I
106TH CONGRESS
2D SESSION
H. R. 3839
To establish a commission to study and make recommendations on marginal
tax rates for the working poor.
IN THE HOUSE OF REPRESENTATIVES
MARCH 6, 2000
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.
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 ‘‘Poverty Trap Study
Act of 2000’’.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Low income people are subject to many
taxes, including the Federal income tax, payroll
taxes, and State income taxes. In addition, eligibility
for many Federal and State programs for assistance
to the working poor, such as the earned income tax
credit, food stamps, housing assistance programs,
medicaid, child care assistance, and the women, in-
fants, and children (WIC) nutrition program is
based in part on income levels. The rates at which
the benefits from such programs are phased out
have the same effect as additional taxes imposed on
the beneficiaries.
(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, learning a more
lucrative trade, getting married, or engaging in
other economic or social activities.
SEC. 3. NATIONAL COMMISSION ON MARGINAL TAX RATES
FOR THE WORKING POOR.
(a) ESTABLISHMENT.—There is established a com-
mission to be known as the National Commission on Mar-
ginal Tax Rates for the Working Poor (in this section re-
ferred to as the ‘‘Commission’’).
(b) DUTIES OF THE COMMISSION.—The Commission
shall—
(1) determine the total effective marginal rate
of tax from all taxes and benefit program phaseouts
that persons are subject to (both as individuals and
as married couples) at all earnings levels between
$7,000 and $30,000 per year for at least 5 States,
including Wisconsin and California; and
(2) submit the report required under subsection
(f) to Congress.
(c) MEMBERSHIP.—
(1) NUMBER AND APPOINTMENT.—The Com-
mission shall be composed of 12 members, of
whom—
(A) 3 shall be appointed by the Speaker of
the House of Representatives;
(B) 2 shall be appointed by the Minority
Leader of the House of Representatives;
(C) 3 shall be appointed by the Majority
Leader of the Senate;
(D) 2 shall be appointed by the Minority
Leader of the Senate; and
(E) 2 shall be appointed by the President.
(2) CHAIRMAN.—The members of the Commis-
sion shall elect a chairman of the Commission at its
first meeting.
(3) BACKGROUND.—At least half of the mem-
bers appointed by each person who appoints mem-
bers under paragraph (1) shall be recognized experts
from think tanks or academia in the subject matter
reviewed by the Commission.
(4) TERMS
OF
APPOINTMENT.—The term of
any appointment under paragraph (1) to the Com-
mission shall be for the life of the Commission.
(5) MEETINGS.—The President shall designate
a member of the Commission to call the first meet-
ing 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 7
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
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) STAFF.—With the approval of the Commis-
sion, the executive director may appoint such per-
sonnel as the executive director considers appro-
priate.
(3) APPLICABILITY OF CIVIL SERVICE LAWS.—
The staff of the Commission shall be appointed with-
out regard to the provisions of title 5, United States
Code, governing appointments in the competitive
service, and shall be paid without regard to the pro-
visions of chapter 51 and subchapter III of chapter
53 of such title (relating to classification and Gen-
eral Schedule pay rates).
(4) EXPERTS
AND
CONSULTANTS.—With the
approval of the Commission, the executive director
may procure temporary and intermittent services
under section 3109(b) of title 5, United States Code.
(5) 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 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
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 Commis-
sion 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 re-
quest 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 Adminis-
trator of General Services shall provide to the Com-
mission 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 per-
sonnel detailed from the Government Printing Of-
fice, the Commission shall be deemed to be a com-
mittee of the Congress.
(f) REPORT.—Not later than 1 year after the date
of the enactment of this Act, the Commission shall submit
to Congress a report containing—
(1) the Commission’s findings; and
(2) recommendations for resolving any economic
and other disincentives found by the Commission
caused by the marginal tax rates to which the work-
ing poor are subject.
(g) TERMINATION.—The Commission shall terminate
30 days after the date of submission of the report required
in subsection (f). Section 14(a)(2)(B) of the Federal Advi-
sory Committee Act shall not apply to the Commission.
(h) LIMITATIONS
ON AUTHORIZATION
OF APPRO-
PRIATIONS.—There are authorized to be appropriated not
more than $900,000 to carry out this section.
Æ