Patient Protection and Affordable Care 
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 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 18 months after 
the first meeting of the Commission, the Commis-
sion shall submit to the President and to the Chair-
man and Ranking member of each Committee of the 
House and the Senate that has legislative jurisdic-
tion over any of the Federal programs or revenue 
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policies addressed therein, a report 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 
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. 
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(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.— 
(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 subclause 
(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-
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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-
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 
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