|This article is part of a series on the|
| Constitution of the|
United States of America
| Preamble and Articles|
of the Constitution
|Amendments to the Constitution|
|Full text of the Constitution and Amendments|
The Origination Clause, sometimes called the Revenue Clause, is Article I, Section 7, Clause 1 of the United States Constitution. This clause says that all bills for raising revenue must start in the House of Representatives, but the Senate may propose or concur with amendments as in the case of other bills.
The Origination Clause stemmed from a British parliamentary practice that all money bills must have their first reading (and any other initial readings) in the House of Commons before being sent to the House of Lords. This practice was intended to ensure that the power of the purse is possessed by the legislative body most responsive to the people, although the British practice was modified in America by allowing the Senate to amend these bills.
This clause was part of the Great Compromise between small and large states. The large states were unhappy with the lopsided power of small states in the Senate, and so the Origination Clause theoretically offsets the unrepresentative nature of the Senate, compensating the large states for allowing equal voting rights to Senators from small states.
The Origination Clause, also known as the Revenue Clause,reads as follows:
All Bills for raising Revenue shall originate in the House of Representatives; but the Senate may propose or concur with Amendments as on other Bills.
The federal Constitution was written in 1787 and adopted in 1789. Prior to 1787, several state constitutions followed British practice by providing that "money bills" must start in the more representative branch of the state legislature.
Vesting the power of origination in the U.S. House of Representatives was part of the Great Compromise, in which the framers also agreed to allow equality in the Senate regardless of a state's population, while creating representation based on a State's population in the House.The framers adopted the Great Compromise on July 16, 1787. At that point, the draft clause stated: "all bills for raising or appropriating money. ... shall originate in the [representative house], and shall not be altered or amended by the [other house]. ... "
The Origination Clause was modified later in 1787 to reduce the House's power by allowing the Senate to amend revenue bills,and by removing appropriation bills from the scope of the clause (the House and Senate have disagreed on the latter point). However, a proposal was defeated that would have reduced the House's power even more by changing "bills for raising revenue" to "bills for raising money for the purpose of revenue". James Madison explained:
In many acts, particularly in the regulations of trade, the object would be twofold. The raising of revenue would be one of them. How could it be determined which was the primary or predominant one; or whether it was necessary that revenue shd: be the sole object, in exclusion even of other incidental effects.
Regarding the decision to allow Senate amendments, some of the reasoning was given by Theophilus Parsons during the convention in Massachusetts that ratified the Constitution; Parsons said that, otherwise, "representatives might tack any foreign matter to a money-bill, and compel the Senate to concur or lose the supplies."Madison believed that the difference between a permissible Senate amendment and an impermissible Senate amendment would, "turn on the degree of connection between the matter & object of the bill and the alteration or amendment offered to it."
During that era, the Continental Congress had a rule stating: "No new motion or proposition shall be admitted under color of amendment as a substitute for a question or proposition under debate until it is postponed or disagreed to."At the Virginia convention to ratify the Constitution, delegate William Grayson was concerned that a substitute amendment could have the same effect as an origination: "the Senate could strike out every word of the bill except the word whereas, or any other introductory word, and might substitute new words of their own." Grayson was not convinced by Madison's argument that "the first part of the clause is sufficiently expressed to exclude all doubts" about where the origination must occur.
In its final form, the Origination Clause was a major selling point for ratification of the Constitution. James Madison, who supported the final version during and after the 1787 Convention,wrote the following in Federalist 58 as the debate over ratification was raging:
The house of representatives can not only refuse, but they alone can propose the supplies requisite for the support of government. They in a word hold the purse; that powerful instrument by which we behold, in the history of the British constitution, an infant and humble representation of the people, gradually enlarging the sphere of its activity and importance, and finally reducing, as far as it seems to have wished, all the overgrown prerogatives of the other branches of the government. This power over the purse, may in fact be regarded as the most compleat and effectual weapon with which any constitution can arm the immediate representatives of the people, for obtaining a redress of every grievance, and for carrying into effect every just and salutary measure.
This clause resonated with a citizenry opposed to taxation without representation.
|This article is part of a series on the|
| United States House|
| History of the United States|
House of Representatives
|Politics and procedure|
Many scholars have written about the Origination Clause. Among the most widely influential was Joseph Story, who wrote in 1833 that the clause refers only to bills that levy taxes:
[The clause] has been confined to bills to levy taxes in the strict sense of the words, and has not been understood to extend to bills for other purposes, which may incidentally create revenue. No one supposes, that a bill to sell any of the public lands, or to sell public stock, is a bill to raise revenue, in the sense of the constitution. Much less would a bill be so deemed, which merely regulated the value of foreign or domestic coins, or authorized a discharge of insolvent debtors upon assignments of their estates to the United States, giving a priority of payment to the United States in cases of insolvency, although all of them might incidentally bring, revenue into the treasury.
The U.S. Supreme Court has decided several cases involving this clause, and all of those challenges to federal statutes failed.For example, in the 1911 case of Flint v. Stone Tracy Company , the Court held: "The amendment was germane to the subject-matter of the bill and not beyond the power of the Senate to propose." But, the plaintiffs in one lower court decision succeeded in striking down a federal statute on Origination Clause grounds. The Supreme Court stated in the 1990 case of United States v. Munoz-Flores :
Both parties agree that "revenue bills are those that levy taxes in the strict sense of the word, and are not bills for other purposes which may incidentally create revenue." Twin City Bank v. Nebeker, 167 U. S. 196, 202 (1897) (citing 1 J. Story, Commentaries on the Constitution § 880, pp. 610–611 (3d ed. 1858)). The Court has interpreted this general rule to mean that a statute that creates a particular governmental program and that raises revenue to support that program, as opposed to a statute that raises revenue to support Government generally, is not a "Bil[l] for raising Revenue" within the meaning of the Origination Clause.
What this means exactly is disputed. According to one scholar, a statute is outside the scope of the Origination Clause if it, "imposes an exaction not to raise revenue, but to enforce a statute passed under the Commerce Clause or other enumerated power."However, according to another scholar, even exactions imposed only under the taxing powers of Congress are outside the scope of the Origination Clause if Congress "earmarks revenues to fund a program it creates." Regarding the latter view, Justice John Paul Stevens suggested in 1990 that its tendency was to "convert the Origination Clause into a formal accounting requirement. ... "
A bill that lowers taxes instead of raises taxes may still be a bill for raising revenue, according to the United States Court of Appeals for the Ninth Circuit.Assuming that a bill is for raising revenue, a further ambiguity in the clause involves how far the Senate's right to amend extends. According to law professor Jack Balkin, the Senate may take a House-originated revenue bill, and "substitute a different bill on a different subject." On the other hand, law professor Randy Barnett says: "The Supreme Court has never approved the 'strike-and-replace' procedure. ... "
Not only the House of Representatives, but also the Senate and the judiciary have sometimes tried to guard the role of the House with regard to origination of revenue bills. For example, as early as 1789, the Senate deemed itself helpless to pass a law levying a tax.And, as mentioned, a federal court in 1915 struck down legislation contrary to the clause. The U.S. Supreme Court has expressed willingness to address such issues, according to its 1990 opinion by Justice Thurgood Marshall in Munoz-Flores:
A law passed in violation of the Origination Clause would thus be no more immune from judicial scrutiny because it was passed by both Houses and signed by the President than would be a law passed in violation of the First Amendment.
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,though that issue was not addressed by the majority opinion. In 2014, Sissel v. U.S. Department of Health and Human Services , a challenge to the Affordable Care Act brought by the Pacific Legal Foundation based upon this clause, was rejected by a panel of the United States Court of Appeals for the District of Columbia, and that court later declined a request to put the matter before all of its judges ("en banc") over a lengthy dissent authored by Judge Brett Kavanaugh.
In 2013, during the United States federal government shutdown of 2013 and the United States debt-ceiling crisis of 2013, the Republican-led House of Representatives could not agree on or pass an originating resolution to end the government crisis, as had been agreed, so the Democratic-led Senate used bill H.R. 2775 to resolve the impasse by using the Continuing Appropriations Act, 2014, an insignificant bill that originated in the House, which it amended all the tax and appropriation measures so to satisfy the formal requirements of the Originating Clause.
The Constitution of the United States is the supreme law of the United States of America. The Constitution, originally comprising seven articles, delineates the national frame of government. Its first three articles embody the doctrine of the separation of powers, whereby the federal government is divided into three branches: the legislative, consisting of the bicameral Congress ; the executive, consisting of the president ; and the judicial, consisting of the Supreme Court and other federal courts. Articles Four, Five and Six embody concepts of federalism, describing the rights and responsibilities of state governments, the states in relationship to the federal government, and the shared process of constitutional amendment. Article Seven establishes the procedure subsequently used by the thirteen States to ratify it. It is regarded as the oldest written and codified national constitution in force.
Article One of the United States Constitution establishes the legislative branch of the federal government, the United States Congress. Under Article One, Congress is a bicameral legislature consisting of the House of Representatives and the Senate. Article One grants Congress various enumerated powers and the ability to pass laws "necessary and proper" to carry out those powers. Article One also establishes the procedures for passing a bill and places various limits on the powers of Congress and the states.
The Seventh Amendment to the United States Constitution is part of the Bill of Rights. This amendment codifies the right to a jury trial in certain civil cases and inhibits courts from overturning a jury's findings of fact.
The Sixteenth Amendment to the United States Constitution allows Congress to levy an income tax without apportioning it among the states on the basis of population. It was passed by Congress in 1909 in response to the 1895 Supreme Court case of Pollock v. Farmers' Loan & Trust Co. The Sixteenth Amendment was ratified by the requisite number of states on February 3, 1913, and effectively overruled the Supreme Court's ruling in Pollock.
Pollock v. Farmers' Loan & Trust Company, 157 U.S. 429 (1895), affirmed on rehearing, 158 U.S. 601 (1895), was a landmark case of the Supreme Court of the United States. In a 5-to-4 decision, the Supreme Court struck down the income tax imposed by the Wilson–Gorman Tariff Act for being an unapportioned direct tax. The decision was superseded in 1913 by the Sixteenth Amendment to the United States Constitution, which allows Congress to levy income taxes without apportioning them among the states.
Brushaber v. Union Pacific Railroad Co., 240 U.S. 1 (1916), was a landmark United States Supreme Court case in which the Court upheld the validity of a tax statute called the Revenue Act of 1913, also known as the Tariff Act, Ch. 16, 38 Stat. 166, enacted pursuant to Article I, section 8, clause 1 of, and the Sixteenth Amendment to, the United States Constitution, allowing a federal income tax. The Sixteenth Amendment had been ratified earlier in 1913. The Revenue Act of 1913 imposed income taxes that were not apportioned among the states according to each state's population.
The federal government of the United States is the national government of the United States, a federal republic in North America, composed of 50 states, a federal district, five major self-governing territories and several island possessions. The federal government is composed of three distinct branches: legislative, executive and judicial, whose powers are vested by the U.S. Constitution in the Congress, the president and the federal courts, respectively. The powers and duties of these branches are further defined by acts of Congress, including the creation of executive departments and courts inferior to the Supreme Court.
An appropriation bill, also known as supply bill or spending bill, is a proposed law that authorizes the expenditure of government funds. It is a bill that sets money aside for specific spending. In most democracies, approval of the legislature is necessary for the government to spend money.
In United States law, the Establishment Clause of the First Amendment to the United States Constitution, together with that Amendment's Free Exercise Clause, form the constitutional right of freedom of religion. The relevant constitutional text is: "Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof...".
In the Westminster system, a money bill or supply bill is a bill that solely concerns taxation or government spending, as opposed to changes in public law.
The Constitution of the State of Arkansas is the governing document of the U.S. state of Arkansas. It was adopted in 1874, shortly after the Brooks-Baxter War. It replaced the 1868 constitution adopted by the legislature following the end of the American Civil War and under which Arkansas rejoined the Union.
The enumerated powers of the United States Congress are listed in Article I, Section 8 of the United States Constitution. In summary, Congress may exercise the powers that the Constitution grants it, subject to the individual rights listed in the Bill of Rights. Moreover, the Constitution expresses various other limitations on Congress, such as the one expressed by the Tenth Amendment: "The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people." Historically, Congress and the Supreme Court have broadly interpreted the enumerated powers, especially by deriving many implied powers from them. The enumerated powers listed in Article One include both exclusive federal powers, as well as concurrent powers that are shared with the states, and all of those powers are to be contrasted with reserved powers that only the states possess.
The House Calendar is a calendar in the United States House of Representatives that schedules major bills which do not involve raising revenue or public expenditure of funds. The calendar can also be defined as a list of all bills reported from committee and eligible for floor action, except bills pertaining to taxation and spending.
The Taxing and Spending Clause, Article I, Section 8, Clause 1 of the United States Constitution, grants the federal government of the United States its power of taxation. While authorizing Congress to levy taxes, this clause permits the levying of taxes for two purposes only: to pay the debts of the United States, and to provide for the common defense and general welfare of the United States. Taken together, these purposes have traditionally been held to imply and to constitute the federal government's taxing and spending power.
Flint v. Stone Tracy Co., 220 U.S. 107 (1911), was a United States Supreme Court case in which a taxpayer challenged the validity of a federal income tax on corporations. The privilege of incorporation is a state function, and the challengers argued that only the states should tax corporations. The Court ruled that the privilege of operating in corporate form is valuable and justifies imposition of a federal income tax:
The United States Senate is the upper chamber of the United States Congress, which, along with the United States House of Representatives—the lower chamber—constitutes the legislature of the United States. The Senate chamber is located in the north wing of the Capitol Building in Washington, D.C.
Powers of the United States Congress are implemented by the United States Constitution, defined by rulings of the Supreme Court, and by its own efforts and by other factors such as history and custom. It is the chief legislative body of the United States. Some powers are explicitly defined by the Constitution and are called enumerated powers; others have been assumed to exist and are called implied powers.
United States constitutional law is the body of law governing the interpretation and implementation of the United States Constitution.
The Supremacy Clause of the Constitution of the United States, establishes that the Constitution, federal laws made pursuant to it, and treaties made under its authority, constitute the "supreme Law of the Land", and thus take priority over any conflicting state laws. It provides that state courts are bound by, and state constitutions subordinate to, the supreme law. However, federal statutes and treaties are supreme only if they do not contravene the Constitution.
United States v. Munoz-Flores, 495 U.S. 385 (1990), was a United States Supreme Court case that interpreted the Origination Clause of the United States Constitution. The Court was asked to rule on whether a statute that imposed mandatory monetary penalties on persons convicted of federal misdemeanors was enacted in violation of that clause, as the lower court had held.