Origin Of Revenue Bills: The Constitution's Mandate

where do all revenue bills start according to the constitution

The U.S. Constitution's Origination Clause, also known as the Revenue Clause, stipulates that all bills for raising revenue must originate in the House of Representatives. This clause, found in Article I, Section 7, Clause 1 of the Constitution, ensures that elected representatives of the people have direct responsibility over tax decisions. While the Senate may propose amendments to revenue bills, they cannot originate them. This clause, part of the Great Compromise, was intended to balance the power between small and large states and ensure the power of the purse rests with the body most responsive to the people.

Characteristics Values
Name of the Clause Origination Clause, sometimes called the Revenue Clause
Where do revenue bills originate? House of Representatives
Who can propose amendments? The Senate
Who can concur with amendments? The Senate
Who can initiate bills that raise specific taxes that do not go towards the government? The Senate
Who can originate bills for raising revenue? Only the House of Representatives
Who can introduce revenue bills? Only the House of Representatives
Who can initiate matters of legislation involving taxation? Only the House of Representatives
Who can initiate matters involving the raising of taxes? Only the House of Representatives

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The Origination Clause

It is important to note that the Origination Clause specifically applies to bills that levy taxes in the strict sense. This distinction was highlighted in United States v. Norton (1875), where the Court interpreted the clause's use of the term "revenue". It is also worth mentioning that the Origination Clause does not prevent the Senate from amending a revenue-raising bill that originated in the House to replace the revenue-raising provision with another one.

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The House of Representatives

The U.S. Constitution's Origination Clause, or Revenue Clause, stipulates that all bills for raising revenue must originate in the House of Representatives. This clause, found in Article I, Section 7, Clause 1 of the Constitution, is a key component of the legislative process and is designed to ensure that matters of taxation are under the control of those directly elected by the people.

The Origination Clause was influenced by British parliamentary tradition, where money bills must have their first reading in the House of Commons. However, the American version of this clause was modified to allow the Senate to propose amendments to revenue bills. This modification was part of the Great Compromise, balancing the interests of large and small states. While the Senate can suggest changes, the Origination Clause ensures that the House of Representatives retains primary authority over tax legislation.

The House-origination requirement applies specifically to bills that levy taxes in the strict sense. This distinction is important because it excludes bills that generate revenue incidentally or for specific purposes. For example, a Senate-initiated bill that imposed a "special assessment" to fund a crime victims program was deemed not to violate the Origination Clause because it raised revenue for a particular governmental program rather than general governmental functions.

In practice, the House of Representatives has played a dynamic role in the origination of revenue bills. While it holds the prerogative to initiate such bills, the Senate has occasionally challenged this role. The Supreme Court has expressed a willingness to address disputes related to the Origination Clause, reaffirming the importance of the House's role in tax legislation.

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The Senate's role

The U.S. Constitution's Origination Clause, also known as the Revenue Clause, stipulates that all bills for raising revenue must originate in the House of Representatives. This clause, found in Article I, Section 7, Clause 1 of the Constitution, was designed to ensure that individuals elected directly by the people have the initial responsibility for making tax decisions.

The Senate's ability to amend revenue bills was added to the Origination Clause in 1787 to reduce the House's power. This amendment allows the Senate to remove a revenue-raising provision from a House bill and substitute it with another. For instance, in Flint v. Stone Tracy Co., the Senate replaced an inheritance tax with a corporate tax.

However, the Senate's power to amend is limited to bills that raise revenue for specific purposes, such as particular governmental programs, rather than for the general functions of the government. Bills that raise revenue to support the general functions of the government must originate in the House. For example, a Senate-initiated bill that imposed a "special assessment" to fund a crime victims program was deemed not to violate the Origination Clause because it raised money for a specific purpose.

The Origination Clause is part of the legislative process that Congress and the President must follow to enact a law. Once a bill has passed both the House and the Senate, it must be presented to the President for approval. If the President disapproves, the bill returns to the House, where it can be amended and passed with a two-thirds majority before moving to the Senate for approval.

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Judicial rulings

The Origination Clause, also known as the Revenue Clause, is Article I, Section 7, Clause 1 of the U.S. Constitution. It states that all revenue bills must originate in the House of Representatives. The Clause is a prerogative of the House, meaning it alone is allowed to originate such bills.

The House-origination requirement applies only to bills that levy taxes in the strict sense. A statute that raises revenue to support the general functions of the government falls under this category. The Origination Clause does not prevent the Senate from amending a revenue bill that originated in the House, including substituting a different revenue-raising provision. For example, in Flint v. Stone Tracy Co., a bill originated in the House containing an inheritance tax, but the Senate amended the bill to substitute a corporate tax for the inheritance tax. The Court found no constitutional impediment to this process, as the bill had properly originated in the House and the Senate amendment was germane to the bill's subject matter.

However, the Senate may not originate bills for raising revenue. In United States v. Munoz-Flores, the Supreme Court rejected the contention that improperly originated bills for raising revenue may nonetheless become law if passed according to other legislative process requirements. The Court also rejected the argument that an Origination Clause claim poses a nonjusticiable political question to be decided solely by the House when it decides whether to pass legislation.

Subsequent judicial rulings have fine-tuned the jurisdiction of matters of revenue. Courts have ruled with more specific language that the Senate may originate legislation on matters that may raise revenue but not generally for the government or through excise taxes, such as inheritance tax or taxes on foreign-built yachts.

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Historical background

The U.S. Constitution, written in 1787 and adopted in 1789, includes the Origination Clause, also known as the Revenue Clause. This clause, which is Article I, Section 7, Clause 1 of the Constitution, states that all bills for raising revenue must originate in the U.S. House of Representatives. The Origination Clause was modelled after a British parliamentary practice that required all money bills to have their first reading in the House of Commons.

The Clause was part of the Great Compromise between small and large states. The large states were unhappy with the disproportionate power of small states in the Senate, so the Origination Clause was intended to offset this by giving the House of Representatives, a body more representative of the people, control over the "power of the purse." The Clause was modified in 1787 to reduce the House's power by allowing the Senate to amend revenue bills and removing appropriation bills from its scope.

The House-origination requirement applies only to bills that levy taxes "in the strict sense." A statute that raises revenue to support the general functions of the government falls under this category. If a bill with a revenue-raising provision originates in the House, the Origination Clause does not prevent the Senate from removing that provision and substituting another in its place. The typical Origination Clause challenge involves a federal law that requires a person to pay a particular sum, and the challenger alleges that the bill was one for raising revenue and that Senate action gave it its revenue-raising character.

The U.S. Supreme Court has decided several cases involving the Origination Clause, with all challenges to federal statutes failing. In 1911, the Court found no constitutional impediment to a bill that originated in the House with an inheritance tax provision, which the Senate then amended to include a corporate tax instead. In 1990, the Court rejected the contention that improperly originated bills for raising revenue could become law if passed according to other legislative process requirements of Article I, Section 7. In 2012, the joint dissent in the U.S. Supreme Court case National Federation of Independent Business v. Sebelius mentioned that "the Constitution requires tax increases to originate in the House of Representatives" per the Origination Clause.

Frequently asked questions

All revenue bills must start in the House of Representatives, according to the Origination Clause, Article I, Section 7, Clause 1 of the US Constitution.

The Origination Clause, sometimes called the Revenue Clause, is a rule that prescribes that revenue bills must be introduced by the House of Representatives. The Clause also states that the Senate may propose or concur with amendments to revenue bills.

Revenue bills are bills that concern raising revenue through taxes. They usually come in the form of spending bills that address budget shortfalls or emergencies, but they can also be tax amendments that raise or increase taxes. Only bills that levy taxes in the strict sense of the word are considered revenue bills.

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