III. JOINT COMMITTEE ROLE IN THE TAX LEGISLATIVE PROCESS

The Joint Committee staff are closely involved in every stage of the tax legislative process. This part

describes the typical tax legislative cycle.

Committee hearings

Early in the legislative process, both the House Ways and Means Committee and the Senate Finance

Committee hold hearings on tax legislative proposals. The Joint Committee staff generally prepare a

hearing pamphlet examining the issues to be addressed. The hearing pamphlets typically describe

present law and the proposal that is the subject of the hearing. The pamphlets also often provide an

in-depth legal and economic analysis of the issue being considered. These pamphlets vary in length

from a few pages to over one hundred pages. The staff also prepare several pamphlets every year that

are not for specific hearings, such as the Tax Expenditures pamphlet (which the staff produce

pursuant to the requirements of the 1974 Budget Act) and a pamphlet listing all current Federal

excise taxes.

Joint Committee staff members are present at hearings to answer questions that Members, their

staffs, and committee staffs may have. The staff also frequently brief Members and their staffs on

issues that could arise during the hearing and assist in the formulation of questions for Members to

ask witnesses testifying before the committee.

Preparation of bills

The Joint Committee staff assist all Members in preparing bills for introduction. This assistance

includes development and analysis of proposals, assistance in preparation of a statutory draft, and

preparation of a description of the bill. This description may be either a technical explanation or a

brief description for the general public (or both). This assistance typically involves meetings with the

Member or the Member's staff, as well as constituents and others. Some of these bills form the basis

for proposals included in tax bills, while others do not proceed further through the legislative

process.

Preparation for Ways and Means Committee markup

The Joint Committee staff work very closely with the Chairman of the Ways and Means Committee

and his staff in preparing for committee markup of tax legislation. The Joint Committee staff, along

with the committee staff, help develop proposals and statutory language for potential inclusion in a

Chairman's Mark (the proposal put forward by the Chairman in recent years for committee

consideration at the start of the markup process). The Joint Committee staff help analyze the

arguments for and against the proposals, as well as help to design proposals that meet the specific

policy, technical, and revenue goals of the Chairman. The Joint Committee staff also prepare revenue

analyses of the proposals for markup.

The Joint Committee staff assist the minority committee Members and their staff, upon their request,

in the preparation of markup alternatives. This assistance can range from the preparation of a

complete alternative package to the preparation of specific amendments in discrete areas. The Joint

Committee staff also provide these services for individual Members of both the majority and

minority parties.

As decisions are made about proposals for markup, the Joint Committee staff prepare writeups

describing the proposals and their effects on present law. The Joint Committee staff also prepare a

revenue analysis for each of the proposals, as well as a revenue table reflecting all the proposals in a

particular markup package. The Joint Committee staff often produce distributional analyses of the

effects of major legislative proposals.

Part III - Joint Committee History & Background Page 1 of 4

http://permanent.access.gpo.gov/lps78154/rolehist.htm 07/22/11
Ways and Means Committee markup

When the committee begins markup, the Chief of Staff of the Joint Committee sits at the witness

table and describes the legislative proposal before the committee. In addition, the Chief of Staff

answers questions from the Members relating to the proposed legislation. As amendments are raised

by other Members, the Chief of Staff frequently describes the amendments and answers questions

about the amendments from other Members. The Joint Committee staff may also answer questions

about the tax policy and administrative aspects of proposals under consideration. As amendments are

adopted in markup, the Joint Committee staff analyze the revenue impact of those amendments, and

keep a running total of the revenue effects of the committee's actions.

While markup is in progress, members of the Joint Committee staff meet with committee staff and

legislative counsel attorneys to help draft the statutory language for any amendments to the

Chairman's mark. The Joint Committee staff have the primary responsibility for writing the

legislative explanation that will accompany the committee's legislation. At the conclusion of markup,

the Joint Committee staff compile comments that have been received from the committee's staff on

the draft of the legislative explanation and produce the final version of the committee report. Often

this must be done in a very short time period. In addition, the Joint Committee staff prepare the final

revenue table reflecting all decisions made by the committee. The committee report and statutory

language are then filed on the House floor. In addition, the Joint Committee staff assist the

committee's staff in their preparation of (1) talking points for the Chairman to use in explaining the

committee's action, (2) a summary of the committee's action for members of the news media, and (3)

any materials that may be necessary for the Rules Committee or the House floor.

Simultaneously, the Joint Committee staff assist Members of the minority (upon their request) in

preparing amendments to the committee's bill for consideration by either the Rules Committee or the

floor.

When tax legislation is considered on the floor, the Joint Committee staff are available to answer

questions about the content of the committee's bill and possible amendments.

Senate Finance Committee markup

Markup in the Senate Finance Committee is similar to markup in the Ways and Means Committee,

with two principal exceptions. First, the Finance Committee generally uses a Joint Committee staffprepared description of the House-passed bill as its starting point. Second, Finance Committee

procedure typically allows the consideration of a large number of amendments. Consequently, the

Joint Committee staff spend a great deal of time assisting Members of both the majority and minority

in the preparation of amendments and alternative packages. The Finance Committee generally does

not mark up statutory language but rather uses the Joint Committee description of proposal as the

basis of the markup.

Production of the committee report and legislative language for tax legislation considered by the

Senate Finance Committee is similar to that on the House side.

Senate Floor consideration

Joint Committee staff assist Senators and their staffs in the preparation of possible floor

amendments. Members of the Joint Committee staff are also present on the Senate floor when tax

legislation is being considered. The Joint Committee staff respond to questions from Senators and

their staffs, as well as committee staffs, about amendments that might be considered by the Senate.

In addition, the Joint Committee staff prepare revenue analyses of amendments that may be

considered on the Senate floor and assist in the preparation of explanatory materials.

Part III - Joint Committee History & Background Page 2 of 4

http://permanent.access.gpo.gov/lps78154/rolehist.htm 07/22/11
Preparation for Conference

After the House has passed the bill, and simultaneously with its consideration on the Senate floor,

the Joint Committee staff begin preparing for conference. The Joint Committee staff prepare side-byside revenue tables for all provisions in both bills as well as a side-by-side document describing all

the provisions in both bills. The Joint Committee staff meet with members of the conference

committee, as well as their staffs, to analyze the effects of proposals that might be considered by the

conferees, as well as clarifications and modifications to those proposals.

Conference Committee

At the start of the conference, the Chief of Staff of the Joint Committee describes the content of the

two bills. The staff meet with the conferees, and most especially the two Chairmen of the tax-writing

committees, to assist them in developing possible compromise proposals on matters before the

conference. In addition, the Joint Committee staff assist the staffs of the Ways and Means and

Finance Committees in developing offers that will go from one side to the other. Simultaneous with

assistance in the conference negotiations, the Joint Committee staff assist in drafting the statutory

language that will implement the decisions of the conferees and estimate the revenue consequences

of the various compromise proposals. The Joint Committee staff also have the primary responsibility

for writing the explanatory statement of managers portion of the conference report.

At the conclusion of the conference, the Joint Committee staff are responsible for incorporating the

comments of the committees' staffs into the statement of managers. The Joint Committee staff

produce the final statement of managers as soon as possible after the conferees conclude their

process.

Conclusion of Conference

Once the conferees have completed their work and the Joint Committee staff have prepared both the

statement of managers and the final revenue table, the staff assist the Chairmen and the committee

staffs in the preparation of explanatory materials describing the conferees' decisions. The staff

answer questions from Members' offices, from private parties, and from the news media, regarding

the decisions made by the conferees. The staff also assist in answering questions on the floors of

both the House and Senate that arise in the consideration of the conference report.

Consultation with the Administration

The Joint Committee staff consult with Treasury and IRS throughout the legislative process. This

permits the staff to gain a better understanding of Administration proposals, to assess the impact of

proposals on the current tax system, and to address administrative and compliance issues that will

arise if proposals are enacted. These efforts often result in a better legislative product and avoid

technical corrections or other future amendments.

Meeting with outside parties

Throughout the entire legislative process, meetings are held with representatives of outside parties

who may be affected by the legislation being considered. The Joint Committee staff do so at the

outside parties' request, at a Member's request, and on the staff's own initiative. These meetings help

the Joint Committee staff assess the impact of the provisions, understand their effect on the private

sector, and consider and analyze requests for modifications.

Return to Home Page

Return to Main Table of Contents

Part III - Joint Committee History & Background Page 3 of 4

http://permanent.access.gpo.gov/lps78154/rolehist.htm 07/22/11
Return to History Table of Contents

Part III - Joint Committee History & Background Page 4 of 4

http://permanent.access.gpo.gov/lps78154/rolehist.htm 07/22/11