I 

108TH CONGRESS 

1ST SESSION H. R. 618

To establish a commission to study and make recommendations on marginal 

tax rates for the working poor. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 5, 2003

Mr. PETRI introduced the following bill; which was referred to the Committee 

on Ways and Means 

A BILL

To establish a commission to study and make 

recommendations on marginal tax rates for the working poor.

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 ‘‘Poverty Trap Study 

5 Act of 2003’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 

8 (1) Low income people are subject to many 

9 taxes, including the Federal income tax, payroll 

10 taxes, and State income taxes. In addition, eligibility 
2

•HR 618 IH 

1 for many Federal and State programs for assistance 

2 to the working poor, such as the earned income tax 

3 credit, food stamps, housing assistance programs, 

4 medicaid, child care assistance, and the women, in5 fants, and children (WIC) nutrition program is 

6 based in part on income levels. The rates at which 

7 the benefits from such programs are phased out 

8 have the same effect as additional taxes imposed on 

9 the beneficiaries. 

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

11 additional income earned by low income people can 

12 exceed 100 percent and can be a disincentive to 

13 working more hours, getting a raise, learning a more 

14 lucrative trade, getting married, or engaging in 

15 other economic or social activities. 

16 SEC. 3. NATIONAL COMMISSION ON MARGINAL TAX RATES 

17 FOR THE WORKING POOR. 

18 (a) ESTABLISHMENT.—There is established a com19 mission to be known as the National Commission on Mar20 ginal Tax Rates for the Working Poor (in this section re21 ferred to as the ‘‘Commission’’). 

22 (b) DUTIES OF THE COMMISSION.—The Commission 

23 shall—

24 (1) determine the total effective marginal rate 

25 of tax from all taxes and benefit program phaseouts 
3

•HR 618 IH 

1 that persons are subject to (both as individuals and 

2 as married couples) at all earnings levels between 

3 $7,000 and $30,000 per year for at least 5 States, 

4 including Wisconsin and California; and 

5 (2) submit the report required under subsection 

6 (f) to Congress. 

7 (c) MEMBERSHIP.—

8 (1) NUMBER AND APPOINTMENT.—The Com9 mission shall be composed of 12 members, of 

10 whom—

11 (A) 3 shall be appointed by the Speaker of 

12 the House of Representatives; 

13 (B) 2 shall be appointed by the Minority 

14 Leader of the House of Representatives; 

15 (C) 3 shall be appointed by the Majority 

16 Leader of the Senate; 

17 (D) 2 shall be appointed by the Minority 

18 Leader of the Senate; and 

19 (E) 2 shall be appointed by the President. 

20 (2) CHAIRMAN.—The members of the Commis21 sion shall elect a chairman of the Commission at its 

22 first meeting. 

23 (3) BACKGROUND.—At least half of the mem24 bers appointed by each person who appoints mem25 bers under paragraph (1) shall be recognized experts 
4

•HR 618 IH 

1 from think tanks or academia in the subject matter 

2 reviewed by the Commission. 

3 (4) TERMS OF APPOINTMENT.—The term of 

4 any appointment under paragraph (1) to the Com5 mission shall be for the life of the Commission. 

6 (5) MEETINGS.—The President shall designate 

7 a member of the Commission to call the first meet8 ing of the Commission. Thereafter, the Commission 

9 shall meet at the call of its Chairman or a majority 

10 of its members. 

11 (6) QUORUM.—A quorum shall consist of 7 

12 members of the Commission. 

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

14 shall be filled in the same manner in which the origi15 nal appointment was made, not later than 30 days 

16 after the Commission is given notice of the vacancy, 

17 and shall not affect the power of the remaining 

18 members to execute the duties of the Commission.

19 (8) COMPENSATION.—Members of the Commis20 sion shall receive no additional pay, allowances, or 

21 benefits by reason of their service on the Commis22 sion. 

23 (9) EXPENSES.—Each member of the Commis24 sion shall receive travel expenses and per diem in 
5

•HR 618 IH 

1 lieu of subsistence in accordance with sections 5702 

2 and 5703 of title 5, United States Code. 

3 (d) STAFF AND SUPPORT SERVICES.—

4 (1) EXECUTIVE DIRECTOR.—

5 (A) APPOINTMENT.—The Chairman shall 

6 appoint an executive director of the Commis7 sion. 

8 (B) COMPENSATION.—The executive direc9 tor shall be paid the rate of basic pay for level 

10 V of the Executive Schedule. 

11 (2) STAFF.—With the approval of the Commis12 sion, the executive director may appoint such per13 sonnel as the executive director considers appro14 priate. 

15 (3) APPLICABILITY OF CIVIL SERVICE LAWS.—

16 The staff of the Commission shall be appointed with17 out regard to the provisions of title 5, United States 

18 Code, governing appointments in the competitive 

19 service, and shall be paid without regard to the pro20 visions of chapter 51 and subchapter III of chapter 

21 53 of such title (relating to classification and Gen22 eral Schedule pay rates). 

23 (4) EXPERTS AND CONSULTANTS.—With the 

24 approval of the Commission, the executive director 
6

•HR 618 IH 

1 may procure temporary and intermittent services 

2 under section 3109(b) of title 5, United States Code. 

3 (5) PHYSICAL FACILITIES.—The Administrator 

4 of General Services shall locate suitable office space 

5 for the operation of the Commission. The facilities 

6 shall serve as the headquarters of the Commission 

7 and shall include all necessary equipment and 

8 incidentals required for the proper functioning of the 

9 Commission. 

10 (e) POWERS OF COMMISSION.—

11 (1) HEARINGS AND OTHER ACTIVITIES.—For 

12 the purpose of carrying out its duties, the Commis13 sion may hold such hearings and undertake such 

14 other activities as the Commission determines to be 

15 necessary to carry out its duties. 

16 (2) STUDIES BY GAO.—Upon the request of the 

17 Commission, the Comptroller General shall conduct 

18 such studies or investigations as the Commission de19 termines to be necessary to carry out its duties. 

20 (3) DETAIL OF FEDERAL EMPLOYEES.—Upon 

21 the request of the Commission, the head of any Fed22 eral agency is authorized to detail, without reim23 bursement, any of the personnel of such agency to 

24 the Commission to assist the Commission in car25 rying out its duties. Any such detail shall not inter-
7

•HR 618 IH 

1 rupt or otherwise affect the civil service status or 

2 privileges of the Federal employee. 

3 (4) TECHNICAL ASSISTANCE.—Upon the re4 quest of the Commission, the head of a Federal 

5 agency shall provide such technical assistance to the 

6 Commission as the Commission determines to be 

7 necessary to carry out its duties. 

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

9 the United States mails in the same manner and 

10 under the same conditions as Federal agencies and 

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

12 commission of Congress as described in section 3215 

13 of title 39, United States Code. 

14 (6) OBTAINING INFORMATION.—The Commis15 sion may secure directly from any Federal agency 

16 information necessary to enable it to carry out its 

17 duties, if the information may be disclosed under 

18 section 552 of title 5, United States Code. Upon re19 quest of the Chairman of the Commission, the head 

20 of such agency shall furnish such information to the 

21 Commission. 

22 (7) ADMINISTRATIVE SUPPORT SERVICES.—

23 Upon the request of the Commission, the Adminis24 trator of General Services shall provide to the Com-
8

•HR 618 IH 

1 mission on a reimbursable basis such administrative 

2 support services as the Commission may request. 

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

4 to printing and binding, including the cost of per5 sonnel detailed from the Government Printing Of6 fice, the Commission shall be deemed to be a com7 mittee of the Congress. 

8 (f) REPORT.—Not later than 1 year after the date 

9 of the enactment of this Act, the Commission shall submit 

10 to Congress a report containing—

11 (1) the Commission’s findings; and 

12 (2) recommendations for resolving any economic 

13 and other disincentives found by the Commission 

14 caused by the marginal tax rates to which the work15 ing poor are subject. 

16 (g) TERMINATION.—The Commission shall terminate 

17 30 days after the date of submission of the report required 

18 in subsection (f). Section 14(a)(2)(B) of the Federal Advi19 sory Committee Act shall not apply to the Commission. 

20 (h) LIMITATIONS ON AUTHORIZATION OF APPRO21 PRIATIONS.—There are authorized to be appropriated not 

22 more than $900,000 to carry out this section.

Æ