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. Such legislation may (1) increase revenues, (2) decrease revenues by lowering taxes or by providing new exemptions, deductions, or credits—often referred to as tax expenditures —or (3) redistribute the incidence of taxation without significantly changing overall revenue amounts. Revenue legislation may make changes to excise taxes, individual and corporate income taxes, social insurance taxes, or tariffs and duties. Congress may consider such legislation either as a measure dedicated solely to revenues or as a provision in another type of measure. (It should be noted that the phrase "revenue measures" as used throughout this report applies to all measures containing revenue provisions.) 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. Such rules significantly affect revenue legislation, in particular by shaping their content and having an impact on their timing. 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, including when they apply and to what legislation. The requirements related to the origination and referral of revenue measures are derived from the Constitution, as well as House and Senate rules, and are supplemented by established practice and policies established by the Speaker. The general effect of such rules and practice is to define what constitutes "revenue" in order to allow Congress to centralize and coordinate the development and consideration of revenue measures. Article I, Section 7, clause 1, of the U.S. Constitution, referred to as the Origination Clause, states: All Bills for Raising revenue shall originate in the House of Representatives; but the Senate may propose or concur with Amendments as on other Bills. This clause prescribes that the House, not the Senate, must originate measures that contain revenue provisions. It is generally accepted that the goal of the Origination Clause was to grant the power to tax to the chamber directly elected by the people and as part of the compromise that enabled the Philadelphia Convention to create a bicameral Congress. The Senate may author revenue provisions but only as amendments to House-originated measures that already contain revenue provisions. Senate rules place no general limits, however, on the Senate's power to amend, so the Senate may amend a House bill containing revenues with any other type of revenue provisions. For instance, in the 111 th Congress, the Senate took up H.R. 3590 , a House bill to provide tax credits to servicemembers, and inserted in the bill language overhauling the health care system including a number of revenue provisions, which ultimately became the Patient Protection and Affordable Care Act ( P.L. 111-148 ). The Origination Clause does not necessarily extend to other types of receipts or collections, often referred to as "user fees," which are further discussed below, nor to budget resolutions, because budget resolutions only establish revenue levels for governing subsequent consideration of legislation and do not provide revenue-raising language. As with other provisions of the Constitution, the Supreme Court can hear cases concerning the Origination Clause. If the Court were to find that a revenue bill had been enacted in violation of the Origination Clause, the statute could be struck down. Additionally, the House and Senate each have internal procedures and practices related to enforcement of the Origination Clause. If the House determines that a measure received from the Senate violates its prerogatives under the Origination Clause, it may respond by employing either the formal procedure of "blue-slipping" or a number of other less formal practices. Blue-Slipping House Rule IX, clause 2(a)(1), provides for the process of blue-slipping, which is the term used to describe the act of formally returning a measure to the Senate that the House has determined violates the Origination Clause. The term blue-slipping is derived from the color of paper on which the resolution returning the offending bill to the Senate is printed. If the House decides to use the blue-slip procedure, a Member—typically the chair of the House Ways and Means Committee —raises a question of the privileges of the House in the form of a resolution expressing that the prerogatives of the House have been violated. The text of such a resolution typically reads: Resolved, That the bill of the Senate ... in the opinion of this House, contravenes the first clause of the seventh section of the first article of the Constitution of the United States and is an infringement of the privileges of this House and that such bill be respectfully returned to the Senate with a message communicating this resolution. This is a highly privileged resolution and has precedence over all other motions, except a motion to adjourn. If the Speaker determines that the resolution does raise a valid question of privilege, the House proceeds to the immediate consideration of the resolution. The resolution is considered under the hour rule, and if agreed to, the resolution is sent, along with the offending measure, back to the Senate. Other Practices As a constitutional requirement, the House has an affirmative responsibility to enforce the Origination Clause if it determines that the Senate has violated its prerogative, so it cannot be waived. It does not, however, have to blue-slip the measure but may respond to the offending measure in several other less formal ways. For example, the House may simply take no action on the violating measure or refer the measure to committee, in which case the committee may choose to report a House bill rather than to consider the Senate bill further. The House may also use a conference committee or an exchange of amendments between the chambers as a way of dealing with a questionable measure by removing the offending provision. The Origination Clause can also be enforced by the Senate. Any Senator may raise a point of order if the pending measure or amendment is in question of violating the Constitution. Constitutional points of order are submitted by the presiding officer directly to the Senate to be decided by majority vote. Although revenue provisions can deal with different types of subject matter, both House and Senate rules grant only one committee in each chamber jurisdiction over revenue measures: the House Ways and Means Committee (House Rule X, clause(1)(t)) and the Senate Finance Committee (Senate Rule XXV, clause (1)(i)). Revenue measures introduced in either chamber, therefore, are referred to these committees. House and Senate rules protect the jurisdiction of these committees not only through referral but also by making certain legislation that contains revenue provisions out of order if not reported by either revenue committee. The Budget Committees, however, may affect revenue legislation in two major ways: (1) by setting forth overall revenue totals in the budget resolutions that can be enforced by points of order on the House and Senate floor, and (2) by including reconciliation instructions in the budget resolution that direct the House Ways and Means and Senate Finance Committees to report revenue changes within their jurisdictions that would accomplish a particular budgetary goal. For more information, see sections on the budget resolution and budget reconciliation process below. House Rule X grants the House Ways and Means Committee jurisdiction over revenue measures, including customs revenue, revenue measures generally, and revenue measures relating to insular possessions. House rules provide that every measure be referred to each committee having jurisdiction over subject matter within the bill to the maximum extent feasible, thereby requiring any measure containing a revenue provision to be referred to the Ways and Means Committee for consideration of those provisions. In the House, if a measure contains provisions that touch on the jurisdiction of more than one committee, the Speaker designates a committee of primary jurisdiction and then will typically refer the bill to one or more additional committees for consideration of the portion of the measure within that committee's jurisdiction. Therefore, if a measure is predominantly revenue related, Ways and Means would be the committee of primary referral. If the measure is not predominantly revenue related but contains revenue provisions, it would be referred a committee of primary jurisdiction and also to Ways and Means for consideration of revenue provisions. House rules further protect the jurisdiction of the Ways and Means Committee by providing for a point of order against any measure or amendment containing a tax or tariff provision if not reported from Ways and Means. Specifically, the rule states: A bill or joint resolution carrying a tax or tariff measure may not be reported by a committee not having jurisdiction to report tax or tariff measures, and an amendment in the House or proposed by the Senate carrying a tax or tariff measure shall not be in order during the consideration of a bill or joint resolution reported by a committee not having that jurisdiction.