Tax Reconciliation: Scope of the Senate's Power Under the Constitution's Origination Clause to Amend Revenue Legislation

Publication Date: December 2005

Publisher: Library of Congress. Congressional Research Service

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Research Area: Banking and finance

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Abstract:

The Origination Clause of the Constitution, Article I, Section 7, clause 1, states that, "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." This report discusses opinions of the Supreme Court and some lower federal courts that have interpreted the text of the Clause and delineated the scope of the Senate's power to amend revenue legislation. It does not address parliamentary precedents of the House and Senate, which generally have interpreted the Clause more restrictively than the courts.

These cases have limited the phrase "bills for raising revenue" to those that levy taxes for the support of the government generally and not to those that raise revenue for specific programs. They have held that the Senate may attach amendments to raise revenue only to House bills that raise it under this limited interpretation and not to House bills that do not raise revenue. Lower courts have concluded that the Senate may amend a House bill to reduce revenue with Senate text that increases revenue.

This report will not be updated.