Megan Suzanne Lynch
Analyst on Congress and the Legislative Process
The term “revenue” is defined as funds collected from the public that arise from the government’s exercise of its sovereign or governmental powers. Federal revenues come from a variety of sources, including individual and corporate income taxes, excise taxes, customs duties, estate and gift taxes, fees and fines, payroll taxes for social insurance programs, and miscellaneous receipts (such as earnings of the Federal Reserve System, donations, and bequests). The executive branch often uses the term “receipts” or “governmental receipts” in place of the term revenues.
The collection of revenue is a fundamental component of the federal budget process that provides the government with the money necessary to fund agencies and programs. Further, the collection of revenue directly effects individual citizens and businesses, and in some cases can achieve specific policy outcomes. The Constitution grants Congress this considerable power to “lay and collect taxes, duties, imposts, and excises.”
Most revenue is collected by the federal government as a result of previously enacted law that continues in effect without any need for congressional action. However, Congress routinely considers revenue legislation that repeals existing provisions, extends expiring provisions, or creates new provisions. Congress may consider such legislation either in a measure dedicated solely to revenues, or as a provision in another type of measure.
As with all legislation considered by Congress, revenue measures are subject to general House and Senate rules. In addition, revenue measures are subject to further House and Senate rules, as well as constitutional and statutory requirements (e.g., the Origination Clause, the Congressional Budget Act of 1974). The purposes of such revenue-specific rules are generally to centralize and coordinate the development and consideration of revenue legislation, to provide Members of Congress with the information necessary to judge the merits of revenue legislation, and to control the budgetary impact of revenue measures.
This report provides an overview and analysis of the most consequential revenue-specific rules that apply during the process of developing and considering revenue legislation. It highlights certain rules and precedents that apply specifically to revenue measures and distinguishes them into four categories: (1) rules that apply to the origination and referral of revenue measures; (2) rules that require supplemental materials or information to be included with revenue measures; (3) rules that apply to the budgetary impact of revenue measures; and (4) rules related to the consideration of revenue measures under the budget reconciliation process, which carries with it additional unique procedures.
Date of Report: September 14, 2010
Number of Pages: 24
Order Number: R41408
Price: $29.95
Follow us on TWITTER at http://www.twitter.com/alertsPHP or #CRSreports
Document available via e-mail as a pdf file or in paper form.
To order, e-mail Penny Hill Press or call us at 301-253-0881. Provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery. Phone orders are preferred and receive priority processing.
Analyst on Congress and the Legislative Process
The term “revenue” is defined as funds collected from the public that arise from the government’s exercise of its sovereign or governmental powers. Federal revenues come from a variety of sources, including individual and corporate income taxes, excise taxes, customs duties, estate and gift taxes, fees and fines, payroll taxes for social insurance programs, and miscellaneous receipts (such as earnings of the Federal Reserve System, donations, and bequests). The executive branch often uses the term “receipts” or “governmental receipts” in place of the term revenues.
The collection of revenue is a fundamental component of the federal budget process that provides the government with the money necessary to fund agencies and programs. Further, the collection of revenue directly effects individual citizens and businesses, and in some cases can achieve specific policy outcomes. The Constitution grants Congress this considerable power to “lay and collect taxes, duties, imposts, and excises.”
Most revenue is collected by the federal government as a result of previously enacted law that continues in effect without any need for congressional action. However, Congress routinely considers revenue legislation that repeals existing provisions, extends expiring provisions, or creates new provisions. Congress may consider such legislation either in a measure dedicated solely to revenues, or as a provision in another type of measure.
As with all legislation considered by Congress, revenue measures are subject to general House and Senate rules. In addition, revenue measures are subject to further House and Senate rules, as well as constitutional and statutory requirements (e.g., the Origination Clause, the Congressional Budget Act of 1974). The purposes of such revenue-specific rules are generally to centralize and coordinate the development and consideration of revenue legislation, to provide Members of Congress with the information necessary to judge the merits of revenue legislation, and to control the budgetary impact of revenue measures.
This report provides an overview and analysis of the most consequential revenue-specific rules that apply during the process of developing and considering revenue legislation. It highlights certain rules and precedents that apply specifically to revenue measures and distinguishes them into four categories: (1) rules that apply to the origination and referral of revenue measures; (2) rules that require supplemental materials or information to be included with revenue measures; (3) rules that apply to the budgetary impact of revenue measures; and (4) rules related to the consideration of revenue measures under the budget reconciliation process, which carries with it additional unique procedures.
Date of Report: September 14, 2010
Number of Pages: 24
Order Number: R41408
Price: $29.95
Follow us on TWITTER at http://www.twitter.com/alertsPHP or #CRSreports
Document available via e-mail as a pdf file or in paper form.
To order, e-mail Penny Hill Press or call us at 301-253-0881. Provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery. Phone orders are preferred and receive priority processing.
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