I 
112TH CONGRESS 
1ST SESSION H. R. 2506 
To establish the National Commission on Effective Marginal Tax Rates for 
Low-Income Families. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 12, 2011 
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, En-
ergy and Commerce, and Education and the Workforce, for a period to 
be subsequently determined by the Speaker, in each case for consider-
ation 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 2011’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
VerDate Mar 15 2010 
03:05 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H2506.IH
H2506
jbell on DSKDVH8Z91PROD with BILLS
(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 working families, such as the earned income tax 
credit, the child tax credit, supplemental nutritional 
assistance program, housing assistance programs, 
Federal and State health care programs, child care 
assistance, and temporary assistance to needy fami-
lies, is based in part on income levels. The rates at 
which the benefits from such programs are phased 
out have the same disposable income reducing 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 full consideration of the impact it 
would have on other existing programs. As a result, 
the structure of the United States system for the 
VerDate Mar 15 2010 
03:05 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H2506.IH
H2506
jbell on DSKDVH8Z91PROD with BILLS
support 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— 
VerDate Mar 15 2010 
03:05 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H2506.IH
H2506
jbell on DSKDVH8Z91PROD with BILLS
(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, 
VerDate Mar 15 2010 
03:05 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H2506.IH
H2506
jbell on DSKDVH8Z91PROD with BILLS
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 
policies addressed therein, a report containing the 
following: 
(A) ANALYSIS.—A detailed analysis of the 
following: 
VerDate Mar 15 2010 
03:05 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H2506.IH
H2506
jbell on DSKDVH8Z91PROD with BILLS
(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. 
(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 
VerDate Mar 15 2010 
03:05 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H2506.IH
H2506
jbell on DSKDVH8Z91PROD with BILLS
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 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. 
VerDate Mar 15 2010 
03:05 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H2506.IH
H2506
jbell on DSKDVH8Z91PROD with BILLS
(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 
(III) one or more policy rec-
ommendations addressing the problem 
VerDate Mar 15 2010 
03:05 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H2506.IH
H2506
jbell on DSKDVH8Z91PROD with BILLS
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-
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. 
VerDate Mar 15 2010 
03:05 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H2506.IH
H2506
jbell on DSKDVH8Z91PROD with BILLS
(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, 
(ii) the member with the most senior-
ity in terms of service as Secretary shall be 
the chairman, and 
(iii) in the event that the head of a 
cabinet department serving as a member of 
this Commission under subparagraph (A) 
is replaced, and that Cabinet Secretary 
was serving as a voting member of the 
Commission or as the Chairman of the 
Commission, the incoming Secretary shall 
assume such a role on the Commission 
without regard to the seniority criteria es-
tablished under this subparagraph. 
(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 
VerDate Mar 15 2010 
03:05 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H2506.IH
H2506
jbell on DSKDVH8Z91PROD with BILLS
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 
(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 
VerDate Mar 15 2010 
03:05 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H2506.IH
H2506
jbell on DSKDVH8Z91PROD with BILLS
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-
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), appointed under para-
VerDate Mar 15 2010 
03:05 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H2506.IH
H2506
jbell on DSKDVH8Z91PROD with BILLS
graph (2)(B), or appointed under paragraph (3) 
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 
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) COMMISSION STAFF.— 
VerDate Mar 15 2010 
03:05 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H2506.IH
H2506
jbell on DSKDVH8Z91PROD with BILLS
(1) APPOINTMENT AND COMPENSATION.—The 
chairman, in accordance with rules agreed upon by 
the Commission, may appoint and fix the compensa-
tion of a staff director and such other personnel as 
may be necessary to enable the Commission to carry 
out its functions, without regard to the provisions of 
title 5, United States Code, governing appointments 
in the competitive service, and without regard to the 
provisions of chapter 51 and subchapter III of chap-
ter 53 of such title relating to classification and 
General Schedule pay rates, except that no rate of 
pay fixed under this subsection may exceed the 
equivalent of that payable for a position at level V 
of the Executive Schedule under section 5316 of title 
5, United States Code. 
(2) PERSONNEL AS FEDERAL EMPLOYEES.— 
(A) IN GENERAL.—The executive director 
and any personnel of the Commission who are 
employees shall be employees under section 
2105 of title 5, United States Code, for pur-
poses of chapters 63, 81, 83, 84, 85, 87, 89, 
and 90 of that title. 
(B) MEMBERS OF COMMISSION.—Subpara-
graph (A) shall not be construed to apply to 
members of the Commission. 
VerDate Mar 15 2010 
03:05 Jul 13, 2011
Jkt 099200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H2506.IH
H2506
jbell on DSKDVH8Z91PROD with BILLS