[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 618 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 618

To establish a commission to study and make recommendations on marginal 
                    tax rates for the working poor.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 5, 2003

  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 Representatives 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 2003''.

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, infants, 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 commission to be known 
as the National Commission on Marginal Tax Rates for the Working Poor 
(in this section referred 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 Commission 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 Commission shall elect a 
        chairman of the Commission at its first meeting.
            (3) Background.--At least half of the members appointed by 
        each person who appoints members 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 Commission shall be for the life of 
        the Commission.
            (5) Meetings.--The President shall designate a member of 
        the Commission to 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 7 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) Staff and Support Services.--
            (1) Executive director.--
                    (A) Appointment.--The Chairman shall appoint an 
                executive director of the Commission.
                    (B) Compensation.--The executive director shall be 
                paid the rate of basic pay for level V of the Executive 
                Schedule.
            (2) Staff.--With the approval of the Commission, the 
        executive director may appoint such personnel as the executive 
        director considers appropriate.
            (3) Applicability of civil service laws.--The staff of the 
        Commission shall be appointed without regard to the provisions 
        of title 5, United States Code, governing appointments in the 
        competitive service, and shall be paid 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).
            (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 Commission 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 determines to be necessary to 
        carry out its duties.
            (3) Detail of federal employees.--Upon the request of the 
        Commission, the head of any Federal agency is authorized to 
        detail, without reimbursement, 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.
            (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) Obtaining information.--The Commission 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 request 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 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) 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 working 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 Advisory Committee Act shall not apply to 
the Commission.
    (h) Limitations on Authorization of Appropriations.--There are 
authorized to be appropriated not more than $900,000 to carry out this 
section.
                                 <all>