Why Do Taxation Bills Originate in the House of Representatives

Article I, Section vii, Clause ane:

All Bills for raising Acquirement shall originate in the Firm of Representatives; only the Senate may propose or concord with Amendments equally on other Bills.

Insertion of this clause was another of the devices sanctioned by the Framers to preserve and enforce the separation of powers.1 Information technology applies, in the context of the permissibility of Senate amendments to a House-passed bill, to all bills for collecting acquirement—revenue decreasing equally well every bit revenue increasing—rather than but to just those bills that increase revenue.2 ; Moore v. U.S. Firm of Representatives, 733 F.second 946 (D.C. Cir. 1984) , cert. denied, 469 U.South. 1106 (1985) .

But bills to levy taxes in the strict sense of the word are comprehended past the phrase "all bills for raising revenue" ; bills for other purposes, which incidentally create revenue, are not included.3 Thus, a Senate-initiated bill that provided for a monetary "special assessment" to pay into a crime victims fund did non violate the clause, because information technology was a statute that created and raised revenue to back up a particular governmental plan and was non a law raising revenue to support Government generally.4 An act providing a national currency secured by a pledge of bonds of the United States, which, "in the furtherance of that object, and as well to run across the expenses attending the execution of the act," imposed a tax on the circulating notes of national banks was held non to be a acquirement measure out which must originate in the House of Representatives.five Neither was a bill that provided that the District of Columbia should enhance past tax and pay to designated railroad companies a specified sum for the elimination of grade crossings and the construction of a railway station.6 The substitution of a corporation tax for an inheritance revenue enhancement,7 and the addition of a section imposing an excise taxation upon the utilize of foreign-built pleasance yachts,eight have been held to be within the Senate'south constitutional power to propose amendments.

Footnotes

1

The FederalistNo. 58, at 392–95 (James Madison) (Jacob E. Cooke ed., 1961). See Us v. Munoz-Flores, 495 U.S. 385, 393–95 (1990).

2

The issue of coverage is sometimes important, every bit in the case of the Taxation Equity and Fiscal Responsibility Act of 1982, 96 Stat. 324, in which the House passed a bill that provided for a net loss in revenue and the Senate amended the neb to provide a revenue increase of more than $98 billion over three years. Attacks on the law as a violation of the origination clause failed before assertions of political question, continuing, and other doctrines. Eastward.thousand., Texas Ass'n of Concerned Taxpayers five. United States, 772 F.2d 163 (5th Cir. 1985); Moore v. U.South. House of Representatives, 733 F.2nd 946 (D.C. Cir. 1984) , cert. denied, 469 U.South. 1106 (1985) .

3

2 J. Story, Commentaries on the Constitution of the United States § 880 (1833).

4

United States five. Munoz-Flores, 495 U.S. 385 (1990).

5

Twin City Bank v. Nebeker, 167 U.S. 196 (1897).

6

Millard five. Roberts, 202 U.S. 429 (1906).

7

Flint v. Rock Tracy Co., 220 U.Due south. 107, 143 (1911).

8

Rainey v. Usa, 232 U.S. 310 (1914).

riversannothing.blogspot.com

Source: https://www.law.cornell.edu/constitution-conan/article-1/section-7/clause-1/origination-clause

Share this post