article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Poverty Trap Study Act of 2001''. 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.
summary: Poverty Trap Study Act of 2001 - Establishes the National Commission on Marginal Tax Rates for the Working Poor to: (1) determine the total effective marginal rate of tax from all taxes and benefit program phaseouts that persons are subject to at all earnings levels between $7,000 and $30,000 per year for at least five States, including Wisconsin and California; and (2) report to Congress. Authorizes appropriations. Terminates the Commission 30 days after the submission of its report.