,,ii  #aaeth ,,congress  #ast ,session  
,s4 #aich  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,october #e1   
#bjag,ms4 ,baldwin 7for herself and ,mr4
 ,booker7 introduced the following bill2
 which was read twice and referred to   
the ,committee on ,finance  ,a ,,bill   
,to establish a policy framework that   
offers and rewards work1 strengthens the
 incentive to work1 greatly reduces     
poverty1 and creates new jobs in the    
,united ,states1 and for other purposes4
  #a4 ,short title2 table of contents   
7a7 ,short title ,this ,act may be cited
 as the ,stronger ,way ,act4  7b7 ,table
 of contents ,the table of contents of  
this ,act is as follows3 ,sec4 #a4      
,short title2 table of contents4,,title 
,i--,transitional jobs program,sec4     
#aja4 ,purposes4,sec4 #ajb4             
,definitions4,sec4 #ajc4 ,transitional  
jobs4,sec4 #ajd4 ,authorization of      
appropriations4,,title ,,ii--,poverty   
reduction tax credits,sec4 #bja4 ,reform
 of earned income credit4,sec4 #bjb4    

,establishment of fully refundable child
 tax credit4  ,i ,transitional jobs     
program  #aja4 ,purposes ,the purposes  
of the transitional jobs program under  
this title are to--  7#a7 reduce poverty
 and unemployment2  7#b7 offer          
unemployed or partially employed        
individuals the opportunity to work in a
 transitional job for the purpose of    
enabling such individuals to gain1      
through wage-paying jobs1 the experience
 and skills needed to move into regular 
employment2 and  7#c7 assist employers  
to create new regular employment4  #ajb4
 ,definitions ,in this title3  7#a7     
,employer of record ,the term employer  
of record means a local government1     
nonprofit1 or for-profit entity selected
 under section #ajc7;c77#c77;,a7 to     
carry out the responsibilities described
 in section #ajc7;d74  7#b7 ,host site  
employer ,the term host site employer   
means an employer that-- 7,a7 provides  
an individual who is eligible for a     
transitional job with the opportunity to

 work in a specific transitional job for
 which the individual is qualified1 as  
determined by such employer1 at a       
worksite that is under the direct       
supervision of such employer2 and  7,b7 
agrees to be responsible for--  7i7     
selecting1 training1 and supervising the
 transitional job worker1 including     
providing a written job description1    
initial training1 ongoing management1   
and periodic performance reviews2  7ii7 
certifying to the employer of record1 in
 the manner prescribed by the           
,secretary1 the number of hours that the
 transitional job worker has worked for 
the host site employer2 and  7iii7      
cooperating with the employer of record 
in facilitating the movement of the     
transitional job worker into regular    
employment4  7#c7 ,local area ,the term 
local area means a city1 county1 or     
other general purpose political         
subdivision of a ,state4  7#d7 ,regular 
employment ,the term regular employment 
means regular1 unsubsidized employment1 

as defined by the ,secretary4  7#e7     
,secretary ,the term ,secretary means   
the ,secretary of ,labor4  7#f7 ,state  
,the term ,state means each of the      
several ,states of the ,united ,states1 
the ,district of ,columbia1 and the     
,commonwealth of ,puerto ,rico4  7#g7   
,transitional job ,the term transitional
 job means a job offered to an eligible 
individual through the program          
authorized under section #ajc that--    
7,a7 provides the rate of pay described 
in section #ajc7;d77#f72 and  7,b7      
provides the individual with employment 
of--  7i7 not less than #af hours per   
week2 and  7ii7 not more than #dj hours 
per week1 when combined with any hours  
per week of work that the individual is 
employed through any other employer 7if 
applicable74  #ajc4 ,transitional jobs  
7a7 ,program authorized ,from amounts   
made available under section #ajd1 the  
,secretary shall establish a program1   
through grant agreements described in   
subsection 7c7 with ,state and local    

government agencies1 that provides      
eligible unemployed or partially        
employed individuals with opportunities 
to work in a transitional job for the   
purpose of enabling such individuals to 
gain1 through wage-paying jobs1 the     
experience and skills needed to move    
into regular employment4  7b7           
,eligibility ,to be eligible for a      
transitional job1 an individual shall-- 
7#a7 be a resident of the ,united       
,states1 and a resident of the ,state in
 which the individual applies for a     
transitional job2  7#b7 be not less than
 #ah years of age2  7#c7 not be         
incarcerated in any ,federal or ,state  
penal institution1 unless the individual
 is participating in a work-release     
program authorized by the ,united       
,states or a ,state and the ,united     
,states or the ,state authorizes        
employment under this circumstance in a 
transitional job2 and  7#d7 be          
unemployed1 or employed for less than   
#cj hours per week1 for not less than #d

 consecutive weeks preceding the        
individual's application for a          
transitional job4  7c7 ,transitional    
jobs program administration  7#a7 ,in   
general ,the ,secretary shall enter into
 agreements with ,state and local       
government agencies under which-- 7,a7  
the ,state and local government agencies
 carry out all activities described in  
paragraph 7#c72 and  7,b7 the ,secretary
 provides grants to the ,state and local
 government agencies to carry out such  
activities4  7#b7 ,selection criteria   
,the ,secretary shall select ,state and 
local government agencies for the       
agreements described in paragraph 7#a7  
based on--  7,a7 the agencies' level of 
experience and commitment to            
transitional jobs programs2 and  7,b7   
such other criteria as the ,secretary   
determines appropriate1 which may       
include criteria relating to the        
implementation by such agencies of      
transitional jobs program models under  
this title4  7#c7 ,activities ,the      

activities described in this paragraph  
are the following3 7,a7 ,select1 on a   
competitive basis1 and enter into a     
contract with one or more local         
government1 nonprofit1 or for-profit    
entities to--  7i7 administer the       
transitional jobs program in the ,state 
or local area to be served2 and  7ii7   
function as the employer of record      
described in subsection 7d74  7,b7 ,pay 
each entity selected to serve as an     
employer of record1 based upon the terms
 of the contract and full documentation 
of performance1 for the entity's        
performance of its contractually defined
 services in administering the          
transitional jobs program1 including    
reimbursement of the entity for         
appropriate wages and taxes the entity  
has paid1 as required under paragraphs  
7#f7 and 7#g7 of subsection 7d71 to or  
on behalf of eligible individuals who   
worked in transitional jobs in the      
entity's capacity as an employer of     
record4 ,a ,state or local governmental 

agency may require a host employer to   
pay a portion of the appropriate wages  
and taxes for the individual4  7,c7     
,cooperate with the ,comptroller        
,general of the ,united ,states1 the    
,congressional ,budget ,office1 and     
other ,federal and ,state agencies in   
the performance of audits and the       
conduct of fiscal and programmatic      
oversight4  7,d7 ,annually submit to the
 ,secretary1 and to the ,governor or    
other chief executive officer of the    
,state in which the program is located  
and the ,state legislature1 a report on 
the ,state or local government agency's 
role and accomplishments in the         
operation of the transitional jobs      
program1 in a format specified by the   
,secretary4  7,e7 ,conduct1 or enter    
into arrangements with independent      
academic or research organizations to   
conduct1 periodic evaluations of the    
effectiveness of the program within the 
,state or local area served in--  7i7   
reducing poverty and unemployment2  7ii7

 enabling unemployed and underemployed  
individuals to gain the experience and  
skills needed to move into regular      
employment2 and  7iii7 assisting        
employers in creating new regular       
employment4  7,f7 ,promulgate any rules 
necessary for the agency's operation of 
the transitional jobs program4  7#d7    
,scope of program  7,a7 ,in general ,the
 ,secretary shall1 to the greatest      
extent practicable and subject to the   
availability of appropriations1 ensure  
that the agreements described in        
paragraph 7#a7 make the transitional    
jobs program available to eligible      
individuals in all local areas of all   
,states4  7,b7 ,individuals with        
significant barriers to employment      
,notwithstanding subparagraph 7,a71 a   
,state or local government agency       
entering into an agreement under        
paragraph 7#a7 may1 in carrying out the 
activities described in paragraph 7#c71 
choose to target the assistance to      
eligible individuals under subsection   

7b7 who have significant barriers to    
employment4  7,c7 ,use of existing      
systems ,a ,state or local government   
agency entering into an agreement under 
paragraph 7#a7 may carry out the        
activities described in paragraph 7#c7  
through1 or in alignment with1 other    
subsidized employment and job training  
activities or systems available within  
the ,state or local area4  7d7          
,responsibilities of an employer of     
record ,each local government1          
nonprofit1 or for-profit entity selected
 to serve as an employer of record under
 subsection 7c77#c77;,a7 shall do each  
of the following3  7#a7 ,determine the  
eligibility of individuals applying for 
the transitional jobs program under this
 title4  7#b7 ,conduct orientation      
activities for individuals that the     
employer of record has determined are   
eligible for the transitional jobs      
program4  7#c7 ,assess the education1   
prior work experience1 and other        
relevant factors of each eligible       

individual who requests a transitional  
job1 for the purpose of assisting the   
individual to be successful in applying 
for and performing well in a specific   
transitional job4  7#d7 ,connect each   
eligible individual requesting a        
transitional job to the one-stop        
delivery system established under       
section #aba7;e7 of the ,workforce      
,innovation and ,opportunity ,act 7#bi  
,u4,s4,c4 #caea7;e771 and to other      
resources that provide assistance to job
 seekers4  7#e7 ,offer each eligible    
individual who desires to work in a     
transitional job and meets the          
eligibility requirements under          
paragraphs 7#a7 through 7#d7 of         
subsection 7b7 the opportunity to work  
for a host site employer4 ,the host site
 employer may be--  7,a7 the employer of
 record2 or  7,b7 another organization  
that has entered into an agreement with 
the employer of record1 and as part of  
such agreement1 agrees to function as1  
and meet the responsibilities of1 a host

 site employer1 for a period not to     
exceed #cj weeks1 subject to the        
requirements of subsection 7e74  7#f7   
,pay each individual described in       
paragraph 7#e71 for each hour of work   
performed for the host site employer1 an
 amount at a rate of pay that is equal  
to1 or greater than1 the greater of--   
7,a7 the minimum wage rate applicable in
 the ,state in which the applicable     
position is located2  7,b7 the wage rate
 applicable under section #f of the     
,fair ,labor ,standards ,act of #aich   
7#bi ,u4,s4,c4 #bjf72 or  7,c7 if the   
,state or local governmental agency     
determines appropriate1 the prevailing  
wage rate1 as determined by the ,state  
or local governmental agency1 for the   
type of work performed by the           
individual4  7#g7 ,with respect to the  
employment of each individual described 
in paragraph 7#e7-- 7,a7 pay any        
applicable ,federal taxes for employers1
 including the employer taxes imposed   
under sections #caaa1 #cbba1 and #ccja  

of the ,internal ,revenue ,code of      
#aihf2  7,b7 pay any other ,state or    
local government taxes that employers in
 the relevant ,state or local area are  
required to pay2  7,c7 withhold from the
 individual's earnings the taxes imposed
 under sections #caja and #cbja of the  
,internal ,revenue ,code of #aihf1 and  
any other ,federal1 ,state1 or local tax
 required to be withheld for employees2 
7,d7 complete and submit to the         
appropriate government agencies1 all    
required ,federal1 ,state1 and local    
tax-related and employment-related forms
 that an employer would typically       
submit1 including by ensuring that each 
individual provides the information     
necessary for the completion of such    
forms2  7,e7 provide the individual with
 a ,form ,w-#b ,wage and ,tax ,statement
 for the calendar year2  7,f7 provide   
for workers' compensation coverage for  
the individual under the applicable     
,federal and ,state workers'            
compensation laws2  7,g7 perform1 either

 directly or through an agreement       
described in paragraph 7#e77;,b7 with a 
host site employer1 all other functions 
that an employer would typically        
perform2  7,h7 comply with any          
applicable requirements for providing   
health insurance coverage1 including    
under the ,patient ,protection and      
,affordable ,care ,act 7,public ,law    
#aaa-adh7 and any amendments made by    
that ,act2 and  7,i7 provide any        
benefits that are otherwise required of 
employers in the relevant ,state or     
local area4  7#h7 ,ensure that no       
transitional job would result in a      
violation of any of the worker          
protections provided in subsection 7f74 
7e7 ,duration of transitional job  7#a7 
,in general ,an individual may work in a
 transitional job for a period not to   
exceed #cj weeks1 as long as--  7,a7 the
 individual continues to meet the       
eligibility requirements for a          
transitional job under paragraphs 7#a7  
through 7#c7 of subsection 7b72  7,b7   

the individual1 during the period of    
employment in the transitional job1     
pursues efforts to replace hours of work
 in the transitional job with regular   
employment2  7,c7 the individual has    
not-- 7i7 obtained regular employment   
that consistently equals or exceeds #cj 
hours of work per week2 or  7ii7 turned 
down any appropriate offer for such     
regular employment1 as determined by the
 ,secretary2 and  7,d7 if the individual
 receives and accepts an appropriate    
offer for such regular employment1 the  
individual does not postpone the        
starting date for such employment beyond
 the earliest date practicable1 as      
determined by the ,secretary1 even if   
such date occurs before the individual  
has reached the maximum transitional job
 time period of #cj weeks4  7#b7        
,additional transitional job ,a ,state  
or local government agency administering
 a transitional jobs program under this 
section shall1 subject to the           
availability of funds1 allow an         

individual who has completed the maximum
 number of weeks in a transitional job  
an opportunity to work in a different   
transitional job1 under the same terms  
and conditions established under this   
section1 if the individual--  7,a7 is   
unable1 after the end of #cj weeks of   
employment in a transitional job1 to    
find regular employment that            
consistently equals or exceeds #cj hours
 per week2  7,b7 engages in an intensive
 job search1 as defined by the          
,secretary1 for not less than #d        
consecutive weeks following the         
completion of a transitional job1 and   
remains unable to find regular          
employment2 and  7,c7 meets the         
eligibility requirements under          
paragraphs 7#a7 through 7#d7 of         
subsection 7b74  7f7 ,worker protections
  7#a7 ,prohibition against violation of
 contracts ,a transitional job shall not
 violate an existing contract for       
services or a collective bargaining     
agreement1 and a transitional job that  

would violate a collective bargaining   
agreement shall not be undertaken       
without the written concurrence of the  
labor organization and employer         
concerned4  7#b7 ,other prohibitions ,an
 individual described in subsection     
7d77#e7 shall not be assigned to a      
transitional job-- 7,a7 when any other  
individual is on layoff from the same or
 any substantially equivalent job2  7,b7
 if the employer has terminated the     
employment of any regular employee or   
otherwise caused an involuntary         
reduction in its workforce with the     
intention of filling the vacancy so     
created with the individual working in  
the transitional job2 or  7,c7 if the   
employer has caused an involuntary      
reduction to less than full time in     
hours of any employee in the same or a  
substantially equivalent job4  7g7      
,evaluations ,the ,secretary may reserve
 not more than a total of #aj percent of
 the amounts made available under       
section #ajd for--  7#a7 evaluations of 

transitional jobs program models        
implemented with grants awarded under   
this title2 and  7#b7 other evaluations 
of grants and activities carried out    
under this title4  #ajd4 ,authorization 
of appropriations ,there are authorized 
to be appropriated to carry out this    
title such sums as may be necessary4    
,,ii ,poverty reduction tax credits     
#bja4 ,reform of earned income credit   
7a7 ,in general ,section #cb of the     
,internal ,revenue ,code of #aihf is    
amended-- 7#a7 by amending subsection   
7b7 to read as follows3  7b7            
,percentages and amounts ,for purposes  
of subsection 7a73 7#a7 ,percentages    
,the credit percentage and the phaseout 
percentage shall be determined as       
follows3 ,in the case of an eligible    
individual with3,the credit percentage  
is3,the phaseout percentage is3,no      
qualifying children#bc4aebc4aea         
qualifying child#gj   #bc4heb qualifying
 children#ge   #bd4ejc or more          
qualifying children#hj   #bi4gj4  7#b7  

,amounts  7,a7 ,in general ,subject to  
subparagraph 7,b71 the earned income    
amount and the phaseout amount shall be 
determined as follows3 ,in the case of  
an eligible individual with3,the earned 
income amount is3,the phaseout amount   
is3,no qualifying children#f1fabaf1ifia 
qualifying child#h1bggae1jjjb qualifying
 children#i1fgeae1jjjc qualifying       
children#ab1bbjae1jjj4  7,b7 ,joint     
returns  7i7 ,in general ,except as     
provided in clause 7ii71 in the case of 
a joint return filed by an eligible     
individual and such individual's spouse1
 the phaseout amount determined under   
subparagraph 7,a7 shall be increased by 
#e1eej4  7ii7 ,taxpayers with no        
qualifying children ,in the case of a   
joint return filed by an eligible       
individual and such individual's spouse 
who do not have a qualifying child for  
the taxable year1 the phaseout amount in
 the third column of the first row of   
the table in subparagraph 7,a7 shall be 
increased by #h1jjj4  2  7#b7 in        

subclause 7,,ii7 of subsection          
7c77#a77;,a77ii71 by striking attained  
age #be but not attained age #fe and    
inserting attained age #ba but not      
attained age #fg2 and  7#c7 by amending 
subsection 7j7 to read as follows3  7j7 
,inflation adjustments  7#a7 ,in general
 ,in the case of any taxable year       
beginning after #bjag1 each of the      
dollar amounts in subparagraph 7,a7 of  
subsection 7b77#b7 7after being         
increased under subparagraph 7,b7       
thereof7 shall be increased by an amount
 equal to--  7,a7 such dollar amount1   
multiplied by  7,b7 the cost-of-living  
adjustment determined under section     
#a7;f77#c7 for the calendar year in     
which the taxable year begins1          
determined by substituting calendar year
 #bjaf for calendar year #aiib in       
subparagraph 7,b7 thereof4  7#b7        
,rounding ,if any dollar amount         
increased under paragraph 7#a7 is not a 
multiple of #ej1 such dollar amount     
shall be rounded to the nearest multiple

 of #ej4  4  7b7 ,effective date ,the   
amendments made by this section shall   
apply to taxable years beginning after  
,december #ca1 #bjaf4  #bjb4            
,establishment of fully refundable child
 tax credit  7a7 ,credit made refundable
  7#a7 ,in general ,the ,internal       
,revenue ,code of #aihf is amended--    
7,a7 by redesignating section #bd as    
section #cf;,c2 and  7,b7 by moving     
section #cf;,c 7as so redesignated7 from
 subpart ,a of part ,,iv of subchapter  
,a of chapter #a to the location        
immediately before section #cg in       
subpart ,c of part ,,iv of subchapter ,a
 of chapter #a4  7#b7 ,conforming       
amendments  7,a7 ,section #cf;,c of such
 ,code1 as redesignated by subsection   
7a71 is amended by striking subsection  
7d74  7,b7 ,the table of sections for   
subpart ,a of part ,,iv of subchapter ,a
 of chapter #a of subtitle ,a of such   
,code is amended by striking the item   
relating to section #bd4  7,c7 ,the     
table of sections for subpart ,c of part

 ,,iv of subchapter ,a of chapter #a of 
subtitle ,a of such ,code is amended by 
inserting after the item relating to    
section #cf;,b the following3 ,sec4     
#cf;,c4 ,child tax credit44  7,d7       
,subparagraph 7,b7 of section           
#de,r7f77#c7 of such ,code is amended to
 read as follows3  7,b7 ,special rule   
,any amounts paid pursuant to an        
agreement under section #caba7l7        
7relating to agreements entered into by 
,american employers with respect to     
foreign affiliates7 which are equivalent
 to the taxes referred to in            
subparagraph 7,a7 shall be treated as   
taxes referred to in such subparagraph4 
4  7,e7 ,section #aeb7;f77#f77;,b77ii7  
of such ,code is amended by striking    
section #bd and inserting section       
#cf;,c4  7,f7 ,paragraph 7#bf7 of       
section #eja7;c7 of such ,code is       
amended in the flush matter at the end  
by striking section #bd7;c7 and         
inserting section #cf;,c7c74  7,g7      
,section #fbaa7;b77#d77;,a7 of such     

,code is amended-- 7i7 by striking      
#bd7;d712 and  7ii7 by inserting 1      
#cf;,c after #cf;,b4  7,h7 ,section     
#fbac7;g77#b7 of such ,code is amended--
  7i7 in subparagraph 7,i71 by striking 
section #bd7;e7 and inserting section   
#cf;,c7e72  7ii7 in subparagraph 7,l71  
by striking #bd1 or #cb and inserting   
#cb1 or #cf;,c2 and  7iii7 in           
subparagraph 7,p7-- 7,i7 by striking    
#bd7;h77#b7 and inserting #cf;,c7g77#b72
  7,,ii7 by striking #bd and inserting  
#cf;,c2 and  7,,iii7 by striking 7h77#b7
 thereof and inserting 7g77#b7 thereof4 
7,i7 ,section #fdjb7m7 of such ,code is 
amended by striking #bd 7by reason of   
subsection 7d7 thereof7 or #cb and      
inserting #cb or #cf;,c4  7,j7 ,section 
#ffie7;g7 of such ,code is amended by   
striking #bd1 #be;,a7a77#a71 or #cb and 
inserting #be;,a7a77#a71 #cb1 or #cf;,c4
  7,k7 ,paragraph 7#b7 of section       
#acbd7;b7 of title #ca1 ,united ,states 
,code1 is amended by inserting 1 #cf;,c 
after #cf;,b4  7b7 ,modification of     

credit  7#a7 ,credit amount ,subsection 
7a7 of section #cf;,c of the ,internal  
,revenue ,code of #aihf1 as redesignated
 by subsection 7a77#a71 is amended to   
read as follows3  7a7 ,allowance of     
credit ,in the case of a taxpayer with  
#a or more qualifying children1 there   
shall be allowed as a credit against the
 tax imposed by this subtitle for the   
taxable year an amount equal to #de     
percent of the taxpayer's earned income 
7within the meaning of section #cb7     
which is taken into account in computing
 taxable income for the taxable year4  4
  7#b7 ,limitations ,subsection 7b7 of  
section #cf;,c of such ,code1 as so     
redesignated1 is amended to read as     
follows3  7b7 ,limitation  7#a7 ,in     
general ,the amount of the credit       
determined under subsection 7a7 for any 
taxable year shall not exceed an amount 
equal to the product of #a1jjj and the  
number of qualifying children of the    
taxpayer for the taxable year4  7#b7    
,reduction based on modified adjusted   

gross income  7,a7 ,in general ,the     
amount which would 7but for this        
paragraph7 be allowable as a credit     
under this section 7determined after the
 application of paragraph 7#a77 shall be
 reduced 7but not below zero7 by #ej for
 each #a1jjj 7or fraction thereof7 by   
which the taxpayer's modified adjusted  
gross income exceeds--  7i7 #aaj1jjj1 in
 the case of a joint return1  7ii7      
#ge1jjj1 in the case of an individual   
who is not married1 and  7iii7 #ee1jjj1 
in the case of a married individual     
filing a separate return4  7,b7 ,marital
 status2 adjusted gross income ,for     
purposes of this paragraph--  7i7       
marital status shall be determined under
 section #ggjc1 and  7ii7 the term      
modified adjusted gross income means    
adjusted gross income increased by any  
amount excluded from gross income under 
section #iaa1 #ica1 or #icc4  4  7#c7   
,adjustment for inflation ,section      
#cf;,c of such ,code1 as so             
redesignated1 is amended by inserting   

after subsection 7c7 the following new  
subsection3  7d7 ,adjustment for        
inflation  7#a7 ,in general ,in the case
 of any taxable year beginning after    
#bjag1 the #a1jjj amount in subsection  
7b77#a7 shall be increased by an amount 
equal to--  7,a7 such dollar amount1    
multiplied by  7,b7 the cost-of-living  
adjustment determined under section     
#a7;f77#c7 for the calendar year in     
which the taxable year begins determined
 by substituting calendar year #bjaf for
 calendar year #aiib in subparagraph    
7,b7 thereof4  7#b7 ,rounding ,if any   
increase determined under paragraph 7#a7
 is not a multiple of #ej1 such increase
 shall be rounded to the nearest        
multiple of #ej4  4  7c7 ,effective date
 ,the amendments made by this section   
shall apply to taxable years beginning  
after ,december #ca1 #bjaf4