The creating and passing of a revenue or tax bill in the US requires both the Legislative Branch (House of Representatives and Senate) with approval by the President (Executive Branch). The US Constitution requires that all revenue or tax bills be drafted and written by the House of Representatives. The creation of revenue or tax bill is done to provide revenue for the US Treasury. The inspiration for creating additional tax revenue can come from many different sources and reasons, but are generally driven by special interest groups, Congress or the President to fund new federal or expand existing programs.
The creating of the revenue or tax bill is generally done by a group of members of the House of Representatives, who are known as sponsors of the legislation. The bill will be placed in the hopper system of the legislative branch and Speaker of the House has the responsibility to either assign the pending legislative to the Ways and Mean Committee or the Speaker can not assign the bill to a committee and it will be allowed to die or not get any consideration.
The committee has five options on the bill that are:
1. Do Pass- They pass the bill and goes to the rules committee
2. Pigeon Hole- Kill the bill
3. Mark it up-Change the bill
4. Unfavorable recommendation
5. Committee Bill- Reworked to unrecognized it.
6. Hold Hearings
The Chairperson of the Ways and Means Committee can either consider the pending legislative at the full committee or assign it to a subcommittee. If it is assigned to full committee or a subcommittee each can decide to have hearings to get input and develop a public level of understanding. If the bill is passed at the full committee level it will then be referred to the full House of Representatives for passage or failure. If it is passed it will be sent to the Senate for committee assignment and hearing either at the full committee level or subcommittee. A full committee vote is needed with passage for a full review by...