Making Work and Marriage Pay Act of 2013 - Establishes the National Commission on Effective Marginal Tax Rates for Low-Income Families to study, report, and make recommendations on policy changes to mitigate the impact of the effective marginal tax rate and of phaseouts in federal benefits on low-income earners and their families.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2470 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 2470
To establish the National Commission on Effective Marginal Tax Rates
for Low-Income Families.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 20, 2013
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, Energy and Commerce, and Education and the Workforce, 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 Representatives 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
2013''.
SEC. 2. FINDINGS.
Congress finds the following:
(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 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
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 education toward a more lucrative trade, getting
married, or engaging in other economic or social activities.
(3) Congress has enacted each of these programs 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 support of low-income families is
uncoordinated and contains features which work against the goal
of encouraging families to work their way toward self-
sufficiency.
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 determined under section
673(2) of the Community Services Block Grant Act (42 U.S.C.
9902(2))).
(2) Federal benefits.--The term ``Federal benefits''
means--
(A) deductions, credits, and other tax benefits
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--
(i) the supplemental nutritional assistance
program established under the Food and
Nutrition Act of 2008 (7 U.S.C. 2011 et seq.),
(ii) any assistance, loan, loan guarantee,
housing, housing assistance, or other housing
related program administered, 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,
including 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, the State Children's
Health Insurance Program under title XXI of
such Act, and the 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 commission to be known
as the ``National Commission on Effective 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-income earners and their families.
(2) Report.--Not later than 18 months after the first
meeting of the Commission, the Commission shall submit to the
President and to the Chairman and Ranking member of each
Committee of the House and the Senate that has legislative
jurisdiction over any of the Federal programs or revenue
policies addressed therein, a report containing the following:
(A) Analysis.--A detailed analysis of the
following:
(i) The Commission's general
recommendations for increasing coordination of
the delivery of Federal benefits for low-income
families in order to reduce effective marginal
tax rates and decrease disincentives to work
and marriage.
(ii) The relative usefulness of sudden
benefit cutoffs (sometime referred to as
``cliffs'') versus gradual reductions (sometime
referred to as ``phaseouts'') in Federal
benefits on low-income workers' behavior
relating to work and marriage.
(iii) The interaction of Federal benefits
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 appropriated
annually avoiding the need to create additional
entitlement programs.
(v) The extent to which low-income
cohabiting couples (including couples with
children and couples without children) resist
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 benefits
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,
providing 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
benefits which are tax benefits for
low-income families into a coordinated
credit that minimizes phaseouts,
encourages work, is adjusted for family
size, and does not penalize marriage.
(IV) Establishing a single
eligibility standard for all Federal
benefits.
(ii) Revenue neutrality.--In making
recommendations under this subparagraph, 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
recommendation 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 include 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
recommendations 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 additional alternative
recommendations (together with a legislative
blueprint as provided under subparagraph
(B)(iii)).
(c) Membership and Meetings.--
(1) Members.--The Commission shall be composed of 15
members, of whom 4 shall be members described in paragraph (2)
and 11 shall be appointed pursuant to paragraph (3).
(2) Cabinet members serving on commission.--
(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 seniority
in terms of service as Secretary shall be
nonvoting members,
(ii) the member with the most seniority 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 established under this subparagraph.
(3) Appointed members.--
(A) Congressional appointments.--The Speaker of the
House of Representatives, the minority leader of the
House of Representatives, 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 represent
the same political party represented 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
established 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 governor
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 members of the
Commission described in paragraph (2)(A) shall
establish a list ranking of States from highest
benefit providers to lowest benefit providers
based on the following:
(I) The level of benefits provided
in the State under the Temporary
Assistance 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 assistance
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 paragraph (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 paragraph (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 voting members of
the Commission.
(7) Vacancies.--A vacancy on the Commission shall be filled
in the same manner in which the original 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 Commission shall receive
no additional pay, allowances, or benefits by reason of their
service on the Commission.
(9) Expenses.--Each member of the Commission 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.--
(1) Appointment and compensation.--The chairman, in
accordance with rules agreed upon by the Commission, may
appoint and fix the compensation 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 chapter 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 purposes of chapters 63, 81, 83, 84, 85, 87,
89, and 90 of that title.
(B) Members of commission.--Subparagraph (A) shall
not be construed to apply to members of the Commission.
(C) Detailees.--Any Federal Government employee
detailed to the Commission shall retain the rights,
status, and privileges of his or her regular employment
without interruption.
(D) Expert and consultant services.--The Commission
is authorized to procure the services of experts and
consultants in accordance with section 3109 of title 5,
United States Code, but at rates not to exceed the
daily rate paid a person occupying a position at level
IV of the Executive Schedule under section 5315 of
title 5, United States Code.
(E) Volunteer services.--Notwithstanding section
1342 of title 31, United States Code, the Commission
may accept and use voluntary and uncompensated services
as the Commission determines necessary.
(e) Powers of Commission.--
(1) Hearings and other activities.--For the purpose of
carrying out its duties, the Commission may hold such hearings
and undertake such other activities as the Commission
determines to be necessary to carry out its duties.
(2) Detail of federal employees.--Upon the request of the
Commission, the head of any Federal agency is authorized to
detail, on a reimbursable basis, any of the personnel of such
agency to the Commission to assist the Commission in carrying
out its duties. Any such detail shall not interrupt or
otherwise affect the civil service status or privileges of the
Federal employee.
(3) Contracting.--The Commission may, to such extent and in
such amounts as are provided in appropriation Acts, enter into
contracts to enable the Commission to discharge its duties
under this title.
(4) Technical assistance.--Upon the request 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) Information from federal agencies.--
(A) In general.--The Commission is authorized to
secure directly from any executive department, bureau,
agency, board, commission, office, independent
establishment, or instrumentality of the government,
information, suggestions, estimates, and statistics for
the purposes of this title. Each department, bureau,
agency, board, commission, office, independent
establishment, or instrumentality shall, to the extent
authorized by law, furnish such information,
suggestions, estimates, and statistics directly to the
Commission, upon request made by the chairman, the
chairman of any subcommittee created by a majority of
the Commission, or any member designated by a majority
of the Commission.
(B) Receipt, handling, storage, and
dissemination.--Information shall only be received,
handled, stored, and disseminated by members of the
Commission and its staff consistent with all applicable
statutes, regulations, and Executive orders.
(7) Administrative support services.--Upon the request of
the Commission, the Administrator of General Services shall
provide to the Commission 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 personnel detailed from the
Government Printing Office, the Commission shall be deemed to
be a committee of the Congress.
(f) Termination.--The Commission shall terminate 30 days after the
date of submission of the report required in subsection (b).
(g) Limitations on Authorization of Appropriations.--There are
authorized to be appropriated $1,500,000 to carry out this section. Any
amount appropriated pursuant to the authority of this subsection shall
remain available without fiscal year limitation until expended.
<all>
Introduced in House
Introduced in House
Sponsor introductory remarks on measure. (CR E927)
Referred to the Committee on Ways and Means, and in addition to the Committees on Agriculture, Veterans' Affairs, Financial Services, Energy and Commerce, and Education and the Workforce, 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.
Referred to the Committee on Ways and Means, and in addition to the Committees on Agriculture, Veterans' Affairs, Financial Services, Energy and Commerce, and Education and the Workforce, 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.
Referred to the Committee on Ways and Means, and in addition to the Committees on Agriculture, Veterans' Affairs, Financial Services, Energy and Commerce, and Education and the Workforce, 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.
Referred to the Committee on Ways and Means, and in addition to the Committees on Agriculture, Veterans' Affairs, Financial Services, Energy and Commerce, and Education and the Workforce, 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.
Referred to the Committee on Ways and Means, and in addition to the Committees on Agriculture, Veterans' Affairs, Financial Services, Energy and Commerce, and Education and the Workforce, 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.
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Referred to the Committee on Ways and Means, and in addition to the Committees on Agriculture, Veterans' Affairs, Financial Services, Energy and Commerce, and Education and the Workforce, 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.
Referred to the Subcommittee on Health.
Referred to the Subcommittee on Economic Opportunity.
Referred to the Subcommittee on Higher Education and Workforce Training.
Referred to the Subcommittee on Department Operations, Oversight, and Nutrition.