How Tax Code Can Be Developed Essay

1348 Words Oct 9th, 2016 6 Pages
There are several different ways that tax code can be developed. The main way is through the Legislative process. The first step in the Legislative process is the House of Representatives Ways and Means Committee. Most tax bills will start out here, although other could be attached as “riders” to legislative bills in the Senate. Once a bill has passed the Ways and Means committees consideration, it would then be sent on to the generate House. The second step is the entirety of the House deciding whether to approve or disapprove of the bill. If it is approved, it is sent to the Senate for step 3. As part of step 3, the bill is first sent to the Senate’s Finance Committee, where they are again considered and judged before being put before the entire Senate. If the bill passes the Finance Committees approval, it is sent to step 4. Step 4 is when the bill is debated and a decision is made on the bill by the whole Senate. Here, the process of the bill splits. If the bills passed by the House and the Senate are the same, it is sent on to step 7. However, if the bills differ then they are sent on to step 5. Step 5 is a Joint Conference committee between the House and Senate to reconciliation of the differences between the two bills. The committee is usually made up of members of the House’s Ways and Means and the Senate’s Finance Committees, and once they have reached a compromise on the two bills, the final version of the bill is sent into Step 6. Step 6 is another vote, by both…

Related Documents