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The U.S. Constitution requires that all bills regarding taxation must originate in the House of Representatives. Since House procedure is that all bills regarding taxation must go through this committee, the committee is very influential, as is its Senate counterpart, the U.S. Senate Committee on Finance.
Recent chairs have included Bill Thomas, Charlie Rangel and Sander Levin. The committee is currently chaired by Dave Camp.
The idea of a "Committee of Ways and Means" to handle the financial matters of a legislature is an old one, having been used in the British Parliament and the colonial and early state legislatures in America.
The Committee was first established during the first Congress, in 1789. However, this initial version was disbanded after only 8 weeks; for the next several years, only ad hoc committees were formed, to write up laws on notions already debated in the whole House. It was first established as a standing committee by resolution adopted December 21, 1795,[1] and first appeared among the list of regular standing committees on January 7, 1802.[2] Upon its original creation, it held power over both taxes and spending, until the spending power was given to the new Appropriations Committee in 1865.
During the Civil War the key policy-maker in Congress was Thaddeus Stevens, as chairman of the Committee and Republican floor leader. He took charge of major legislation that funded the war effort and permanently transformed the nation's economic policies regarding tariffs, bonds, income and excise taxes, national banks, suppression of money issued by state banks, greenback currency, and western railroad land grants.[3] Stevens was one of the major policymakers regarding Reconstruction, and obtained a House vote of impeachment against President Andrew Johnson (who was acquitted by the Senate in 1868). Hans Trefousse, his leading biographer, concludes that Stevens "was one of the most influential representatives ever to serve in Congress. [He dominated] the House with his wit, knowledge of parliamentary law, and sheer willpower, even though he was often unable to prevail."[4] Historiographical views of Stevens have dramatically shifted over the years, from the early 20th-century view of Stevens and the Radical Republicans as tools of big business and motivated by hatred of the white South, to the perspective of the neoabolitionists of the 1950s and afterwards, who applauded their efforts to give equal rights to the freed slaves.
Three future presidents - James Polk, Millard Fillmore, and William McKinley - served as Committee Chairman. Before the official roles of floor leader came about in the late 19th century, the Chairman of Ways and Means was considered the Majority Leader. The Chairman is one of very few Representatives to have office space within the Capitol building itself.
Because of its wide jurisdiction, Ways and Means has always been one of the most important committees with respect to impact on policy. Although it lacks the prospects for re-election help that comes with the North American Free Trade Agreement (NAFTA) and the Central America Free Trade Agreement (CAFTA). Second, given the wide array of interests that are affected by the committee, a seat makes it very easy to collect campaign contributions.[5]
Until 1974, the Ways and Means Committee decided which chairmanships newly elected members of Congress would have, along with its regular financial duties.[6] When Ways and Means chair Wilbur Mills' career ended in scandal, Congressman Phillip Burton transferred the committee's selection powers to a separate, newly created committee.[6]
There are six subcommittees in the 113th Congress. In 2011, the Subcommittee on Income Security and Family Support was renamed the Subcommittee on Human Resources, returning to the name it held prior to the 110th Congress.[7]
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