I 

113TH CONGRESS 

1ST SESSION H. R. 2470 

To establish the National Commission on Effective Marginal Tax Rates for 

Low-Income Families. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 20, 2013 

Mr. PETRI (for himself and Ms. TSONGAS) introduced the following bill; which 

was referred to the Committee on Ways and Means, and in addition to 

the Committees on Agriculture, Veterans’ Affairs, Financial Services, Energy and Commerce, and Education and the Workforce, for a period to 

be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee 

concerned 

A BILL 

To establish the National Commission on Effective Marginal 

Tax Rates for Low-Income Families. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Making Work and 

5 Marriage Pay Act of 2013’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 


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1 (1) The take-home pay of low-income families is 

2 subject to reductions from many sources, including 

3 the Federal income tax, Social Security payroll 

4 taxes, and State income taxes. In addition, eligibility 

5 for many Federal and State programs for assistance 

6 to working families, such as the earned income tax 

7 credit, the child tax credit, supplemental nutritional 

8 assistance program, housing assistance programs, 

9 Federal and State health care programs, child care 

10 assistance, and temporary assistance to needy fami11 lies, is based in part on income levels. The rates at 

12 which the benefits from such programs are phased 

13 out have the same disposable income reducing effect 

14 as escalating marginal tax rates. 

15 (2) The total effective marginal rate of tax for 

16 additional income earned by low-income people can 

17 exceed 100 percent and can be a disincentive to 

18 working more hours, getting a raise, seeking edu19 cation toward a more lucrative trade, getting mar20 ried, or engaging in other economic or social activi21 ties. 

22 (3) Congress has enacted each of these pro23 grams without full consideration of the impact it 

24 would have on other existing programs. As a result, 

25 the structure of the United States system for the 


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1 support of low-income families is uncoordinated and 

2 contains features which work against the goal of en3 couraging families to work their way toward self-suf4 ficiency. 

5 SEC. 3. DEFINITIONS. 

6 For purposes of this Act: 

7 (1) LOW-INCOME.—The term ‘‘low-income’’ 

8 means, with respect to any individual or family 

9 group, an individual or family group, as the case 

10 may be, whose income is not more than 225 percent 

11 of the poverty line (as determined under section 

12 673(2) of the Community Services Block Grant Act 

13 (42 U.S.C. 9902(2))). 

14 (2) FEDERAL BENEFITS.—The term ‘‘Federal 

15 benefits’’ means— 

16 (A) deductions, credits, and other tax ben17 efits available to low-income taxpayers under 

18 the Internal Revenue Code of 1986, including— 

19 (i) the earned income tax credit under 

20 section 32 of such Code, 

21 (ii) the child tax credit under section 

22 24 of such Code, and 

23 (iii) the dependent care tax credit 

24 under section 21 of such Code, and 


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1 (B) Federal assistance programs for low2 income individuals and families, including— 

3 (i) the supplemental nutritional assist4 ance program established under the Food 

5 and Nutrition Act of 2008 (7 U.S.C. 2011 

6 et seq.), 

7 (ii) any assistance, loan, loan guar8 antee, housing, housing assistance, or 

9 other housing related program adminis10 tered, in whole or in part, by the Secretary 

11 of Housing and Urban Development, the 

12 Secretary of Veterans Affairs, or any other 

13 Federal agency housing assistance, includ14 ing the project-based and tenant-based 

15 rental assistance programs under section 8 

16 of the United States Housing Act of 1937, 

17 (iii) any Federal programs providing 

18 child care assistance, and 

19 (iv) Federal programs providing 

20 health care assistance, including assistance 

21 under the Medicaid program established 

22 under title XIX of the Social Security Act, 

23 the State Children’s Health Insurance Pro24 gram under title XXI of such Act, and the 


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1 Patient Protection and Affordable Care 

2 Act. 

3 (3) EFFECTIVE MARGINAL TAX RATE.—The 

4 term ‘‘effective marginal tax rate’’ means the cost, 

5 in terms of both taxes and loss of Federal benefits, 

6 for each dollar earned by a low-income individual. 

7 SEC. 4. NATIONAL COMMISSION ON EFFECTIVE MARGINAL 

8 TAX RATES FOR LOW-INCOME FAMILIES. 

9 (a) ESTABLISHMENT.—There is established a com10 mission to be known as the ‘‘National Commission on Ef11 fective Marginal Tax Rates for Low-Income Families’’ 

12 (hereinafter in this Act referred to as the ‘‘Commission’’). 

13 (b) DUTIES OF COMMISSION.— 

14 (1) IN GENERAL.—The Commission shall study 

15 and make recommendations on policy changes to 

16 mitigate the impact of the effective marginal tax 

17 rate and of phaseouts in Federal benefits on low-in18 come earners and their families. 

19 (2) REPORT.—Not later than 18 months after 

20 the first meeting of the Commission, the Commis21 sion shall submit to the President and to the Chair22 man and Ranking member of each Committee of the 

23 House and the Senate that has legislative jurisdic24 tion over any of the Federal programs or revenue 


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1 policies addressed therein, a report containing the 

2 following: 

3 (A) ANALYSIS.—A detailed analysis of the 

4 following: 

5 (i) The Commission’s general rec6 ommendations for increasing coordination 

7 of the delivery of Federal benefits for low8 income families in order to reduce effective 

9 marginal tax rates and decrease disincen10 tives to work and marriage. 

11 (ii) The relative usefulness of sudden 

12 benefit cutoffs (sometime referred to as 

13 ‘‘cliffs’’) versus gradual reductions (some14 time referred to as ‘‘phaseouts’’) in Fed15 eral benefits on low-income workers’ behav16 ior relating to work and marriage. 

17 (iii) The interaction of Federal bene18 fits and State assistance programs, and 

19 the potential benefits of structuring State 

20 programs consistent with the design of 

21 Federal assistance. 

22 (iv) The maximum extent to which 

23 funding for Federal benefits can be appro24 priated annually avoiding the need to cre25 ate additional entitlement programs. 


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1 (v) The extent to which low-income 

2 cohabiting couples (including couples with 

3 children and couples without children) re4 sist entering a legal marriage in order to 

5 maximize Federal benefits and avoid lost 

6 income. 

7 (B) RECOMMENDATIONS.— 

8 (i) IN GENERAL.—A description of the 

9 Commission’s recommendations relating to 

10 the following: 

11 (I) Combining all Federal bene12 fits which are not tax benefits into a 

13 single flexible voucher, allowing the 

14 beneficiary to allocate funds within 

15 each of the supported benefit areas. 

16 (II) To the extent possible, pro17 viding all eligible families with equal 

18 voucher funds described in subclause 

19 (I), varying only for income, family 

20 size, and the presence of children in 

21 the household. 

22 (III) Combining all Federal bene23 fits which are tax benefits for low-in24 come families into a coordinated cred25 it that minimizes phaseouts, encourVerDate Mar 15 2010 03:28 Jun 25, 2013 Jkt 029200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2470.IH H2470

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1 ages work, is adjusted for family size, 

2 and does not penalize marriage. 

3 (IV) Establishing a single eligi4 bility standard for all Federal bene5 fits. 

6 (ii) REVENUE NEUTRALITY.—In mak7 ing recommendations under this subpara8 graph, the Commission shall consider the 

9 need to maintain revenue neutrality in 

10 order to avoid increasing the deficit. 

11 (iii) BLUEPRINT FOR LEGISLATION.— 

12 The Commission shall provide a blueprint 

13 for legislative proposals for each policy rec14 ommendation under this subparagraph. 

15 (C) OTHER MATTERS.— 

16 (i) NON-FEASIBILITY.—Should the 

17 Commission conclude that the policy 

18 framework described in subparagraph (B) 

19 is not feasible, the Commission shall in20 clude in its report— 

21 (I) a detailed analysis of such 

22 policy framework, 

23 (II) a comprehensive explanation 

24 of the reasons for its conclusion, and 


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1 (III) one or more policy rec2 ommendations addressing the problem 

3 of effective marginal tax rates on low4 income families. 

5 (ii) ADDITIONAL MATTER.—If the 

6 Commission includes in its report a policy 

7 plan using the policy elements described in 

8 subparagraph (B), it may also include ad9 ditional alternative recommendations (to10 gether with a legislative blueprint as pro11 vided under subparagraph (B)(iii)). 

12 (c) MEMBERSHIP AND MEETINGS.— 

13 (1) MEMBERS.—The Commission shall be com14 posed of 15 members, of whom 4 shall be members 

15 described in paragraph (2) and 11 shall be ap16 pointed pursuant to paragraph (3). 

17 (2) CABINET MEMBERS SERVING ON COMMIS18 SION.— 

19 (A) IN GENERAL.—The members described 

20 in this paragraph are the following Secretaries: 

21 (i) The Secretary of the Treasury. 

22 (ii) The Secretary of Agriculture. 

23 (iii) The Secretary of Housing and 

24 Urban Development. 


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1 (iv) The Secretary of Health and 

2 Human Services. 

3 (B) NON-VOTING MEMBERS; CHAIRMAN.— 

4 Of the members of the Commission described in 

5 subparagraph (A)— 

6 (i) the 2 members with the least se7 niority in terms of service as Secretary 

8 shall be nonvoting members, 

9 (ii) the member with the most senior10 ity in terms of service as Secretary shall be 

11 the chairman, and 

12 (iii) in the event that the head of a 

13 cabinet department serving as a member of 

14 this Commission under subparagraph (A) 

15 is replaced, and that Cabinet Secretary 

16 was serving as a voting member of the 

17 Commission or as the Chairman of the 

18 Commission, the incoming Secretary shall 

19 assume such a role on the Commission 

20 without regard to the seniority criteria es21 tablished under this subparagraph. 

22 (3) APPOINTED MEMBERS.— 

23 (A) CONGRESSIONAL APPOINTMENTS.— 

24 The Speaker of the House of Representatives, 

25 the minority leader of the House of RepresentaVerDate Mar 15 2010 03:28 Jun 25, 2013 Jkt 029200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H2470.IH H2470

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1 tives, the majority leader of the Senate, and the 

2 minority leader of the Senate shall each appoint 

3 2 members, who shall each be experts in the 

4 subject matter of the Commission. 

5 (B) GOVERNORS.— 

6 (i) IN GENERAL.—The President shall 

7 appoint 3 State governors, of whom— 

8 (I) no more than 1 shall rep9 resent the same political party rep10 resented by the President, 

11 (II) 1 shall be a governor of a 

12 State which is ranked in the top third 

13 on the list of benefit providers estab14 lished under clause (ii), 

15 (III) 1 shall be a governor of a 

16 State which is ranked in the middle 

17 third on the list of benefit providers 

18 established under clause (ii), and 

19 (IV) at least 1 shall be a gov20 ernor of a State which is ranked in 

21 the lowest third on the list of benefit 

22 providers established under clause (ii). 

23 (ii) RANKING OF STATES.—The mem24 bers of the Commission described in para25 graph (2)(A) shall establish a list ranking 


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1 of States from highest benefit providers to 

2 lowest benefit providers based on the fol3 lowing: 

4 (I) The level of benefits provided 

5 in the State under the Temporary As6 sistance to Needy Families under title 

7 IV of the Social Security Act. 

8 (II) The average fair-market 

9 value of rental housing in the State. 

10 (III) The State share of assist11 ance provided under a State plan 

12 under the Medicaid program under 

13 title XIX of the Social Security Act 

14 and a State child health plan under 

15 the State Children’s Health Insurance 

16 Program under title XXI of such Act. 

17 (C) DATE FOR ORIGINAL APPOINTMENT.— 

18 The appointing authorities described in para19 graph (1) shall appoint the initial members of 

20 the Commission not later than 30 days after 

21 the date of enactment of this Act. 

22 (D) TERMS OF APPOINTMENT.—The term 

23 of any appointment shall be for the life of the 

24 Commission. 


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1 (4) DESIGNEES.—A member of the Commission 

2 serving under paragraph (2), appointed under para3 graph (2)(B), or appointed under paragraph (3) 

4 may appoint a designee to serve on the Commission 

5 in such member’s place. 

6 (5) MEETINGS.—The chairman shall call the 

7 first meeting of the Commission. Thereafter, the 

8 Commission shall meet at the call of its chairman or 

9 a majority of its members. 

10 (6) QUORUM.—A quorum shall consist of 9 vot11 ing members of the Commission. 

12 (7) VACANCIES.—A vacancy on the Commission 

13 shall be filled in the same manner in which the origi14 nal appointment was made, not later than 30 days 

15 after the Commission is given notice of the vacancy, 

16 and shall not affect the power of the remaining 

17 members to execute the duties of the Commission. 

18 (8) COMPENSATION.—Members of the Commis19 sion shall receive no additional pay, allowances, or 

20 benefits by reason of their service on the Commis21 sion. 

22 (9) EXPENSES.—Each member of the Commis23 sion shall receive travel expenses and per diem in 

24 lieu of subsistence in accordance with sections 5702 

25 and 5703 of title 5, United States Code. 


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1 (d) COMMISSION STAFF.— 

2 (1) APPOINTMENT AND COMPENSATION.—The 

3 chairman, in accordance with rules agreed upon by 

4 the Commission, may appoint and fix the compensa5 tion of a staff director and such other personnel as 

6 may be necessary to enable the Commission to carry 

7 out its functions, without regard to the provisions of 

8 title 5, United States Code, governing appointments 

9 in the competitive service, and without regard to the 

10 provisions of chapter 51 and subchapter III of chap11 ter 53 of such title relating to classification and 

12 General Schedule pay rates, except that no rate of 

13 pay fixed under this subsection may exceed the 

14 equivalent of that payable for a position at level V 

15 of the Executive Schedule under section 5316 of title 

16 5, United States Code. 

17 (2) PERSONNEL AS FEDERAL EMPLOYEES.— 

18 (A) IN GENERAL.—The executive director 

19 and any personnel of the Commission who are 

20 employees shall be employees under section 

21 2105 of title 5, United States Code, for pur22 poses of chapters 63, 81, 83, 84, 85, 87, 89, 

23 and 90 of that title. 


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1 (B) MEMBERS OF COMMISSION.—Subpara2 graph (A) shall not be construed to apply to 

3 members of the Commission. 

4 (C) DETAILEES.—Any Federal Govern5 ment employee detailed to the Commission shall 

6 retain the rights, status, and privileges of his or 

7 her regular employment without interruption. 

8 (D) EXPERT AND CONSULTANT SERV9 ICES.—The Commission is authorized to pro10 cure the services of experts and consultants in 

11 accordance with section 3109 of title 5, United 

12 States Code, but at rates not to exceed the 

13 daily rate paid a person occupying a position at 

14 level IV of the Executive Schedule under section 

15 5315 of title 5, United States Code. 

16 (E) VOLUNTEER SERVICES.—Notwith17 standing section 1342 of title 31, United States 

18 Code, the Commission may accept and use vol19 untary and uncompensated services as the Com20 mission determines necessary. 

21 (e) POWERS OF COMMISSION.— 

22 (1) HEARINGS AND OTHER ACTIVITIES.—For 

23 the purpose of carrying out its duties, the Commis24 sion may hold such hearings and undertake such 


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1 other activities as the Commission determines to be 

2 necessary to carry out its duties. 

3 (2) DETAIL OF FEDERAL EMPLOYEES.—Upon 

4 the request of the Commission, the head of any Fed5 eral agency is authorized to detail, on a reimburs6 able basis, any of the personnel of such agency to 

7 the Commission to assist the Commission in car8 rying out its duties. Any such detail shall not inter9 rupt or otherwise affect the civil service status or 

10 privileges of the Federal employee. 

11 (3) CONTRACTING.—The Commission may, to 

12 such extent and in such amounts as are provided in 

13 appropriation Acts, enter into contracts to enable 

14 the Commission to discharge its duties under this 

15 title. 

16 (4) TECHNICAL ASSISTANCE.—Upon the re17 quest of the Commission, the head of a Federal 

18 agency shall provide such technical assistance to the 

19 Commission as the Commission determines to be 

20 necessary to carry out its duties. 

21 (5) USE OF MAILS.—The Commission may use 

22 the United States mails in the same manner and 

23 under the same conditions as Federal agencies and 

24 shall, for purposes of the frank, be considered a 


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1 commission of Congress as described in section 3215 

2 of title 39, United States Code. 

3 (6) INFORMATION FROM FEDERAL AGENCIES.— 

4 (A) IN GENERAL.—The Commission is au5 thorized to secure directly from any executive 

6 department, bureau, agency, board, commission, 

7 office, independent establishment, or instrumen8 tality of the government, information, sugges9 tions, estimates, and statistics for the purposes 

10 of this title. Each department, bureau, agency, 

11 board, commission, office, independent estab12 lishment, or instrumentality shall, to the extent 

13 authorized by law, furnish such information, 

14 suggestions, estimates, and statistics directly to 

15 the Commission, upon request made by the 

16 chairman, the chairman of any subcommittee 

17 created by a majority of the Commission, or 

18 any member designated by a majority of the 

19 Commission. 

20 (B) RECEIPT, HANDLING, STORAGE, AND

21 DISSEMINATION.—Information shall only be re22 ceived, handled, stored, and disseminated by 

23 members of the Commission and its staff con24 sistent with all applicable statutes, regulations, 

25 and Executive orders. 


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1 (7) ADMINISTRATIVE SUPPORT SERVICES.— 

2 Upon the request of the Commission, the Adminis3 trator of General Services shall provide to the Com4 mission on a reimbursable basis such administrative 

5 support services as the Commission may request. 

6 (8) PRINTING.—For purposes of costs relating 

7 to printing and binding, including the cost of per8 sonnel detailed from the Government Printing Of9 fice, the Commission shall be deemed to be a com10 mittee of the Congress. 

11 (f) TERMINATION.—The Commission shall terminate 

12 30 days after the date of submission of the report required 

13 in subsection (b). 

14 (g) LIMITATIONS ON AUTHORIZATION OF APPRO15 PRIATIONS.—There are authorized to be appropriated 

16 $1,500,000 to carry out this section. Any amount appro17 priated pursuant to the authority of this subsection shall 

18 remain available without fiscal year limitation until ex19 pended. 

Æ 


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