance, including assistance under the 
                        Medicaid program established under title XIX of 
                        the Social Security Act and the State 
                        Children's Health Insurance Program under title 
                        XXI of such Act.
            (3) Effective marginal tax rate.--The term ``effective 
        marginal tax rate'' means the cost, in terms of both taxes and 
        loss of Federal benefits, for each dollar earned by a low-
        income individual.

SEC. 4. NATIONAL COMMISSION ON EFFECTIVE MARGINAL TAX RATES FOR LOW-
              INCOME FAMILIES.

    (a) Establishment.--There is established a commission to be known 
as the ``National Commission on Effective Marginal Tax Rates for Low-
Income Families'' (hereinafter in this Act referred to as the 
``Commission'').
    (b) Duties of Commission.--
            (1) In general.--The Commission shall study and make 
        recommendations on policy changes to mitigate the impact of the 
        effective marginal tax rate and of phaseouts in Federal 
        benefits on low-income earners and their families.
            (2) Report.--Not later than 1 year after the date of the 
        enactment of this Act, the Commission shall submit to the 
        President and to Congress a report containing the following:
                    (A) Analysis.--A detailed analysis of the 
                following:
                            (i) The Commission's general 
                        recommendations for increasing coordination of 
                        the delivery of Federal benefits for low-income 
                        families in order to reduce effective marginal 
                        tax rates and decrease disincentives to work 
                        and marriage.
                            (ii) The relative usefulness of sudden 
                        benefit cutoffs (sometime referred to as 
                        ``cliffs'') versus gradual reductions (sometime 
                        referred to as ``phaseouts'') in Federal 
                        benefits on low-income workers' behavior 
                        relating to work and marriage.
                            (iii) The interaction of Federal benefits 
                        and State assistance programs, and the 
                        potential benefits of structuring State 
                        programs consistent with the design of Federal 
                        assistance.
                            (iv) The maximum extent to which funding 
                        for Federal benefits can be appropriated 
                        annually avoiding the need to create additional 
                        entitlement programs.
                            (v) The extent to which low-income 
                        cohabiting couples (including couples with 
                        children and couples without children) resist 
                        entering a legal marriage in order to maximize 
                        Federal benefits and avoid lost income.
                    (B) Recommendations.--
                            (i) In general.--A description of the 
                        Commission's recommendations relating to the 
                        following:
                                    (I) Combining all Federal benefits 
                                which are not tax benefits into a 
                                single flexible voucher, allowing the 
                                beneficiary to allocate funds within 
                                each of the supported benefit areas.
                                    (II) To the extent possible, 
                                providing all eligible families with 
                                equal voucher funds described in clause 
                                (i), varying only for income, family 
                                size, and the presence of children in 
                                the household.
                                    (III) Combining all Federal 
                                benefits which are tax benefits for 
                                low-income families into a coordinated 
                                credit that minimizes phaseouts, 
                                encourages work, is adjusted for family 
                                size, and does not penalize marriage.
                                    (IV) Establishing a single 
                                eligibility standard for all Federal 
                                benefits.
                            (ii) Revenue neutrality.--In making 
                        recommendations under this subparagraph, the 
                        Commission shall consider the need to maintain 
                        revenue neutrality in order to avoid increasing 
                        the deficit.
                            (iii) Blueprint for legislation.--The 
                        Commission shall provide a blueprint for 
                        legislative proposals for each policy 
                        recommendation under this subparagraph.
                    (C) Other matters.--
                            (i) Non-feasibility.--Should the Commission 
                        conclude that the policy framework described in 
                        subparagraph (B) is not feasible, the 
                        Commission shall include in its report--
                                    (I) a detailed analysis of such 
                                policy framework,
                                    (II) a comprehensive explanation of 
                                the reasons for its conclusion, and
                                    (III) one or more policy 
                                recommendations addressing the problem 
                                of effective marginal tax rates on low-
                                income families.
                            (ii) Additional matter.--If the Commission 
                        includes in its report a policy plan using the 
                        policy elements described in subparagraph (B), 
                        it may also include additional alternative 
                        recommendations (together with a legislative 
                        blueprint as provided under subparagraph 
                        (B)(iii)).
    (c) Membership and Meetings.--
            (1) Members.--The Commission shall be composed of 15 
        members, of whom 4 shall be members described in paragraph (2) 
        and 11 shall be appointed pursuant to paragraph (3).
            (2) Cabinet members serving on commission.--
                    (A) In general.--The members described in this 
                paragraph are the following Secretaries:
                            (i) The Secretary of the Treasury.
                            (ii) The Secretary of Agriculture.
                            (iii) The Secretary of Housing and Urban 
                        Development.
                            (iv) The Secretary of Health and Human 
                        Services.
                    (B) Non-voting members; chairman.--Of the members 
                of the Commission described in subparagraph (A)--
                            (i) the 2 members with the least seniority 
                        in terms of service as Secretary shall be 
                        nonvoting members, and
                            (ii) the member with the most seniority in 
                        terms of service as Secretary shall be the 
                        chairman.
            (3) Appointed members.--
                    (A) Congressional appointments.--The Speaker of the 
                House of Representatives, the minority leader of the 
                House of Representatives, the majority leader of the 
                Senate, and the minority leader of the Senate shall 
                each appoint 2 members, who shall each be experts in 
                the subject matter of the Commission.
                    (B) Governors.--
                            (i) In general.--The President shall 
                        appoint 3 State governors, of whom--
                                    (I) no more than 1 shall represent 
                                the same political party represented by 
                                the President,
                                    (II) 1 shall be a governor of a 
                                State which is ranked in the top third 
                                on the list of benefit providers 
                                established under clause (ii),
                                    (III) 1 shall be a governor of a 
                                State which is ranked in the middle 
                                third on the list of benefit providers 
                                established under clause (ii), and
                                    (IV) at least 1 shall be a governor 
                                of a State which is ranked in the 
                                lowest third on the list of benefit 
                                providers established under clause 
                                (ii).
                            (ii) Ranking of states.--The members of the 
                        Commission described in paragraph (2)(A) shall 
                        establish a list ranking of States from highest 
                        benefit providers to lowest benefit providers 
                        based on the following:
                                    (I) The level of benefits provided 
                                in the State under the Temporary 
                                Assistance to Needy Families under 
                                title IV of the Social Security Act.
                                    (II) The average fair-market value 
                                of rental housing in the State.
                                    (III) The State share of assistance 
                                provided under a State plan under the 
                                Medicaid program under title XIX of the 
                                Social Security Act and a State child 
                                health plan under the State Children's 
                                Health Insurance Program under title 
                                XXI of such Act.
                    (C) Date for original appointment.--The appointing 
                authorities described in paragraph (1) shall appoint 
                the initial members of the Commission not later than 30 
                days after the date of enactment of this Act.
                    (D) Terms of appointment.--The term of any 
                appointment shall be for the life of the Commission.
            (4) Designees.--A member of the Commission serving under 
        paragraph (2) or appointed under paragraph (2)(B) may appoint a 
        designee to serve on the Commission in such member's place.
            (5) Meetings.--The chairman shall call the first meeting of 
        the Commission. Thereafter, the Commission shall meet at the 
        call of its chairman or a majority of its members.
            (6) Quorum.--A quorum shall consist of 9 voting members of 
        the Commission.
            (7) Vacancies.--A vacancy on the Commission shall be filled 
        in the same manner in which the original appointment was made, 
        not later than 30 days after the Commission is given notice of 
        the vacancy, and shall not affect the power of the remaining 
        members to execute the duties of the Commission.
            (8) Compensation.--Members of the Commission shall receive 
        no additional pay, allowances, or benefits by reason of their 
        service on the Commission.
            (9) Expenses.--Each member of the Commission shall receive 
        travel expenses and per diem in lieu of subsistence in 
        accordance with sections 5702 and 5703 of title 5, United 
        States Code.
    (d) Staff and Support Services.--
            (1) Executive director.--
                    (A) Appointment.--The Chairman shall appoint an 
                executive director of the Commission.
                    (B) Compensation.--The executive director shall be 
                paid the rate of basic pay for level V of the Executive 
                Schedule.
            (2) Other staff.--The Chairman may appoint and fix the pay 
        of additional personnel.
            (3) Physical facilities.--The Administrator of General 
        Services shall locate suitable office space for the operation 
        of the Commission. The facilities shall serve as the 
        headquarters of the Commission and shall include all necessary 
        equipment and incidentals required for the proper functioning 
        of the Commission.
    (e) Powers of Commission.--
            (1) Hearings and other activities.--For the purpose of 
        carrying out its duties, the Commission may hold such hearings 
        and undertake such other activities as the Commission 
        determines to be necessary to carry out its duties.
            (2) Studies by gao.--Upon the request of the Commission, 
        the Comptroller General shall conduct such studies or 
        investigations as the Commission determines to be necessary to 
        carry out its duties.
            (3) Detail of federal employees.--Upon the request of the 
        Commission, the head of any Federal agency is authorized to 
        detail, without reimbursement, any of the personnel of such 
        agency to the Commission to assist the Commission in carrying 
        out its duties. Any such detail shall not interrupt or 
        otherwise affect the civil service status or privileges of the 
        Federal employee.
            (4) Technical assistance.--Upon the request of the 
        Commission, the head of a Federal agency shall provide such 
        technical assistance to the Commission as the Commission 
        determines to be necessary to carry out its duties.
            (5) Use of mails.--The Commission may use the United States 
        mails in the same manner and under the same conditions as 
        Federal agencies and shall, for purposes of the frank, be 
        considered a commission of Congress as described in section 
        3215 of title 39, United States Code.
            (6) Obtaining information.--The Commission may secure 
        directly from any Federal agency information necessary to 
        enable it to carry out its duties, if the information may be 
        disclosed under section 552 of title 5, United States Code. 
        Upon request of the Chairman of the Commission, the head of 
        such agency shall furnish such information to the Commission.
            (7) Administrative support services.--Upon the request of 
        the Commission, the Administrator of General Services shall 
        provide to the Commission on a reimbursable basis such 
        administrative support services as the Commission may request.
            (8) Printing.--For purposes of costs relating to printing 
        and binding, including the cost of personnel detailed from the 
        Government Printing Office, the Commission shall be deemed to 
        be a committee of the Congress.
    (f) Termination.--The Commission shall terminate 30 days after the 
date of submission of the report required in subsection (b).
    (g) Limitations on Authorization of Appropriations.--There are 
authorized to be appropriated $2,500,000 to carry out this section. Any 
amount appropriated pursuant to the authority of this subsection shall 
remain available without fiscal year limitation until expended.