The House Ways and Means Committee: Where Tax Plans Are Born

When Congress returns from their spring recess on April 24 they’ll be diving into tax reform. According to the Constitution, all tax legislation must originate in the House of Representatives, and it gets formulated and fleshed out in the Committee on Ways and Means (often shortened to Ways and Means).

What is the Ways and Means Committee?

The Ways and Means Committee is responsible for legislation pertaining to revenue generation for the federal government. It deals with everything from taxes and bonds, to trade and tariffs. It also has jurisdiction over most individual federal benefits programs- Social Security, Medicare, unemployment, and Temporary Assistance for Needy Families (more commonly known as welfare). Finally, the enforcement of child support laws and all foster and adoption programs fall under the committee’s umbrella.

The committee maintains standing subcommittees on Health, Human Resources, Oversight, Tax Policy, Social Security, and Trade. The committee’s broad jurisdiction allows its members to have a significant impact on policy with real-world implications for everyday Americans.

The Green Book, a compilation of materials and data on each of the programs within the jurisdiction of the committee, is updated annually. The Green Book:

"... has become a valuable resource and standard reference on American social policy. It is widely used by Members of Congress and their staffs, analysts in congressional and administrative agencies, members of the media, scholars, and citizens interested in the Nation’s social policy."

The Senate also has a committee that deals with revenue and individual federal benefits, the Senate Finance Committee. Its charge is very similar. The only significant difference being that the Senate committee also deals with Medicaid, while in the House the Energy and Commerce Committee has Medicaid in its jurisdiction.

As part of its charge to monitor the federal government’s bonded debt, the Ways and Means Committee holds hearings on any bills related to raising the debt ceiling. With a government shutdown looming within days of Congress’s return, the Committee will have to tackle that hurdle first. Whatever the outcome is of that debate will almost certainly filter into discussions of tax reform and budget appropriations next, although spending (aka appropriations) fall under the jurisdiction of the Appropriations Committee, not Ways and Means.

Current Ways and Means Chairman Kevin Brady (R-TX) stated before leaving for the spring recess that the committee would hold hearings on tax reform legislation through the spring in preparation for a House vote in the summer. The Senate Finance Committee may hold anticipatory hearings around issues known to be part of the House bill, but nothing will move forward until the House bill advances.

Expect debate on tax cuts, a central aspect of the Republican platform, and the extent to which they’re paid for, to be at the forefront of the news for the next several months.

What do you think should be the focus of tax reform legislation? Use the "Take Action" button to let your reps know what you think!

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— Asha Sanaker

(Photo Credit: Gage Skidmore via Flickr / Creative Commons)