Summary: The House Ways and Means Committee, Congress’s oldest tax-writing body, has played a central role in U.S. fiscal policy since the nation’s founding. All major tax laws, including the One Big Beautiful Bill, originate here. Its members often become national leaders, highlighting its prestige. The House Ways and Means Committee is responsible for negotiating and drafting legislation on laws related to taxes, tariffs, and social service programs, making it one of the most influential forces in government.
The most recent tax provision package that originated in the House Ways and Means Committee (Committee) was an integral part of the One Big Beautiful Bill (OBBB), which was signed into law by the President on July 4th, 2025. The OBBB was heavily debated between both chambers of Congress. Several provisions introduced through the Committee presented in the original House version were amended or removed from the bill’s final form.
Committee Influence on Tax Legislation
The “Revenge Tax” Provision
One provision that was stripped from the bill after sparking significant discussion was the enforcement of remedies against unfair foreign taxes, also known as the “revenge tax.” The revenge tax was designed as a retaliatory tax aimed at foreign individuals and companies in G7 country jurisdictions who imposed “unfair” foreign taxes on United States companies. Although the Senate did not initially strike this provision, it was later amended and ultimately removed after a deal was reached between G7 countries and the U.S. Department of Treasury.
Other Noteworthy Provisions and Revisions
The Committee also introduced a deduction for qualified tips and overtime compensation that did not survive in its original form. Initially, the deduction for qualified tips and overtime compensation would have allowed eligible taxpayers under certain income thresholds to deduct the entirety of their tip or overtime earnings. Another provision that saw Senate revision before final passage was a proposed increase to the pass-through deduction for qualified business income, raising the deduction from 20% to 23% for pass-through business owners.
These examples demonstrate how Committee-proposed provisions can be significantly revised or omitted during the legislative process, while also illustrating the substantial influence the Committee has in shaping the nation’s tax landscape.
What is the Origination Clause?
During the Constitutional Convention in September 1787, government spending and authorization were central topics of debate. The framers intended for Congress, not the President or executive branch, to control public funds, resulting in the Origination Clause of the United States Constitution. This clause granted Congress, specifically the House of Representatives, the exclusive responsibility and authority to introduce all tax and revenue-raising legislation.
It’s important to understand that although revenue-raising legislation is required to originate in the House, the Senate retains the authority to amend or strike provisions once a bill has passed in the House and moved to the Senate. This collaborative dynamic ensures that both chambers of Congress work together to pass legislation.
The Purpose of the House Ways and Means Committee
When the First Congress convened in 1789, the Ways and Means committee was established as a temporary Committee to help guide fiscal development for the new nation. Two months after formation, the Committee was discharged, then reappointed in 1795 and officially recognized as a standing Committee in 1802. In its early years, the Committee held jurisdiction over all revenue, appropriations, and banking, but this broad jurisdiction was quickly narrowed.
After the Civil War in 1865, the government grappled with significant national debt and spending consistently exceeding the revenue coming in. This prompted the House of Representatives to separate taxing and appropriation functions, leaving tax policy to the Ways and Means Committee, and shifting appropriation and banking to new or existing Committees. Despite periodic jurisdictional changes, the Committee’s authority remains broad and far-reaching to this day, encompassing a wide scope of responsibility, including taxes and other revenue raising measures, tariffs, reciprocal trade agreements, and the bonded debt of the United States.
It also oversees proper implantation of legislation, budget monitoring, and collaborates with the executive branch, including agencies like the Internal Revenue Service (IRS) and the Department of Treasury, for the enactment of provisions such as those in the OBBBA. The Committee’s responsibilities extend to revenue-raising functions under Social Security, Medicare, foster care, and adoption.
How the Chair Shapes Committee Priorities and Lawmaking
To effectively manage its broad responsibilities, the Committee designates a Chair at the start of each new Congress, especially when the majority party changes. The Chair, typically a senior member of the majority party, has significant influence over revenue and economic legislation. Jason Smith, a Congressman from Missouri, currently serves as Chair, appointed in January 2023 after a decade in Congress and previous leadership roles, including positions as Conference Secretary and the Republican leader of the House Budget Committee.
As Chair, some of Smith’s responsibilities include oversight of the drafting and advancement of legislation, management of Committee proceedings, budget management, and agenda setting, arguably one of the most telling indicators of what legislative priorities and issues the Committee intends to prioritize. After determining these priorities and issues, the Committee drafts legislation, which then progresses to Committee proceedings. During these proceedings, the Committee members collaborate with various government agencies to gather relevant information and input for any proposed tax, changes to social programs, or trade agreements. The legislation is also debated, marked up, and amended based on said input and negotiations. Once finalized, the legislation advances to the House floor for further debate, amendment, or voting.
The Role of the Ranking Member
Because the Chair is a member of the majority party, the committee also designates a Ranking Member, typically a senior member of the minority party, to act as a counterweight. Richard Neil, a Congressman from Massachusetts, currently serves as the Committee’s Ranking Member.
Congressman Neil was elected to Congress in 1988, has served on the Ways and Means Committee since 1993, and was previously Chair of the Committee in 2019 until Congressman Smith was appointed in 2023. The Ranking Members list of responsibilities is vast:
- Acts as a key negotiator for minority party Committee members
- Protects their rights and procedures
- Leads legislative debate
- Manages amendments and markups on behalf of the minority party
Subcommittees and Oversight
To manage the volume of jurisdiction and facilitate specialized expertise, The Ways and Means Committee has six Subcommittees — Tax, Trade, Health, Oversight, Work and Welfare, and Social Security, Each Subcommittee is responsible for drafting legislation designated to their specific area, and is made up of several members, each with their own Chair and Ranking Member.
To fulfill the responsibility of oversight by Congress, each Subcommittee works directly with different agencies under the executive branch, including:
- The Department of Treasury
- The Department of Homeland Security
- The U.S. International Trade Commission
- The IRS
- The U.S. Trade Representative
This collaboration ensures that there is proper implementation of new laws, budgets are monitored, and new, relevant information can be gathered for future legislation.
Understanding the Committee’s Impact and Agenda
The wide range of issues overseen by the Ways and Means Committee makes it difficult to predict outcomes, but there are several resources Americans can monitor to better understand the Committee’s focus.
Committee Agenda: The agenda dictated by the Chair gives great insight into issues the Committee will be addressing and what legislation might be coming down the pipeline. Since Committee proceedings occur after legislation has been drafted, they are indicative of Committee members’ perspectives on drafted legislation. While it is not impossible, legislation that has lengthy debates without resolution or strong opposition could be a sign that the legislation is not likely to progress to the House floor, while road support and minimal opposition imply likely advancement.
Congressional Budget Resolution: The Congressional Budget Act (the Budget Act) requires Congress to finalize a concurrent budget resolution before April 15th of each fiscal year. The Budget Act requires Congress to detail total spending, total revenue, anticipated legislation changes, the surplus or deficit between the two, new spending, public debt levels, and specific expenses and revenues of the Social Security Department. This comprehensive fiscal document is a great resource for analyzing potential legislative activity.
Final Thoughts: Committee Influence and Congressional Dynamics
The House Ways and Means Committee will continue to play a central role in shaping the fiscal trajectory of the United States through its authority over taxation, revenue-raising, and other key economic functions of the federal government. Decisions on revenue and spending are among the most debated issues in Congress, and policies advanced by the Committee can have a significant impact on economic growth.
While legislation requires collaboration between both chambers of Congress, the Committee’s activity offers Americans valuable insight into Congress’s fiscal objectives and legislative priorities.
