Cecily Zamora
The process of formal tax legislation in the United States is a complex one, with the journey of a tax bill from proposal to law requiring the consent of both houses of Congress – the Senate and the House of Representatives – as well as presidential approval. While the idea for a bill can come from a sitting member of either house, it is the House of Representatives that can initiate tax and revenue-related legislation, with all tax bills originating in the House Committee on Ways and Means. This is because the House is supposed to represent individual citizens, rather than whole states, as with the Senate. Once a bill has been introduced, it is assigned to a committee, before being put before that chamber to be voted on. If the bill passes one body of Congress, it goes through a similar process in the other body, before both houses work out any differences between the two versions.
| Characteristics | Values |
|---|---|
| Which house can start tax laws | House of Representatives |
| Which committee does the bill go to first | House Committee on Ways and Means |
| Which committee does the bill go to next | Senate Finance Committee |
| Which house can draft legislation related to treaties | Senate |
| Which house can initiate tax and revenue-related legislation | House of Representatives |
| Which house can propose the supplies requisite for the support of the government | House of Representatives |
| Which house can refuse to propose the supplies requisite for the support of the government | House of Representatives |
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What You'll Learn
The House of Representatives must propose tax laws
The Origination Clause, part of the procedures that Congress and the President must follow to enact a law, directs that all Bills for raising Revenue shall originate in the House of Representatives. This clause ensures that persons elected directly by the people have initial responsibility over tax decisions. The House alone can propose the supplies requisite for the support of the government, and it holds the "power over the purse."
Once a tax bill is introduced in the House, it is referred to the Ways and Means Committee. After the committee reaches an agreement, the proposed tax law is written. The bill then goes to the Senate Finance Committee, which operates similarly to the House Committee on Ways and Means. The Senate Finance Committee focuses on the tax bill passed by the House, holding its own hearings before sending the marked-up bill to the full Senate for debate and a vote.
After the bill passes in the Senate, it goes back to the House, and both bodies work out any differences between the two versions. Once Congress passes the bill, it is sent to the President for approval. If the President vetoes the bill, it is returned to the House with a statement of what was objectionable. The House can then attempt to override the veto or make the requested changes.
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![The Truth about the Single Tax, Its Origin, Purpose and Effect / by George Falloon 1915 [Leather Bound]](https://m.media-amazon.com/images/I/617DLHXyzlL._AC_UY218_.jpg)
The Ways and Means Committee
The Committee on Ways and Means, also known as the House Ways and Means Committee, is the chief tax-writing committee of the United States House of Representatives. It is the oldest tax-writing body in the House of Representatives, having been established in 1789. The committee has jurisdiction over all taxation, tariffs, and other revenue-raising measures, as well as a number of other programs including Social Security, unemployment benefits, Medicare, the enforcement of child support laws, Temporary Assistance for Needy Families, foster care, and adoption programs.
The committee is chaired by Jason T. Smith, with recent chairmen including Bill Thomas, Charlie Rangel, Sander Levin, Dave Camp, Paul Ryan, Kevin Brady, and Richard Neal. Three future presidents—James Polk, Millard Fillmore, and William McKinley—also served as Committee Chairmen. The chairman is one of the few Representatives to have office space within the Capitol building.
After Senate approval, the tax bill is sent to a joint committee of House and Senate members, who work to create a compromise version. This compromise version is then sent back to the House and Senate for approval. Once Congress passes the bill, it is sent to the President for approval, who may sign it into law or veto the bill. If the President vetoes the bill, it is returned to the House with a statement of objections, and the House must attempt to override the veto or make the requested changes.
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The Senate Finance Committee
In the United States, the process of formal tax legislation requires the consent of both houses of Congress—the Senate and the House of Representatives—as well as presidential approval. While all federal tax laws must originate in the House of Representatives, the Senate also plays a crucial role in this process, particularly through the Senate Finance Committee.
During the Senate debate, senators may introduce additional amendments to the bill. However, the bill can also face resistance through a filibuster, where senators extend the debate indefinitely to prevent a vote. If the bill surpasses this hurdle, it moves forward in the legislative process.
Following Senate approval, the tax bill is sent to a joint committee of House and Senate members who work together to create a compromise version. This compromise version is then sent back to both the House and the Senate for approval. Once it passes through both chambers, the bill is sent to the president for signature or veto. If the president vetoes the bill, it is returned to the House, along with a statement outlining the objections. The House then has two options: they can attempt to override the veto with a two-thirds vote in both the House and the Senate, or they can make the requested changes to address the president's concerns.
In summary, while tax laws must originate in the House of Representatives, the Senate Finance Committee plays a pivotal role in reviewing, amending, and advancing the tax bill within the Senate. The committee's work helps shape the final version of the legislation and ensures that it aligns with the Senate's priorities and perspectives.
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Presidential approval is required
In the United States, the process of formal tax legislation requires the consent of both houses of Congress – the Senate and the House of Representatives – as well as presidential approval. The proposed tax laws start as a bill, which must be introduced in the House of Representatives, as this branch of Congress represents individual citizens. The bill is then referred to the Ways and Means Committee, which is responsible for drafting the proposed legislation. Once the committee members agree on the legislation, the proposed tax law is written.
The tax bill then moves to the Senate Finance Committee, which operates similarly to the House Committee on Ways and Means. The finance committee focuses on the tax bill passed by the House, holding its own hearings before sending the marked-up bill to the full Senate for debate and a vote. Senators may further amend the bill before voting on it, and they can also use a filibuster to prevent a measure from being brought to a vote by extending the debate.
After the bill passes in the Senate, it goes back to the House, where it may be altered to include the Senate's amendments. Once both houses of Congress agree on a version of the bill, it is sent to the President. The President will then either sign the bill into law or veto it. If the President chooses to veto the bill, it is returned to the House along with a statement outlining the reasons for their objection. The House can then attempt to override the veto with a two-thirds vote in both the House and the Senate, or they can make the requested changes to the bill.
If the veto is overridden by a two-thirds vote in both houses of Congress, the tax bill becomes law without the President's signature. On the other hand, if the House chooses to make the requested changes, the amended bill is sent back to the President. If the President still does not approve of the bill, it may be vetoed a second time. In this case, Congress can override the veto by a two-thirds vote, or the bill can become law without the President's signature if Congress is no longer in session when the veto occurs. This is known as a pocket veto.
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Citizens can influence tax laws
In the United States, citizens can influence tax laws through the informal tax legislation process. This includes various methods of engaging with elected officials and the political process. Citizens can contact members of Congress, attend town or county meetings, participate in lobbying efforts, circulate and sign petitions, and vote for particular candidates. By making their views known to legislators, citizens can collectively influence the outcome of the formal tax legislation process.
The formal tax legislation process in the United States requires the consent of both houses of Congress—the Senate and the House of Representatives—and presidential approval. The House of Representatives is meant to represent individual citizens, while the Senate represents whole states. All tax legislation begins in the House Committee on Ways and Means, where a tax bill is introduced and discussed. Once an agreement is reached within the committee, the proposed tax law is written.
The tax bill then moves to the Senate Finance Committee, which operates similarly to the House Committee but focuses on the House's version of the bill. After holding hearings and making any desired amendments, the Senate Finance Committee sends the bill to the full Senate for debate and a vote. If the bill passes in the Senate, it is sent back to the House, where it may be approved or further amended.
If the bill is approved by both houses of Congress, it is sent to the president for signature or veto. The president may sign the bill into law or veto it and return it to the House with a statement of objections. If the president vetoes the bill, Congress can make the requested changes or override the veto with a two-thirds vote in both the House and the Senate.
While citizens may have more direct influence over their representatives in the House of Representatives, there are still opportunities to engage with senators and shape tax legislation before it becomes law. Citizens can contact senators, share their views, and encourage them to support or oppose specific tax provisions. Additionally, through lobbying efforts and petitions, citizens can collectively bring attention to particular tax issues and influence the Senate's deliberations.
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