I 
111TH CONGRESS 
2D SESSION 
H. R. 5574 
To establish the National Commission on Effective Marginal Tax Rates for 
Low-Income Families. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 22, 2010 
Mr. PETRI (for himself, Mr. BURTON of Indiana, Ms. NORTON, and Mr. 
FORBES) introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committees on Agri-
culture, Veterans’ Affairs, Financial Services, Energy and Commerce, and 
Education and Labor, 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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: 
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(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 nutri-
tional assistance program, housing assistance pro-
grams, 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 re-
ducing 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 edu-
cation toward a more lucrative trade, getting mar-
ried, or engaging in other economic or social activi-
ties. 
(3) Congress has enacted each of these pro-
grams without consideration of the impact it would 
have on other existing programs. As a result, the 
structure of the United States system for the sup-
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port of low-income families is uncoordinated and 
contains features which work against the goal of en-
couraging families to work their way toward self-suf-
ficiency. 
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 Man-
agement and Budget). 
(2) FEDERAL BENEFITS.—The term ‘‘Federal 
benefits’’ means— 
(A) deductions, credits, and other tax ben-
efits 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— 
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(i) the supplemental nutritional assist-
ance program established under the Food 
and Nutrition Act of 2008 (7 U.S.C. 2011 
et seq.), 
(ii) any assistance, loan, loan guar-
antee, housing, housing assistance, or 
other housing related program adminis-
tered, 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, includ-
ing 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, 
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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 com-
mission to be known as the ‘‘National Commission on Ef-
fective 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-in-
come 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 re-
port containing the following: 
(A) ANALYSIS.—A detailed analysis of the 
following: 
(i) The Commission’s general rec-
ommendations for increasing coordination 
of the delivery of Federal benefits for low- 
income families in order to reduce effective 
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marginal tax rates and decrease disincen-
tives to work and marriage. 
(ii) The relative usefulness of sudden 
benefit cutoffs (sometime referred to as 
‘‘cliffs’’) versus gradual reductions (some-
time referred to as ‘‘phaseouts’’) in Fed-
eral benefits on low-income workers’ behav-
ior relating to work and marriage. 
(iii) The interaction of Federal bene-
fits 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 appro-
priated annually avoiding the need to cre-
ate additional entitlement programs. 
(v) The extent to which low-income 
cohabiting couples (including couples with 
children and couples without children) re-
sist entering a legal marriage in order to 
maximize Federal benefits and avoid lost 
income. 
(B) RECOMMENDATIONS.— 
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(i) IN GENERAL.—A description of the 
Commission’s recommendations relating to 
the following: 
(I) Combining all Federal bene-
fits 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, pro-
viding 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 bene-
fits which are tax benefits for low-in-
come families into a coordinated cred-
it that minimizes phaseouts, encour-
ages work, is adjusted for family size, 
and does not penalize marriage. 
(IV) Establishing a single eligi-
bility standard for all Federal bene-
fits. 
(ii) REVENUE NEUTRALITY.—In mak-
ing recommendations under this subpara-
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graph, 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 rec-
ommendation 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 in-
clude 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 rec-
ommendations 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 ad-
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ditional alternative recommendations (to-
gether with a legislative blueprint as pro-
vided under subparagraph (B)(iii)). 
(c) MEMBERSHIP AND MEETINGS.— 
(1) MEMBERS.—The Commission shall be com-
posed of 15 members, of whom 4 shall be members 
described in paragraph (2) and 11 shall be ap-
pointed pursuant to paragraph (3). 
(2) CABINET MEMBERS SERVING ON COMMIS-
SION.— 
(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 se-
niority in terms of service as Secretary 
shall be nonvoting members, and 
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(ii) the member with the most senior-
ity 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 Representa-
tives, 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 rep-
resent the same political party rep-
resented 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 estab-
lished 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 
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(IV) at least 1 shall be a gov-
ernor 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 mem-
bers of the Commission described in para-
graph (2)(A) shall establish a list ranking 
of States from highest benefit providers to 
lowest benefit providers based on the fol-
lowing: 
(I) The level of benefits provided 
in the State under the Temporary As-
sistance 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 assist-
ance 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 para-
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graph (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 vot-
ing members of the Commission. 
(7) VACANCIES.—A vacancy on the Commission 
shall be filled in the same manner in which the origi-
nal 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 Commis-
sion shall receive no additional pay, allowances, or 
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benefits by reason of their service on the Commis-
sion. 
(9) EXPENSES.—Each member of the Commis-
sion 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 Commis-
sion. 
(B) COMPENSATION.—The executive direc-
tor shall be paid the rate of basic pay for level 
V of the Executive Schedule. 
(2) OTHER
STAFF.—The Chairman may ap-
point 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.— 
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(1) HEARINGS
AND
OTHER
ACTIVITIES.—For 
the purpose of carrying out its duties, the Commis-
sion 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 de-
termines to be necessary to carry out its duties. 
(3) DETAIL OF FEDERAL EMPLOYEES.—Upon 
the request of the Commission, the head of any Fed-
eral agency is authorized to detail, without reim-
bursement, any of the personnel of such agency to 
the Commission to assist the Commission in car-
rying out its duties. Any such detail shall not inter-
rupt or otherwise affect the civil service status or 
privileges of the Federal employee. 
(4) TECHNICAL
ASSISTANCE.—Upon the re-
quest 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 
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