The Origination Clause , sometimes called the Revenue Clause , is Article I , Section 7, Clause 1 of the U.S. Constitution . The clause says that all bills for raising revenue must start in the U.S. House of Representatives , but the U.S. Senate may propose or concur with amendments, as in the case of other bills.
124-568: The Origination Clause stemmed from a British parliamentary practice that all money bills must have their first reading and any other initial readings in the House of Commons before they are sent to the House of Lords . The practice was intended to ensure that the power of the purse is possessed by the legislative body most responsive to the people, but the British practice was modified in America by allowing
248-651: A provisional order . Bradley and Ewing said that the statutory definition of "Money Bill" is "strictly interpreted". Most annual Finance Bills have not been certified to be money bills. While the United States of America is not a parliamentary democracy , the Origination Clause of the U.S. Constitution requires that all bills raising revenue originate in the House of Representatives , consistent with British constitutional practice; by convention, appropriation bills (bills that spend money) also originate in
372-806: A 'money bill' by the Speaker of the Lower House. The Upper House proposed certain amendments, but ultimately the BJP -dominated Lower House rejected the amendments suggested by the Upper House and unilaterally enacted the Aadhar Act, 2016. Immediately thereafter, Jairam Ramesh , a senior Congress leader, challenged the speaker's decision to treat the Aadhar Bill as a 'money bill' before the Supreme Court of India. Article 110(3) of
496-460: A constitution bench of at least nine judges to settle the law on this issue. The five judge bench decided that the Aadhar Bill was a Money Bill by a vote of 4–1. The 1937 Constitution of Ireland defines a money bill ( Irish : bille airgid ) as one concerning only specified financial matters. The Seanad (upper house of the Oireachtas or parliament) has restricted powers over money bills, and
620-691: A constitutional right to virtually represent the colonial subjects. Burke supported the doctrine of virtual representation in Britain. Yet in his Parliamentary speech of 1774, entitled On American Taxation , Burke responded to the suggestion that America was virtually represented in Parliament by remarking: What! does the electric force of virtual representation more easily pass over the Atlantic than pervade Wales, which lies in your neighborhood? or than Chester and Durham, surrounded by abundance of representation that
744-491: A discharge of insolvent debtors upon assignments of their estates to the United States, giving a priority of payment to the United States in cases of insolvency, although all of them might incidentally bring, revenue into the treasury. The U.S. Supreme Court has decided several cases involving this clause, and all of those challenges to federal statutes failed. For example, in the 1911 case of Flint v. Stone Tracy Company ,
868-597: A higher example in Wales—Wales, that never was taxed by Parliament till it was incorporated." He then said, I am no courtier of America. I stand up for this kingdom. I maintain that the Parliament has a right to bind, to restrain America. Our legislative power over the colonies is sovereign and supreme. When it ceases to be sovereign and supreme, I would advise every gentleman to sell his lands, if he can, and embark for that country. When two countries are connected together like England and her colonies, without being incorporated,
992-410: A method of supply. However, Burke apparently qualified such remarks concerning America by stating in the same speech that: The Parliament of Great Britain ... is never to intrude into the place of the [provincial legislatures], whilst they are equal to the common ends of their institution. But in order to enable [Parliamentary] ... superintendence, her powers must be boundless. The gentlemen who think
1116-579: A pamphlet, wrote by one of their members, in which there are proposals for admitting representatives from the Colonies to fit in the House of Commons. I have this special reason, my Lord, for taking notice of this Act of the Massachusetts Assembly; that though an American representation is thrown out as an expedient which might obviate the objections to Taxes upon the Colonies, yet it was only intended to amuse
1240-453: A pretence for taxing them. Edmund Burke responded to Knox, who had drawn up The Controversy between Great Britain and her Colonies Reviewed as well as The Present State of the Nation under the supervision of George Grenville, by opining in his political tract Observations on a Late State of the Nation : NOW comes [Knox's] American representation ... Is not the reader a little astonished at
1364-735: A renewed boycott movement against British wares. Most of the taxes in the Townshend Acts were repealed in 1770 by the Ministry of Lord North . The passage of the Tea Act in May 1773, which enforced the remaining taxes on tea, led to the Boston Tea Party on December 16, 1773. The Parliament considered this an illegal act because they believed it undermined the authority of the Crown-in-Parliament . When
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#17328452140531488-465: A scale never before seen in history." Virtual representation was wholly rejected in the colonies also. The colonial position was that the "virtual" was a cover for political corruption and was irreconcilable with their belief that government derives its just powers from the consent of the governed . In 1765, the American lawyer and politician James Otis, Jr., responded to Soame Jenyns' The Objections to
1612-538: A scheme for a representation of the colonies in Parliament. Perhaps I might be inclined to entertain some such thought; but a great flood stops me in my course. Opposuit Natura. I cannot remove the eternal barriers of the creation. The thing, in that mode, I do not know to be possible. As I meddle with no theory, I do not absolutely assert the impracticability of such a representation; but I do not see my way to it; and those who have been more confident have not been more successful ... My resolutions, therefore, mean to establish
1736-594: A statute that raises revenue to support Government generally, is not a "Bil[l] for raising Revenue" within the meaning of the Origination Clause. What this means exactly is disputed. According to one scholar, a statute is outside the scope of the Origination Clause if it "imposes an exaction not to raise revenue, but to enforce a statute passed under the Commerce Clause or other enumerated power." However, according to another scholar, even exactions imposed only under
1860-465: A substitute amendment could have the same effect as an origination: "the Senate could strike out every word of the bill except the word whereas, or any other introductory word, and might substitute new words of their own." Grayson was not convinced by Madison's argument that "the first part of the clause is sufficiently expressed to exclude all doubts" about where the origination must occur. In its final form,
1984-470: A virtual representation, it is so absurd as not to deserve an answer; I therefore pass it over with contempt. The forefathers of the Americans did not leave their native country, and subject themselves to every danger and distress, to be reduced to a state of slavery: they did not give up their rights; they looked for protection, and not for chains, from their mother country; by her they expected to be defended in
2108-423: Is actual and palpable? But, Sir, your ancestors thought this sort of virtual representation, however ample, to be totally insufficient for the freedom of the inhabitants of territories that are so near, and comparatively so inconsiderable. How, then, can I think it sufficient for those which are infinitely greater, and infinitely more remote? You will now, Sir, perhaps imagine that I am on the point of proposing to you
2232-441: Is demanded,—one or two, suppose, hang back, and, easing themselves, let the stress of the draft lie on the others,—surely it is proper that some authority might legally say, 'Tax yourselves for the common Supply, or Parliament will do it for you.' This backwardness was, as I am told, actually the case of Pennsylvania for some short time towards the beginning of the last war, owing to some internal dissensions in that colony. But whether
2356-455: Is final and is not subject to challenge. Section 1(2) of the Act states: A Money Bill means a Public Bill which in the opinion of the Speaker of the House of Commons contains only provisions dealing with all or any of the following subjects, namely, the imposition, repeal, remission, alteration, or regulation of taxation; the imposition for the payment of debt or other financial purposes of charges on
2480-401: Is humbly conceived no man or body of men, not excepting the parliament, justly, equitably and consistently with their own rights and the constitution, can take away ... [are that the] supreme and subordinate powers of the legislation should be free and sacred in the hands where the community have once rightfully placed them ... [that the] supreme national legislative cannot be altered justly 'till
2604-456: Is intended to extort our money from us or ruin us by the consequence of refusing to pay it." To those sympathetic to republicanism , such as James Burgh , Catherine Macauley , and Richard Price , any tax revenue measures that were voted into effect without the direct representation of Americans were "unconstitutional" and "pernicious". Burgh felt that virtual representation was "subversive of liberty" and "unjust in its principles" and that
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#17328452140532728-664: Is no judicial review of the Ceann Comhairle's ruling; if the Seanad disagrees with it, the President may establish a Committee of Privileges to adjudicate, with equal membership from both houses and chaired by a Supreme Court judge. No such committee has been established under the 1937 constitution, but one was established for a 1935 bill under the 1922 Constitution of the Irish Free State , which contained similar provisions until
2852-403: Is often a constitutional convention that the upper house may not block a money bill. There is often another requirement that non-money bill-type clauses may not be attached to a money bill. The rationale behind this convention is that the upper house, being appointed or indirectly elected, should not have any right to decide on taxation and public expenditure-related policies as may be framed by
2976-415: Is part of the common law, part of a British subjects birthright, and as inherent and perpetual, as the duty of allegiance; both which have been brought to these colonies, and have been hitherto held sacred and inviolable, and I hope and trust ever will. It is humbly conceived, that the British colonists (except only the conquered, if any) are, by Magna Charta, as well entitled to have a voice in their taxes, as
3100-411: Is the doctrine new, it is as old as the constitution; it grew up with it; indeed it is its support; taxation and representation are inseparably united; God hath joined them, no British parliament can separate them; to endeavour to do it, is to stab our very vitals. ... My position is this—I repeat it—I will maintain it to my last hour,—taxation and representation are inseparable; this position is founded on
3224-566: Is thrown out as an expedient which might obviate the objections to Taxes upon the Colonies, yet ... it was renounced ... by the Assembly of the Colony which first proposed it, as utterly impracticable. Jared Ingersoll Sr. , colonial agent for Connecticut, wrote to his American colleague, the Royal Governor of Connecticut Thomas Fitch , that following Isaac Barre's famous Parliamentary speech against
3348-545: The British government tried to argue that the colonists had virtual representation in their interests. In the winter of 1764–65, George Grenville, and his secretary Thomas Whately, utilized the doctrine of 'virtual representation' in an attempt to extend the scope of such unjust arguments to America, and thereby attempt to legitimize the pernicious policies of the Stamp Act. In English history, "no taxation without representation"
3472-656: The Conciliatory Resolution which ended taxation for any colony which satisfactorily provided for the imperial defence and the upkeep of imperial officers. James Macpherson , a colonial secretary of British West Florida, defended the North administration in an officially sponsored polemic in 1776 named The Rights of Great Britain Asserted . This work replied to the Continental Congress' July 6, 1775 Declaration of
3596-689: The Consolidated Fund , the National Loans Fund or on money provided by Parliament, or the variation or repeal of any such charges; supply; the appropriation, receipt, custody, issue or audit of accounts of public money; the raising or guarantee of any loan or the repayment thereof; or subordinate matters incidental to those subjects or any of them. In this subsection the expressions "taxation," "public money," and "loan" respectively do not include any taxation, money, or loan raised by local authorities or bodies for local purposes. The Parliament Act 1911
3720-621: The Constitution Act, 1867 funds can be appropriated only on the recommendation of the Governor-General . This has resulted in the convention that only ministers introduce money bills. Procedure for a Money Bill: The concept of money bills in India came to the forefront during the enactment of the Aadhar Act, 2016. In spite of resistance by the opposition, the Aadhaar Bill was certified as
3844-552: The Dáil (lower house) The Seanad has 90 days to process other Dáil bills but only 21 days for a money bill; it cannot amend the bill but only recommend amendments for the Dáil to accept or reject. The President 's power under Article 26 to refer bills to the Supreme Court does not apply to money bills. The Ceann Comhairle (Dáil speaker) certifies whether a new bill is a money bill. There
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3968-542: The Great Compromise in which the framers also agreed to allow equality in the Senate, regardless of a state's population, and to allow representation in the House based on a state's population. The framers adopted the Great Compromise on July 16, 1787. The draft clause then stated that "all bills for raising or appropriating money.... shall originate in the [representative house], and shall not be altered or amended by
4092-556: The United States Court of Appeals for the Ninth Circuit . Assuming that a bill is for raising revenue, a further ambiguity in the clause involves how far the Senate's right to amend extends. According to law professor Jack Balkin , the Senate may take a House-originated revenue bill and "substitute a different bill on a different subject." On the other hand, law professor Randy Barnett wrote, "The Supreme Court has never approved
4216-565: The estimates . The Constitution requires all appropriation of public funds to be pre-approved by the Government in the form of a "money message" signed by the Taoiseach . Thus, if a bill extends the powers of a Department of State , it is not a money bill, but if it also imposes a new charge on the public, it still requires a money message. In the Oireachtas, money bills must be introduced in
4340-530: The women's suffrage movement, advocates of District of Columbia voting rights , students seeking to be included in governance in higher education , the Tea Party movement , and others. According to Michael Hudson , the idea had an early precedent in medieval English law, which established the principle in the Magna Carta where chapter 12 states that “(n)o scutage or aid is to be levied in our kingdom, save by
4464-496: The "only" restriction prevents the Government from tacking onto a money bill some non-financial provision which it would like to bypass Seanad scrutiny. The specified financial matters are any of the following: the imposition, repeal, remission, alteration or regulation of taxation; the imposition for the payment of debt or other financial purposes of charges on public moneys or the variation or repeal of any such charges; supply;
4588-635: The 'strike-and-replace' procedure.... " Not only the House of Representatives but also the Senate and the judiciary have sometimes tried to guard the role of the House with regard to origination of revenue bills. For example, as early as 1789, the Senate deemed itself helpless to pass a law levying a tax. As mentioned, a federal court in 1915 struck down legislation contrary to the clause. The U.S. Supreme Court has expressed willingness to address such issues, according to its 1990 opinion by Justice Thurgood Marshall in Munoz-Flores : A law passed in violation of
4712-640: The 1936 abolition of the Free State Seanad made the distinction of money bills moot since they were henceforth treated the same as other bills. In the United Kingdom , section 1(1) of the Parliament Act 1911 provides that the House of Lords may not delay a money bill more than a month. It is at the discretion of the Speaker of the House of Commons to certify which bills are money bills, and his decision
4836-561: The American provinces, and after his return to London in 1761, he recommended the creation of a colonial aristocracy and colonial representation in the British Parliament. He was shortly afterwards appointed agent for Georgia and East Florida , a post which he forfeited by writing in favour of the Stamp Act. In his Grenville-backed pamphlet of 1769, The Controversy between Great Britain and her Colonies Reviewed , Knox suggested that colonial representatives might have been offered seats in
4960-819: The Americans "to send fifty or sixty new representatives to Parliament" on the basis of the amount of taxes they would contribute to the Imperial coffers. Writing in October 1776 to Lord North in Strictures upon the Declaration of the Congress of the recent Declaration of Independence, and particularly of James Otis, Jr.'s pamphlet Rights of the British Colonies and its endorsement by the Massachusetts Assembly, Governor Thomas Hutchinson said, The Assembly of Massachusetts Bay, therefore,
5084-677: The Atlantic, it appears that neither the American Congress, nor the colonial Assemblies, nor the British Government in Westminster , at least prior to the Carlisle Peace Commission of 1778, officially proposed such constitutional developments. Governor Thomas Hutchinson apparently referred to a colonial representational proposal when he wrote that, The Assembly of Massachusetts Bay was the first which ever took exception to
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5208-533: The Attorney-General of Quebec, Francis Maseres , debated and circulated plans for the creation of colonial seats in London, imperial union with Great Britain, or a federally representative British Parliament with powers of taxation that was to consist of American, West Indian , Irish and British Members of Parliament . Despite the fact that these ideas were considered and discussed seriously on both sides of
5332-605: The Australian System is required to pass the House of Representatives , the Senate and be signed by the Governor-General . The Senate has no power or ability to introduce or modify a supply bill, but has the ability to block or defer the passing of a supply bill, and can request the House of Representatives to modify the bill. The most famous instance where supply was blocked was during the 1975 constitutional crisis . This has resulted in agreements between political parties to prevent
5456-520: The British 'commoners' of the various part of the Empire were represented most constitutionally – as Daniel Dulany, an American Loyalist and lawyer, put it "[the] constitutional authority [of Parliament's rights to bind American subjects] depends upon the single question, Whether the Commons of Great-Britain are virtually the representatives of the Commons of America, or not. The theory of virtual representation
5580-600: The British Colonies Asserted and Proved , Otis declared that, Every British subject born on the continent of America, or in any other of the British dominions, is by the law of God and nature, by the common law, and by act of parliament, (exclusive of all charters from the Crown) entitled to all the natural, essential, inherent and inseparable rights of our fellow subjects in Great Britain. Among those rights ... which it
5704-407: The British Colonies Asserted and Proved , a contemporary argument that attempted to rationalise virtual representation on the basis of the colonial agents' alleged influence on British policy. "As to the colonists being represented by the provincial agents," he wrote, I know of no power ever given them but to appear before his Majesty, and his ministry. Sometimes they have been directed to petition
5828-687: The British House of Commons." Dulany, Jr., denied that Parliament had a right "to impose an internal Tax upon the Colonies, without their consent for the single Purpose of Revenue." In 1766, Benjamin Franklin told the House of Commons that, "an internal tax is forced from the people without their consent if not laid by their own representatives. The Stamp Act says we shall have no commerce, make no exchange of property with each other, neither purchase nor grant, nor recover debts; we shall neither marry nor make our wills, unless we pay such and such sums; and thus it
5952-838: The British Parliament if they had sought such representation. Knox submitted that: Whilst [the radical colonists] exclaim against Parliament for taxing them when they are not represented, they candidly declare they will not have representatives [in Parliament] lest they should be taxed ... The truth ... is that they are determined to get rid of the jurisdiction of Parliament ... and they therefore refuse to send members to that assembly lest they should preclude themselves of [the] plea [that Parliament's] legislative acts ... are done without their consent; which, it must be confessed, holds equally good against all laws, as against taxes ... The colony advocates ... tell us, that by refusing to accept our offer of representatives they ... mean to avoid giving Parliament
6076-493: The British parliament". The British Government, similarly, does not appear to have formally requested discussions with the Americans concerning the issue of Parliamentary seats until 1778. In that year "the commissioners of the king of Great Britain," known as the Carlisle Peace Commission of 1778, made an offer to the Congress of "a reciprocal deputation of an agent or agents from the different states, who shall have
6200-488: The British then used the military to enforce laws that the colonists believed Parliament had passed illegally, the colonists responded by forming militias and seized political control of each colony, ousting the royal governors – with the exception of the American-born Royal Governor of Connecticut, John Trumbull, who was allowed to remain as the new Patriot Governor. The complaint was never officially over
6324-659: The Causes and Necessity of Taking Up Arms by proposing that, Had the Americans, instead of flying to arms, submitted the same supposed grievance [as the taxed though unrepresented Palatine counties in England had], in a peaceable and dutiful manner, to the Legislature, I can perceive no reason why their request should be refused. Had they, like the County and City of Chester, represented, that "for lack of Knights and Burgesses to represent them in
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#17328452140536448-421: The Congress stated that the Stamp Act had "a manifest tendency to subvert the rights and liberties of the colonists" and that "the only Representatives of the People of these Colonies, are Persons chosen therein by themselves, and that no Taxes ever have been, or can be Constitutionally imposed on them, but by their respective Legislature." Furthermore, it was declared that, "it is unreasonable and inconsistent with
6572-434: The Constitution of India categorically states that 'if any question arises whether a Bill is a Money Bill or not, the decision of the Speaker of the House of the People thereon shall be final'. Therefore, one of the prime constitutional questions before the Supreme Court is whether it can review the speaker's certificate classifying a bill as a 'money bill'. In three prior cases, the Supreme Court of India has refused to review
6696-407: The Court held, "The amendment was germane to the subject-matter of the bill and not beyond the power of the Senate to propose." However, the plaintiffs in one lower court decision succeeded in striking down a federal statute on Origination Clause grounds. The Supreme Court stated in the 1990 case of United States v. Munoz-Flores : Both parties agree that "revenue bills are those that levy taxes in
6820-401: The Declaratory Bill of the Sovereignty of Great Britain over the Colonies," which was given in parliament. The British government argued for virtual representation , the idea that people were represented by members of Parliament even if they didn't get to vote for them. The term has since been used by various other groups advocating for representation or protesting against taxes , such as
6944-429: The High Court of Parliament, they had been oftentimes TOUCHED and GRIEVED with Acts and Statutes made within the said Court, derogatory to their most ancient jurisdictions, liberties and privileges, and prejudicial to their quietness, rest and peace;" this Country [of Britain] would, I am persuaded, have no objection to their being represented in her Parliament ... If they are not madly bent on independence, let them propose
7068-459: The House of Commons must include colonial representatives when it voted on colonial matters, or operate by using the consent of the colonial Assemblies. American colonists rejected the Stamp Act of 1765 brought in by British Prime Minister George Grenville , and initiated boycotts of British goods which helped bring about the repeal of the Act in 1766. The passage of the Townshend Acts in 1767 and 1768 again led to colonial protests, including
7192-401: The House of Representatives; but the Senate may propose or concur with Amendments as on other Bills. The U.S. Constitution was written in 1787 and adopted in 1789. Several state constitutions followed British practice by providing that "money bills" must start in the more representative branch of the state legislature. Vesting the power of origination in the House of Representatives was part of
7316-438: The House under the Tenth Schedule of the Indian Constitution was held to be a judicial decision subject to judicial review. This suggests that the "final" status given by the Indian constitution does not automatically immune the Indian speaker's decision or certificate from judicial review. In view of this crucial constitutional question, it has been suggested that the Supreme Court in Jairam Ramesh v. Union of India should create
7440-427: The House. Unlike in most Westminster systems, there are no limits on the Senate's ability to amend revenue bills or any requirement for the Senate to approve such bills within a certain timeframe. Both appropriations and revenue bills are often referred to as money bills to contrast them with authorization bills . The U.S. Supreme Court in United States v. Munoz-Flores (1990) held that: "A law passed in violation of
7564-409: The Origination Clause was a major selling point for the ratification of the Constitution. James Madison, who supported the final version during and after the 1787 Convention, wrote the following in Federalist 58 while the debate over ratification raged: The house of representatives can not only refuse, but they alone can propose the supplies requisite for the support of government. They in a word hold
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#17328452140537688-445: The Origination Clause would thus be no more immune from judicial scrutiny because it was passed by both Houses and signed by the President than would be a law passed in violation of the First Amendment". No taxation without representation " No taxation without representation " (often shortened to " taxation without representation ") is a political slogan that originated in the American Revolution , and which expressed one of
7812-428: The Origination Clause would thus be no more immune from judicial scrutiny because it was passed by both Houses and signed by the President than would be a law passed in violation of the First Amendment. In 2012, the joint dissent in the U.S. Supreme Court case National Federation of Independent Business v. Sebelius mentioned that "the Constitution requires tax increases to originate in the House of Representatives" per
7936-400: The Origination Clause, though that issue was not addressed by the majority opinion. In 2014, Sissel v. U.S. Department of Health and Human Services , a challenge to the Affordable Care Act brought by the Pacific Legal Foundation based upon the clause was rejected by a panel of the United States Court of Appeals for the District of Columbia , and that court later declined a request to put
8060-402: The Principles and Spirit of the British Constitution, for the People of Great-Britain, to grant to his Majesty the Property of the Colonists." Daniel Dulany, Jr. , of Maryland, wrote in an influential 1765 pamphlet that, "the Impropriety of a Taxation by the British Parliament ... [is proven by] the Fact, that not one inhabitant in any Colony is, or can be actually or virtually represented by
8184-504: The Revenue they shall furnish. If they wish rather to vote their QUOTA towards the general supply, through their own General Courts and Assemblies, the resolution of Parliament on that subject is still open to their choice. But, as long as they assume the language of a Sovereign State, this Kingdom can enter into no negociation [ sic ], can meet no compromise." The noted economist Adam Smith seconded this view in his famous 1776 publication Wealth of Nations when he recommended
8308-470: The Senate to amend these bills. This clause was part of the Great Compromise between small and large states. The large states were unhappy with the lopsided power of small states in the Senate and so the Origination Clause theoretically offsets the unrepresentative nature of the Senate by compensating the large states for allowing equal voting rights to senators from small states. The clause reads as follows: All Bills for raising Revenue shall originate in
8432-443: The Speaker's certificate. However, some commentators have argued that the Court's earlier judgements were incorrect and Article 110(3) made the Speaker's decision "final" for the purpose of the two Houses of the Parliament, not for the Supreme Court of India. This argument is further supported by the fact that in Kihoto Hollohan vs Zachillhu (AIR 1993 SC 412) , the "final" decision of the speaker regarding disqualification of members of
8556-437: The Stamp Act in 1764, Richard Jackson, M.P., supported Barre and other pro-American M.P.s by producing before the House copies of earlier Acts of Parliament that had admitted Durham and Chester seats upon their petitions for representation. The argument was put forward in Parliament that America should have representatives on these grounds too. Richard Jackson supposed that Parliament had a right to tax America, but he much doubted
8680-491: The Taxation of Our American Colonies, by the Legislature of Great Britain, Briefly Considered . Otis' own publication was entitled Considerations on Behalf of the Colonists, in a Letter to a Noble Lord . He wrote in it, "To what purpose is it to ring everlasting changes to the colonists on the cases of Manchester, Birmingham and Sheffield, who return no members? If those now so considerable places are not represented, they ought to be." Writing in his 1763 publication The Rights of
8804-433: The [other house]. ... " The Origination Clause was modified later in 1787 to reduce the House's power by allowing the Senate to amend revenue bills and by removing appropriation bills from the scope of the clause (the House and Senate have disagreed on the latter point). However, a proposal was defeated that would have reduced the House's power even more by changing "bills for raising revenue" to "bills for raising money for
8928-574: The amount of taxation (the taxes were quite low, though ubiquitous ), but always on the political decision-making process by which taxes were decided in London , i.e. without representation for the colonists in British Parliament . Patrick Henry 's resolution in the Virginia legislature implied that Americans possessed all the rights of Englishmen, that the principle of no taxation without representation
9052-572: The appropriation, receipt, custody, issue or audit of accounts of public money; the raising or guarantee of any loan or the repayment thereof The specification is based on that in the UK's Parliament Act 1911 . There is an exclusion for revenue and spending by local authorities . The main annual money bills are the Finance Bill for implementing the budget and the Appropriation Bill for implementing
9176-474: The author has at length discovered that we have not given a sufficient attention to their concerns, or a proper redress to their grievances. His great friend [Grenville] would once have been exceedingly displeased with any person, who should tell him, that he did not attend sufficiently to those concerns. He thought he did so, when he regulated the colonies over and over again: he thought he did so, when he formed two general systems of revenue; one of port-duties, and
9300-552: The authority in England; and as soon as it was known to have its advocates here [in London], it was renounced by the colonies, and even by the Assembly of the Colony which first proposed it, as utterly impracticable." Indeed, the resolves of the Continental Congresses of both 1765 and 1774 declared that imperial representation was too impractical on the footing that "local and other circumstances, cannot properly be represented in
9424-580: The blockage of supply bills through the Senate. A money bill is specifically defined by Article 81 of the Constitution of Bangladesh . The President of Bangladesh can send back all bills passed by the Parliament for a review except a money bill. However, a money bill can be introduced to the Parliament only at the President's recommendation. Additionally, tax can only be levied by the Parliament. Although Parliament may pass money bills, under section 54 of
9548-571: The colonists a representation in the house of commons, the equity of their taxing the colonies, will be as clear as their power is at present of doing it without, if they please ... But if it was thought hard that charter privileges should be taken away by act of parliament, is it not much harder to be in part, or in whole, disfranchised of rights, that have been always thought inherent to a British subject, namely, to be free from all taxes, but what he consents to in person, or by his representative? This right, if it could be traced no higher than Magna Charta,
9672-520: The colonists had virtual representation , but the idea "found little support on either side of the Atlantic". The person who first suggested the idea of Parliamentary representation for the colonies appears to have been John Oldmixon , an English annalist of the era of Queen Anne or George I . It was afterwards put forward with approbation by Adam Smith , and advocated for a time, but afterwards rejected and strongly opposed, by Benjamin Franklin ." The 1768 Petition, Memorial, and Remonstrance , which
9796-463: The common counsel of our kingdom.” The English Parliament had controlled colonial trade and taxed imports and exports since 1660. By the 1760s, the Americans were being deprived of a historic right. The English Bill of Rights 1689 had forbidden the imposition of taxes without the consent of Parliament. Since the colonists had no representation in Parliament, the taxes violated the guaranteed Rights of Englishmen . Parliament initially contended that
9920-411: The commonwealth is dissolved, nor a subordinate legislative taken away without forfeiture or other good cause. Nor then can the subjects in the subordinate government be reduced to a state of slavery, and subject to the despotic rule of others ... Even when the subordinate right of legislature is forfeited, and so declared, this cannot affect the natural persons either of those who were invested with it, or
10044-415: The conditions on which they wish to continue as subjects ... The Legislature of this Kingdom cannot possibly depart from any part of its supremacy over the Colonies; but it is in the power of the Colonies to share in that supremacy. If they complain of being taxed without having the privilege of sending Members to Parliament, let them be represented. Nay, more: Let their representation increase in proportion to
10168-417: The constitution. ... [T]here is not a blade of grass growing in the most obscure corner of this kingdom, which is not, which was not ever, represented since the constitution began; there is not a blade of grass, which when taxed, was not taxed by the consent of the proprietor. ... I can never give my assent to any bill for taxing the American colonies, while they remain unrepresented; for as to the distinction of
10292-599: The declaratory act which was proposed to mollify the crown on the repeal of the Stamp Tax. After his first affirmation of "no taxation without representation" Camden was attacked by British PM Grenville, Chief Justice James Mansfield , Robert Henley, 1st Earl of Northington , and others. He responded: [T]he British Parliament have no right to tax the Americans. I shall not consider the Declaratory Bill now lying on your table; for to what purpose, but loss of time, to consider
10416-409: The desired representation in parliament. Perhaps it may be some time before this hopeful scheme can be brought to perfect maturity; although the author seems to be no wise aware of any obstructions that lie in the way of it. While Knox, Grenville and Burke were not necessarily opposed in principle to direct colonial representation in Parliament, Grenville nonetheless conjectured that Parliament retained
10540-430: The directly elected representatives of the lower house. Therefore, money bills are an exception to the general rule that for a bill to be enacted into a law, it has to be approved by both the lower and upper Houses of Parliament. Loss of supply in the lower house is conventionally considered to be an expression of the house's loss of confidence in the government, resulting in the government's fall. A supply bill in
10664-596: The dispute surrounding Parliamentary sovereignty, taxation, self-governance and representation. In the course of the 1760s and 1770s, William Pitt the Elder , Sir William Pulteney , and George Grenville , amongst other prominent Britons and colonial Americans, such as Joseph Galloway , James Otis Jr. , Benjamin Franklin, John Adams, the London Quaker Thomas Crowley, Royal Governors such as Thomas Pownall M.P., William Franklin , Sir Francis Bernard , and
10788-407: The equity and justice of a taxation of America by grant, and not by imposition; to mark the legal competency of the colony assemblies for the support of their government in peace, and for public aids in time of war; to acknowledge that this legal competency has had a dutiful and beneficial exercise, and that experience has shown the benefit of their grants, and the futility of Parliamentary taxation, as
10912-424: The expediency of the Stamp Act. He said if it was necessary, as ministers claimed, to tax the colonies, the latter should be permitted to elect some part of the Parliament, "otherwise the liberties of America, I do not say will be lost, but will be in danger." William Knox, an aide of George Grenville , pamphleteer and subsequent Irish Under-Secretary of State for the Colonies , received an appointment in 1756 to
11036-429: The fact were so or otherwise, the case is equally to be provided for by a competent sovereign power. But then this ought to be no ordinary power, nor ever used in the first instance. This is what I meant, when I have said, at various times, that I consider the power of taxing in Parliament as an instrument of empire, and not as a means of supply. The views of Knox, Grenville and Burke did not go unchallenged: William Pitt
11160-517: The government should not tax a populace unless that populace is represented in some manner in the government developed in the English Civil War , following the refusal of parliamentarian John Hampden to pay ship money tax. In the context of British taxation of its American colonies, the slogan "No taxation without representation" appeared for the first time in a headline of a February 1768 London Magazine printing of Lord Camden's "Speech on
11284-480: The immediate representatives of the people, for obtaining a redress of every grievance, and for carrying into effect every just and salutary measure. The clause resonated with a citizenry opposed to taxation without representation . Many scholars have written about the Origination Clause. Among the most widely influential was Joseph Story , who wrote in 1833 that the clause refers only to bills that levy taxes: [The clause] has been confined to bills to levy taxes in
11408-659: The impasse by using the Continuing Appropriations Act, 2014 , an insignificant bill that had originated in the House, which the Senate amended all the tax and appropriation measures to satisfy the formal requirements of the Originating Clause. Money bill In the Westminster system (and, colloquially, in the United States ), a money bill or supply bill is a bill that solely concerns taxation or government spending (also known as appropriation of money), as opposed to changes in public law. It
11532-586: The inhabitants, so far as to deprive them of the rights of subjects and of men — The colonists will have an equitable right notwithstanding any such forfeiture of charter, to be represented in Parliament, or to have some new subordinate legislature among themselves. It would be best if they had both ... [Furthermore, the right of every British subject is that the] supreme power cannot take from any man any part of his property, without his consent in person, or by representation. Otis simultaneously refuted, in The Rights of
11656-446: The laws of nature; it is more, it is itself an eternal law of nature; for whatever is a man's own, is absolutely his own; no man has a right to take it from him without his consent, either expressed by himself or representative; whoever attempts to do it, attempts an injury; whoever does it, commits a robbery; he throws down and destroys the distinction between liberty and slavery. Taxation and representation are coeval with and essential to
11780-463: The matter & object of the bill and the alteration or amendment offered to it." The Continental Congress then had a rule: "No new motion or proposition shall be admitted under color of amendment as a substitute for a question or proposition under debate until it is postponed or disagreed to." At the Virginia convention to ratify the Constitution , the delegate William Grayson was concerned that
11904-557: The matter before all of its judges (" en banc ") over a lengthy dissent authored by Judge Brett Kavanaugh . In 2013, during the United States federal government shutdown of 2013 and the United States debt-ceiling crisis of 2013 , the Republican -led House of Representatives could not agree on or pass an originating resolution to end the government crisis, as had been agreed, and so the Democratic -led Senate used Bill H.R. 2775 to resolve
12028-586: The one must necessarily govern. The greater must rule the less. But she must so rule it as not to contradict the fundamental principles that are common to both ... let the sovereign authority of this country over the colonies be asserted in as strong terms as can be devised, and be made to extend to every point of legislation whatsoever; that we may bind their trade, confine their manufactures, and exercise every power whatsoever, except that of taking their money out of their pockets without their consent." In his first speeches in Parliament, Lord Camden vigorously attacked
12152-521: The other of internal taxation. These systems supposed, or ought to suppose, the greatest attention to, and the most detailed information of, all their affairs. However, by contending for the American representation, he seems at last driven virtually to admit, that great caution ought to be used in the exercise of all our legislative rights over an object so remote from our eye, and so little connected with our immediate feelings; that in prudence we ought not to be quite so ready with our taxes, until we can secure
12276-443: The parliament: But they none of them have, and I hope never will have, a power given them, by the colonists, to act as representatives, and to consent to taxes; and if they should make any concessions to the ministry, especially without order, the provinces could not by that be considered as represented in parliament. Colonists said no man was represented if he were not allowed to vote. Moreover, even "If every inhabitant of America had
12400-429: The particulars of a Bill, the very existence of which is illegal, absolutely illegal, contrary to the fundamental laws of nature, contrary to the fundamental laws of this constitution? A constitution grounded on the eternal and immutable laws of nature; a constitution whose foundation and centre is liberty, which sends liberty to every individual who may happen to be within any part of its ample circumference. Nor, my Lords,
12524-423: The plea that the colonists, who had no vote, were unrepresented. "They are represented," he said, "by the same virtual representation as the greater part of England." However, the tradition of greater democracy amongst Americans gave impetus to the well-founded charge, voiced by Britons and colonists alike, that virtual representation was "sophistry" and "a mere Cob-web, spread to catch the unwary, and intangle [ sic ]
12648-449: The possession of their property, and not to be deprived of it: for, should the present power continue, there is nothing which they can call their own; or, to use the words of Mr. Locke, 'What property have they in that, which another may, by right, take, when he pleases, to himself?'" In an appearance before Parliament in January 1766, former Prime Minister William Pitt stated: The idea of
12772-454: The powers of Parliament limited may please themselves to talk of requisitions. But suppose the requisitions are not obeyed? What! shall there be no reserved power in the empire, to supply a deficiency which may weaken, divide, and dissipate the whole? We are engaged in war,—the Secretary of State calls upon the colonies to contribute,—some would do it, I think most would cheerfully furnish whatever
12896-584: The powers of the House of Lords in this regard. This is evident from the long title of the 1911 Act, which begins: "An Act to make provision with respect to the powers of the House of Lords in relation to those of the House of Commons ...". The reference to the National Loans Fund was inserted on 1 April 1968 by section 1(5) of the National Loans Act 1968 . For this purpose, the expression "Public Bill" does not include any bill for confirming
13020-557: The primary grievances of the American colonists for Great Britain . In short, many colonists believed that as they were not represented in the distant British parliament , any taxes it imposed on the colonists (such as the Stamp Act and the Townshend Acts ) were unconstitutional and were a denial of the colonists' rights as Englishmen since the Magna Carta . The firm belief that
13144-440: The privilege of a seat and voice in the parliament of Great Britain". In Britain, representation was highly limited due to unequally distributed voting constituencies and property requirements; only 3% of the population could vote and they were often controlled by local gentry. This meant that spurious arguments had come to be employed in Britain to try to explain away and cover up the iniquities in its political life. Therefore
13268-415: The proposal of an American representation from that quarter [of Grenville's]? It is proposed merely as a project of speculative improvement; not from the necessity in the case, not to add any thing to the authority of parliament: but that we may afford a greater attention to the concerns of the Americans, and give them a better opportunity of stating their grievances, and of obtaining redress. I am glad to find
13392-425: The purpose of revenue." James Madison explained: In many acts, particularly in the regulations of trade, the object would be twofold. The raising of revenue would be one of them. How could it be determined which was the primary or predominant one; or whether it was necessary that revenue shd: be the sole object, in exclusion even of other incidental effects. Regarding the decision to allow Senate amendments, some of
13516-471: The purse; that powerful instrument by which we behold, in the history of the British constitution, an infant and humble representation of the people, gradually enlarging the sphere of its activity and importance, and finally reducing, as far as it seems to have wished, all the overgrown prerogatives of the other branches of the government. This power over the purse, may in fact be regarded as the most compleat and effectual weapon with which any constitution can arm
13640-479: The reasoning was given by Theophilus Parsons during the convention in Massachusetts that ratified the Constitution. He said that otherwise, "representatives might tack any foreign matter to a money-bill, and compel the Senate to concur or lose the supplies." Madison believed that the difference between a permissible Senate amendment and an impermissible Senate amendment would "turn on the degree of connection between
13764-438: The requisite freehold," said Daniel Dulany , "not one could vote, but upon the supposition of his ceasing to become an inhabitant of America, and becoming a resident of Great Britain." The colonists and like-minded Britons insisted that representation was achieved only through an assembly of men actually elected by the persons they were intended to represent. The argument between the colonies and Parliament sought to resolve how
13888-416: The right of Parliament to impose Duties or Taxes on the Colonies, whilst they had no representatives in the House of Commons. This they did in a letter to their Agent in the summer of 1764 ... And in this letter they recommend to him a pamphlet, wrote by one of their members, in which there are proposals for admitting representatives from the Colonies to fit in the House of Commons ... an American representation
14012-476: The strict sense of the word, and are not bills for other purposes which may incidentally create revenue." Twin City Bank v. Nebeker, 167 U. S. 196, 202 (1897) (citing 1 J. Story, Commentaries on the Constitution § 880, pp. 610–611 (3d ed. 1858)). The Court has interpreted this general rule to mean that a statute that creates a particular governmental program and that raises revenue to support that program, as opposed to
14136-399: The strict sense of the words, and has not been understood to extend to bills for other purposes, which may incidentally create revenue. No one supposes, that a bill to sell any of the public lands, or to sell public stock, is a bill to raise revenue, in the sense of the constitution. Much less would a bill be so deemed, which merely regulated the value of foreign or domestic coins, or authorized
14260-513: The subjects within the realm. Are we not as really deprived of that right, by the parliament assessing us before we are represented in the house of commons, as if the King should do it by his prerogative? Can it be said with any colour of truth or justice, that we are represented in parliament? Otis, Jr., attended the Stamp Act Congress of 1765 along with other colonial delegates. The resolutions of
14384-418: The taxing powers of Congress are outside the scope of the Origination Clause if Congress "earmarks revenues to fund a program it creates." Regarding the latter view, Justice John Paul Stevens suggested in 1990 that its tendency was to "convert the Origination Clause into a formal accounting requirement.... " A bill that lowers taxes instead of raises taxes may still be a bill for raising revenue, according to
14508-425: The weak." The colonial insistence on direct representation as opposed to virtual representation has thus been seen by later commentators to have "usher[ed] in a profound political and social revolution, which rooted out most of the remaining traces of monarchic rule and feudalism inherited from the only partially complete English bourgeois revolution. The Americans carried through the bourgeois democratic revolution on
14632-431: Was amongst those who disputed that a Parliamentary right or power existed to levy "internal" taxes "for the purposes of raising a revenue" without the consent of actual representatives of the "Commons of America". "It is my opinion," Pitt said, "that this kingdom has no right to lay a tax upon the colonies." In 1764, the Massachusetts politician James Otis, Jr. , said that: When the parliament shall think fit to allow
14756-478: Was an essential part of the British Constitution , and that Virginia alone had the right to tax Virginians. This offer of actual imperial representation was likewise re-stated to the delegates of the colonies via the colonial agents in 1774, according to Connecticut-born Reverend Thomas Bradbury Chandler, in his publication A Friendly Address to All Reasonable Americans . In February 1775, Britain passed
14880-463: Was an old principle and meant that Parliament had to pass all taxes. At first, the "representation" was held to be one of land, but, by 1700, this had shifted to the notion that, in Parliament, all British subjects had a "virtual representation." "We virtually and implicitly allow the institutions of any government of which we enjoy the benefit and solicit the protection," declared Samuel Johnson in his political pamphlet Taxation No Tyranny . He rejected
15004-487: Was attacked in Britain by Charles Pratt, 1st Earl Camden , and his ally William Pitt, 1st Earl of Chatham . William Pitt argued in 1766 that the Commons of Britain ought not to tax the '"Commons of America" without gaining consent of their representatives in stating, "even under former arbitrary reigns, Parliaments were ashamed of taxing a people without their consent, and allowed them representatives. Why did [Grenville] confine himself to Chester and Durham? He might have taken
15128-418: Was the first that took any publick of the [Sugar] Act, and the first which ever took exception to the right of Parliament to impose Duties or Taxes on the Colonies, whilst they had no representatives in the House of Commons. This they did in a letter to their Agent in the summer of 1764, which they took care to print and publish before it was possible for him to receive it. And in this letter they recommend to him
15252-581: Was the product of the political crisis of 1909. The People's Budget of 1909 proposed by the House of Commons was rejected by the House of Lords. A government whose budget (that is the Finance Bill) is rejected can only resign or dissolve Parliament, because without money it is impossible to govern. The rejection of the Finance Bill in 1909 by the Lords prompted the then British government to initiate steps to curtail
15376-653: Was written by the Virginia House of Burgesses was likewise sent to Parliament, only to be ignored. The phrase had been used for more than a generation in Ireland. By 1765, the term was in use in Boston, and local politician James Otis was most famously associated with the phrase, "taxation without representation is tyranny ." In the course of the Revolutionary era (1750–1783), many arguments were pursued that sought to resolve
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