,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #bdgj  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,june #bj1 #bjac ,mr4 
,petri 7= himself & ,ms4 ,tsongas7      
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means1 & 9    
addition to ! ,committees on            
,agriculture1 ,vet]ans' ,affairs1       
,f9ancial ,s]vices1 ,en]gy & ,comm]ce1 &
 ,education & ! ,work=ce1 = a p]iod to  
be subsequ5tly det]m9$ by ! ,speak]1 9  
ea* case = consid]ation ( su* provisions
 z fall )9 ! jurisdiction ( ! committee 
conc]n$  ,a ,,bill  ,to e/abli% !       
,national ,commission on ,effective     
,m>g9al ,tax ,rates = ,l[-,income       
,families4  #a4 ,%ort title ,?is ,act   
may be cit$ z ! ,mak+ ,"w & ,m>riage    
,pay ,act ( #bjac4  #b4 ,f9d+s ,congress
 f9ds ! foll[+3  7#a7 ,! take-home pay (
 l[-income families is subject to       
r$uctions f _m s\rces1 includ+ ! ,f$]al 
income tax1 ,social ,security payroll   
taxes1 & ,/ate income taxes4 ,9         
addition1 eligibility = _m ,f$]al &     

,/ate programs = assi/ance to work+     
families1 su* z ! e>n$ income tax cr$it1
 ! *ild tax cr$it1 supplem5tal          
nutritional assi/ance program1 h\s+     
assi/ance programs1 ,f$]al & ,/ate heal?
 c>e programs1 *ild c>e assi/ance1 &    
tempor>y assi/ance to ne$y families1 is 
bas$ 9 "p on income levels4 ,! rates at 
:i* ! b5efits f su* programs are phas$  
out h ! same disposable income r$uc+    
effect z escalat+ m>g9al tax rates4     
7#b7 ,! total effective m>g9al rate (   
tax = additional income e>n$ by         
l[-income p c exce$ #ajj p]c5t & c be a 
dis9c5tive to work+ m h\rs1 gett+ a     
raise1 seek+ education t[>d a m         
lucrative trade1 gett+ m>ri$1 or engag+ 
9 o!r economic or social activities4    
7#c7 ,congress has enact$ ea* ( ^!      
programs )\t full consid]ation ( !      
impact x w\ld h on o!r exi/+ programs4  
,z a result1 ! /ructure ( ! ,unit$      
,/ates sy/em = ! support ( l[-income    
families is uncoord9at$ & conta9s       
features :i* "w aga9/ ! goal ( enc\rag+ 

families to "w _! way t[>d              
self-suffici5cy4  #c4 ,def9itions ,=    
purposes ( ?is ,act3  7#a7 ,l[-income ,!
 t]m l[-income means1 ) respect to any  
individual or family gr\p1 an individual
 or family gr\p1 z ! case may be1 ^:    
income is n m ?an #bbe p]c5t ( ! pov]ty 
l9e 7z det]m9$ "u section #fgc7b7 ( !   
,community ,s]vices ,block ,grant ,act  
7#db ,u4,s4,c4 #iijb7b7774  7#b7 ,f$]al 
b5efits ,! t]m ,f$]al b5efits means--   
7,a7 d$uctions1 cr$its1 & o!r tax       
b5efits available to l[-income taxpay]s 
"u ! ,int]nal ,rev5ue ,code ( #aihf1    
includ+--  7i7 ! e>n$ income tax cr$it  
"u section #cb ( su* ,code1  7ii7 ! *ild
 tax cr$it "u section #bd ( su* ,code1 &
  7iii7 ! dep5d5t c>e tax cr$it "u      
section #ba ( su* ,code1 &  7,b7 ,f$]al 
assi/ance programs = l[-income          
individuals & families1 includ+--  7i7 !
 supplem5tal nutritional assi/ance      
program e/abli%$ "u ! ,food & ,nutrition
 ,act ( #bjjh 7#g ,u4,s4,c4 #bjaa et    
seq471  7ii7 any assi/ance1 loan1 loan  

gu>antee1 h\s+1 h\s+ assi/ance1 or o!r  
h\s+ relat$ program adm9i/]$1 9 :ole or 
9 "p1 by ! ,secret>y ( ,h\s+ & ,urban   
,developm5t1 ! ,secret>y ( ,vet]ans     
,affairs1 or any o!r ,f$]al ag5cy h\s+  
assi/ance1 includ+ ! project-bas$ &     
t5ant-bas$ r5tal assi/ance programs "u  
section #h ( ! ,unit$ ,/ates ,h\s+ ,act 
( #aicg1  7iii7 any ,f$]al programs     
provid+ *ild c>e assi/ance1 &  7iv7     
,f$]al programs provid+ heal? c>e       
assi/ance1 includ+ assi/ance "u !       
,m$icaid program e/abli%$ "u title ,,xix
 ( ! ,social ,security ,act1 ! ,/ate    
,*ildr5's ,heal? ,insurance ,program "u 
title ,,xxi ( su* ,act1 & ! ,pati5t     
,protection & ,af=dable ,c>e ,act4  7#c7
 ,effective m>g9al tax rate ,! t]m      
effective m>g9al tax rate means ! co/1 9
 t]ms ( bo? taxes & loss ( ,f$]al       
b5efits1 = ea* doll> e>n$ by a l[-income
 individual4  #d4 ,national ,commission 
on ,effective ,m>g9al ,tax ,rates =     
,l[-,income ,families  7a7 ,e/abli%m5t  
,!re is e/abli%$ a commission to be kn[n

 z ! ,national ,commission on ,effective
 ,m>g9al ,tax ,rates = ,l[-,income      
,families 7h]e9aft] 9 ?is ,act ref]r$ to
 z ! ,commission74  7b7 ,duties (       
commission  7#a7 ,9 g5]al ,! ,commission
 %all /udy & make recomm5dations on     
policy *anges to mitigate ! impact ( !  
effective m>g9al tax rate & ( phase\ts 9
 ,f$]al b5efits on l[-income e>n]s & _! 
families4  7#b7 ,report ,n lat] ?an #ah 
mon?s aft] ! fir/ meet+ ( ! ,commission1
 ! ,commission %all submit to !         
,presid5t & to ! ,*airman & ,rank+ memb]
 ( ea* ,committee ( ! ,h\se & ! ,s5ate t
 has legislative jurisdiction ov] any ( 
! ,f$]al programs or rev5ue policies    
address$ !re91 a report conta9+ !       
foll[+3  7,a7 ,analysis ,a detail$      
analysis ( ! foll[+3  7i7 ,!            
,commission's g5]al recomm5dations =    
increas+ coord9ation ( ! deliv]y (      
,f$]al b5efits = l[-income families 9   
ord] to r$uce effective m>g9al tax rates
 & decrease dis9c5tives to "w & m>riage4
  7ii7 ,! relative usefulness ( sudd5   

b5efit cut(fs 7sometime ref]r$ to z     
cliffs7 v]sus gradual r$uctions         
7sometime ref]r$ to z phase\ts7 9 ,f$]al
 b5efits on l[-income work]s' behavior  
relat+ to "w & m>riage4  7iii7 ,!       
int]action ( ,f$]al b5efits & ,/ate     
assi/ance programs1 & ! pot5tial b5efits
 ( /ructur+ ,/ate programs consi/5t ) ! 
design ( ,f$]al assi/ance4  7iv7 ,!     
maximum ext5t to :i* fund+ = ,f$]al     
b5efits c be appropriat$ annually avoid+
 ! ne$ to create additional entitlem5t  
programs4  7v7 ,! ext5t to :i* l[-income
 cohabit+ c\ples 7includ+ c\ples )      
*ildr5 & c\ples )\t *ildr57 resi/ ent]+ 
a legal m>riage 9 ord] to maximize      
,f$]al b5efits & avoid lo/ income4  7,b7
 ,recomm5dations  7i7 ,9 g5]al ,a       
description ( ! ,commission's           
recomm5dations relat+ to ! foll[+3  7,i7
 ,comb9+ all ,f$]al b5efits :i* are n   
tax b5efits into a s+le flexible v\*]1  
all[+ ! b5efici>y to allocate funds )9  
ea* ( ! support$ b5efit areas4  7,,ii7  
,to ! ext5t possible1 provid+ all       

eligible families ) equal v\*] funds    
describ$ 9 subclause 7,i71 v>y+ only =  
income1 family size1 & ! pres5ce (      
*ildr5 9 ! h\sehold4  7,,iii7 ,comb9+   
all ,f$]al b5efits :i* are tax b5efits =
 l[-income families into a coord9at$    
cr$it t m9imizes phase\ts1 enc\rages "w1
 is adju/$ = family size1 & does n      
p5alize m>riage4  7,,iv7 ,e/abli%+ a    
s+le eligibility /&>d = all ,f$]al      
b5efits4  7ii7 ,rev5ue neutrality ,9    
mak+ recomm5dations "u ?is subp>agraph1 
! ,commission %all consid] ! ne$ to     
ma9ta9 rev5ue neutrality 9 ord] to avoid
 increas+ ! deficit4  7iii7 ,bluepr9t = 
legislation ,! ,commission %all provide 
a bluepr9t = legislative proposals = ea*
 policy recomm5dation "u ?is            
subp>agraph4  7,c7 ,o!r matt]s  7i7     
,non-feasibility ,%\ld ! ,commission    
conclude t ! policy framework describ$ 9
 subp>agraph 7,b7 is n feasible1 !      
,commission %all include 9 its report-- 
7,i7 a detail$ analysis ( su* policy    
framework1  7,,ii7 a compreh5sive       

explanation ( ! reasons = its           
conclusion1 &  7,,iii7 "o or m policy   
recomm5dations address+ ! problem (     
effective m>g9al tax rates on l[-income 
families4  7ii7 ,additional matt] ,if ! 
,commission includes 9 its report a     
policy plan us+ ! policy elem5ts        
describ$ 9 subp>agraph 7,b71 x may also 
include additional alt]native           
recomm5dations 7toge!r ) a legislative  
bluepr9t z provid$ "u subp>agraph       
7,b77iii774  7c7 ,memb]%ip & meet+s     
7#a7 ,memb]s ,! ,commission %all be     
compos$ ( #ae memb]s1 ( :om #d %all be  
memb]s describ$ 9 p>agraph 7#b7 & #aa   
%all be appo9t$ pursuant to p>agraph    
7#c74  7#b7 ,cab9et memb]s s]v+ on      
,commission  7,a7 ,9 g5]al ,! memb]s    
describ$ 9 ?is p>agraph are ! foll[+    
,secret>ies3  7i7 ,! ,secret>y ( !      
,treasury4  7ii7 ,! ,secret>y (         
,agriculture4  7iii7 ,! ,secret>y (     
,h\s+ & ,urban ,developm5t4  7iv7 ,!    
,secret>y ( ,heal? & ,human ,s]vices4   
7,b7 ,non-vot+ memb]s2 *airman ,( !     

memb]s ( ! ,commission describ$ 9       
subp>agraph 7,a7--  7i7 ! #b memb]s ) ! 
lea/ s5iority 9 t]ms ( s]vice z         
,secret>y %all be nonvot+ memb]s1  7ii7 
! memb] ) ! mo/ s5iority 9 t]ms ( s]vice
 z ,secret>y %all be ! *airman1 &  7iii7
 9 ! ev5t t ! head ( a cab9et dep>tm5t  
s]v+ z a memb] ( ?is ,commission "u     
subp>agraph 7,a7 is replac$1 & t ,cab9et
 ,secret>y 0 s]v+ z a vot+ memb] ( !    
,commission or z ! ,*airman ( !         
,commission1 ! incom+ ,secret>y %all    
assume su* a role on ! ,commission )\t  
reg>d to ! s5iority crit]ia e/abli%$ "u 
?is subp>agraph4  7#c7 ,appo9t$ memb]s  
7,a7 ,congressional appo9tm5ts ,!       
,speak] ( ! ,h\se ( ,repres5tatives1 !  
m9ority lead] ( ! ,h\se (               
,repres5tatives1 ! majority lead] ( !   
,s5ate1 & ! m9ority lead] ( ! ,s5ate    
%all ea* appo9t #b memb]s1 :o %all ea*  
be exp]ts 9 ! subject matt] ( !         
,commission4  7,b7 ,gov]nors  7i7 ,9    
g5]al ,! ,presid5t %all appo9t #c ,/ate 
gov]nors1 ( :om--  7,i7 no m ?an #a %all

 repres5t ! same political p>ty         
repres5t$ by ! ,presid5t1  7,,ii7 #a    
%all be a gov]nor ( a ,/ate :i* is rank$
 9 ! top ?ird on ! li/ ( b5efit provid]s
 e/abli%$ "u clause 7ii71  7,,iii7 #a   
%all be a gov]nor ( a ,/ate :i* is rank$
 9 ! middle ?ird on ! li/ ( b5efit      
provid]s e/abli%$ "u clause 7ii71 &     
7,,iv7 at lea/ #a %all be a gov]nor ( a 
,/ate :i* is rank$ 9 ! l[e/ ?ird on !   
li/ ( b5efit provid]s e/abli%$ "u clause
 7ii74  7ii7 ,rank+ ( ,/ates ,! memb]s (
 ! ,commission describ$ 9 p>agraph      
7#b77;,a7 %all e/abli% a li/ rank+ (    
,/ates f highe/ b5efit provid]s to l[e/ 
b5efit provid]s bas$ on ! foll[+3  7,i7 
,! level ( b5efits provid$ 9 ! ,/ate "u 
! ,tempor>y ,assi/ance to ,ne$y         
,families "u title ,,iv ( ! ,social     
,security ,act4  7,,ii7 ,! av]age       
fair-m>ket value ( r5tal h\s+ 9 ! ,/ate4
  7,,iii7 ,! ,/ate %>e ( assi/ance      
provid$ "u a ,/ate plan "u ! ,m$icaid   
program "u title ,,xix ( ! ,social      
,security ,act & a ,/ate *ild heal? plan

 "u ! ,/ate ,*ildr5's ,heal? ,insurance 
,program "u title ,,xxi ( su* ,act4     
7,c7 ,date = orig9al appo9tm5t ,!       
appo9t+ au?orities describ$ 9 p>agraph  
7#a7 %all appo9t ! initial memb]s ( !   
,commission n lat] ?an #cj days aft] !  
date ( enactm5t ( ?is ,act4  7,d7 ,t]ms 
( appo9tm5t ,! t]m ( any appo9tm5t %all 
be = ! life ( ! ,commission4  7#d7      
,designees ,a memb] ( ! ,commission s]v+
 "u p>agraph 7#b71 appo9t$ "u p>agraph  
7#b77;,b71 or appo9t$ "u p>agraph 7#c7  
may appo9t a designee to s]ve on !      
,commission 9 su* memb]'s place4  7#e7  
,meet+s ,! *airman %all call ! fir/     
meet+ ( ! ,commission4 ,!reaft]1 !      
,commission %all meet at ! call ( its   
*airman or a majority ( its memb]s4     
7#f7 ,quorum ,a quorum %all consi/ ( #i 
vot+ memb]s ( ! ,commission4  7#g7      
,vacancies ,a vacancy on ! ,commission  
%all be fill$ 9 ! same mann] 9 :i* !    
orig9al appo9tm5t 0 made1 n lat] ?an #cj
 days aft] ! ,commission is giv5 notice 
( ! vacancy1 & %all n affect ! p[] ( !  

rema9+ memb]s to execute ! duties ( !   
,commission4  7#h7 ,comp5sation ,memb]s 
( ! ,commission %all receive no         
additional pay1 all[ances1 or b5efits by
 reason ( _! s]vice on ! ,commission4   
7#i7 ,exp5ses ,ea* memb] ( ! ,commission
 %all receive travel exp5ses & p] diem 9
 lieu ( subsi/5ce 9 accordance )        
sections #egjb & #egjc ( title #e1      
,unit$ ,/ates ,code4  7d7 ,commission   
/aff  7#a7 ,appo9tm5t & comp5sation ,!  
*airman1 9 accordance ) rules agre$ ^u  
by ! ,commission1 may appo9t & fix !    
comp5sation ( a /aff director & su* o!r 
p]sonnel z may be necess>y to enable !  
,commission to c>ry out its functions1  
)\t reg>d to ! provisions ( title #e1   
,unit$ ,/ates ,code1 gov]n+ appo9tm5ts 9
 ! competitive s]vice1 & )\t reg>d to ! 
provisions ( *apt] #ea & sub*apt] ,,iii 
( *apt] #ec ( su* title relat+ to       
classification & ,g5]al ,s*$ule pay     
rates1 except t no rate ( pay fix$ "u   
?is subsection may exce$ ! equival5t ( t
 payable = a position at level ,v ( !   

,executive ,s*$ule "u section #ecaf (   
title #e1 ,unit$ ,/ates ,code4  7#b7    
,p]sonnel z f$]al employees  7,a7 ,9    
g5]al ,! executive director & any       
p]sonnel ( ! ,commission :o are         
employees %all be employees "u section  
#baje ( title #e1 ,unit$ ,/ates ,code1 =
 purposes ( *apt]s #fc1 #ha1 #hc1 #hd1  
#he1 #hg1 #hi1 & #ij ( t title4  7,b7   
,memb]s ( commission ,subp>agraph 7,a7  
%all n be con/ru$ to apply to memb]s ( !
 ,commission4  7,c7 ,detailees ,any     
,f$]al ,gov]nm5t employee detail$ to !  
,commission %all reta9 ! rights1 /atus1 
& privileges ( 8 or h] regul> employm5t 
)\t int]ruption4  7,d7 ,exp]t &         
consultant s]vices ,! ,commission is    
au?oriz$ to procure ! s]vices ( exp]ts &
 consultants 9 accordance ) section     
#caji ( title #e1 ,unit$ ,/ates ,code1 b
 at rates n to exce$ ! daily rate paid a
 p]son occupy+ a position at level ,,iv 
( ! ,executive ,s*$ule "u section #ecae 
( title #e1 ,unit$ ,/ates ,code4  7,e7  
,volunte] s]vices ,not)/&+ section #acdb

 ( title #ca1 ,unit$ ,/ates ,code1 !    
,commission may accept & use volunt>y & 
uncomp5sat$ s]vices z ! ,commission     
det]m9es necess>y4  7e7 ,p[]s (         
commission  7#a7 ,he>+s & o!r activities
 ,= ! purpose ( c>ry+ out its duties1 ! 
,commission may hold su* he>+s &        
und]take su* o!r activities z !         
,commission det]m9es to be necess>y to  
c>ry out its duties4  7#b7 ,detail (    
,f$]al employees ,^u ! reque/ ( !       
,commission1 ! head ( any ,f$]al ag5cy  
is au?oriz$ to detail1 on a reimbursable
 basis1 any ( ! p]sonnel ( su* ag5cy to 
! ,commission to assi/ ! ,commission 9  
c>ry+ out its duties4 ,any su* detail   
%all n int]rupt or o!rwise affect !     
civil s]vice /atus or privileges ( !    
,f$]al employee4  7#c7 ,contract+ ,!    
,commission may1 to su* ext5t & 9 su*   
am\nts z are provid$ 9 appropriation    
,acts1 ent] into contracts to enable !  
,commission to dis*>ge its duties "u ?is
 title4  7#d7 ,te*nical assi/ance ,^u ! 
reque/ ( ! ,commission1 ! head ( a      

,f$]al ag5cy %all provide su* te*nical  
assi/ance to ! ,commission z !          
,commission det]m9es to be necess>y to  
c>ry out its duties4  7#e7 ,use ( mails 
,! ,commission may use ! ,unit$ ,/ates  
mails 9 ! same mann] & "u ! same        
conditions z ,f$]al ag5cies & %all1 =   
purposes ( ! frank1 be consid]$ a       
commission ( ,congress z describ$ 9     
section #cbae ( title #ci1 ,unit$ ,/ates
 ,code4  7#f7 ,in=mation f f$]al ag5cies
  7,a7 ,9 g5]al ,! ,commission is       
au?oriz$ to secure directly f any       
executive dep>tm5t1 bureau1 ag5cy1 bo>d1
 commission1 (fice1 indep5d5t           
e/abli%m5t1 or in/rum5tality ( !        
gov]nm5t1 in=mation1 sugge/ions1        
e/imates1 & /ati/ics = ! purposes ( ?is 
title4 ,ea* dep>tm5t1 bureau1 ag5cy1    
bo>d1 commission1 (fice1 indep5d5t      
e/abli%m5t1 or in/rum5tality %all1 to ! 
ext5t au?oriz$ by law1 furni% su*       
in=mation1 sugge/ions1 e/imates1 &      
/ati/ics directly to ! ,commission1 ^u  
reque/ made by ! *airman1 ! *airman (   

any subcommittee creat$ by a majority ( 
! ,commission1 or any memb] designat$ by
 a majority ( ! ,commission4  7,b7      
,receipt1 h&l+1 /orage1 & dissem9ation  
,in=mation %all only be receiv$1 h&l$1  
/or$1 & dissem9at$ by memb]s ( !        
,commission & its /aff consi/5t ) all   
applicable /atutes1 regulations1 &      
,executive ord]s4  7#g7 ,adm9i/rative   
support s]vices ,^u ! reque/ ( !        
,commission1 ! ,adm9i/rator ( ,g5]al    
,s]vices %all provide to ! ,commission  
on a reimbursable basis su* adm9i/rative
 support s]vices z ! ,commission may    
reque/4  7#h7 ,pr9t+ ,= purposes ( co/s 
relat+ to pr9t+ & b9d+1 includ+ ! co/ ( 
p]sonnel detail$ f ! ,gov]nm5t ,pr9t+   
,(fice1 ! ,commission %all be deem$ to  
be a committee ( ! ,congress4  7f7      
,t]m9ation ,! ,commission %all t]m9ate  
#cj days aft] ! date ( submission ( !   
report requir$ 9 subsection 7b74  7g7   
,limitations on au?orization (          
appropriations ,!re are au?oriz$ to be  
appropriat$ #a1ejj1jjj to c>ry out ?is  

section4 ,any am\nt appropriat$ pursuant
 to ! au?ority ( ?is subsection %all    
rema9 available )\t fiscal ye>          
limitation until exp5d$4