Standing committee of the US Senate; deals with matters relating to taxation, debts, trade, etc.
Senate Finance Committee
Standing committee
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Formed
| December 10, 1816
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Chair
| Ron Wyden
(
D
)
Since February 3, 2021
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Ranking member
| Mike Crapo
(
R
)
Since February 3, 2021
|
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|
Seats
| 27 members
|
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Political parties
| Majority
(14)
Minority
(13)
|
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|
Policy areas
| Children's Health Insurance Program
,
Customs
,
Deposit of public moneys
,
Duties
,
Federal trust funds
,
Healthcare finance
,
International trade
,
Mandatory spending
,
Medicare
,
Medicaid
,
National debt
,
Ports of entry
,
Public pensions
,
Revenue measures for territorial possessions
,
Revenue sharing
,
Social Security
,
Taxation
,
Temporary Assistance for Needy Families
,
Trade agreements
,
Unemployment insurance
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---|
Oversight authority
| Alcohol and Tobacco Tax and Trade Bureau
,
Bureau of the Fiscal Service
,
Centers for Medicare & Medicaid Services
,
Department of the Treasury
,
Federal Employees Retirement System
,
Federal Retirement Thrift Investment Board
,
Internal Revenue Service
,
Joint Committee on Taxation
,
Office of the United States Trade Representative
,
Social Security Administration
,
Treasury Inspector General for Tax Administration
,
United States Customs and Border Protection
|
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House counterpart
| House Committee on Ways and Means
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|
215 Dirksen Senate Office Building
Washington, D.C.
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|
www
.finance
.senate
.gov
|
|
|
|
The
United States Senate Committee on Finance
(or, less formally,
Senate Finance Committee
) is a
standing committee
of the
United States Senate
. The Committee concerns itself with matters relating to
taxation and other revenue
measures generally, and those relating to the
insular possessions
;
bonded debt
of the
United States
;
customs
, collection districts, and
ports of entry
and delivery; deposit of public moneys; general
revenue sharing
; health programs under the
Social Security Act
(notably
Medicare
and
Medicaid
) and health programs financed by a specific tax or trust fund; national social security;
reciprocal trade agreements
;
tariff
and
import
quotas, and related matters thereto; and the transportation of dutiable goods.
[1]
It is considered to be one of the most powerful committees in Congress.
[2]
History
[
edit
]
The Committee on Finance is one of the original committees established in the Senate. First created on December 11, 1815, as a
select committee
and known as the Committee on Finance and an [sic] Uniform National Currency, it was formed to alleviate economic issues arising from the War of 1812. On December 10, 1816, the Senate officially created the Committee on Finance as a
standing committee
. Originally, the Committee had power over tariffs, taxation, banking and currency issues and appropriations. Under this authority the committee played an influential role in the most heated topics of the era, including numerous tariff issues and the
Bank War
.
[3]
The committee was also influential in the creation of the
Department of Interior
in 1849.
[4]
Under the Chairmanship of
William Pitt Fessenden
, the committee played a decisive role during the
Civil War
. Appropriating all funds for the war effort as well as raising enough funds to finance the war through tariffs and the nation's first income tax. Additionally, the committee produced the Legal Tender Act of 1862, the nation's first reliance on paper currency.
[5]
In 1865 the
House of Representatives
created an
Appropriations Committee
to relieve the burden from the
Committee on Ways and Means
. The
Senate
followed this example by forming the
Senate Appropriations Committee
in 1867.
[3]
Despite the loss of one of its signature duties, the committee continued to play a prominent role in the major issues of the nation. The committee was at the center of the debate over the silver question in the latter half of the 19th Century. Passage of the
Bland?Allison Act
and the
Sherman Silver Purchase Act
were attempts to remedy the demand for silver, though the silver cause would eventually fail by the end of the century.
[6]
The committee also continued to play a role in the debate over income taxes. The repeal of the Civil War income taxes in the 1870s would eventually be raised in 1894 with the passage of a new income tax law. The Supreme Court's decision in
Pollock v. Farmers' Loan & Trust Co.
,
157
U.S.
429
(1895) ruled the income tax as unconstitutional, since it was not based on apportionment. The fight for an income tax finally culminated with the
Payne?Aldrich Tariff Act
of 1909. In order to pass the new tariff Senate leaders, including Chairman
Nelson Aldrich
, allowed for a Constitutional Amendment to be passed. Four years later the
16th Amendment
was officially ratified and in 1913 the nation's first peacetime income tax was instituted.
[7]
Around that same time the committee lost jurisdiction over banking and currency issues to the newly created
Committee on Banking and Currency
. The committee did gain jurisdiction over veterans’ benefits when it successfully passed the War Risk Insurance Act of 1917. The act shifted pensions from gratuities to benefits and served as one of the first life insurance programs created under the federal government.
[3]
The Finance Committee continued to play an increasingly important role in the lives of the nation's veterans. The committee helped consolidate the veteran bureaucracy by streamlining the various responsibilities into a Veterans' Bureau, which would ultimately become the Veterans' Administration. In 1924, the committee passed a
"Bonus Bill"
that compensated World War I veterans for their service.
[8]
This series of improved veteran benefits reached a crescendo in 1944 with the passage of the
Servicemen's Readjustment Act
. Senator
Bennett "Champ" Clark
, who served as the Chairman of the Subcommittee on Veterans, assured smooth sailing of the bill through the Senate. The bill not only ended the usual demands from returning veterans that had been seen in nearly every war the US had participated in, but also provided more generous benefits than veterans had previously received, including funds for continuing education, loans and unemployment insurance.
[9]
Not all Finance Committee legislation was as well received as the G.I. Bill. At the beginning of the
Great Depression
the committee passed the
Smoot?Hawley Tariff Act
. The act greatly increased tariffs and had a negative effect on the nation's economy. Following traditional economic practices the members of the committee, including Chairman
Reed Smoot
, felt that protection of American businesses was required in order to buoy them during the dire economic times. The effort backfired and the economic situation worsened. The Smoot-Hawley Tariff would eventually be replaced by the
Reciprocal Tariff Act
of 1934 which authorized the President to negotiate trade agreements. This act not only set up the trade policy system as it exists today but also effectively transferred trade making policy from the Congress to the President.
[10]
The committee also played an important role in two major acts created under the
New Deal
. The committee received jurisdiction over the
National Industrial Recovery Act
because of tax code changes in the bill. The new bureaucracy was President
Franklin D. Roosevelt
's attempt to stimulate the economy and promote jobs for unemployed Americans while also regulating businesses. The National Recovery Administration would ultimately fail as it lost public support, but the act served as a springboard for the
Wagner Act
and the
National Labor Board
.
[11]
Probably the largest and most lasting pieces of legislation shaped by the Finance Committee during the New Deal was the 1935
Social Security Act
. Once again, the committee received jurisdiction owing to the payroll taxes that would be enacted to pay for the new program. The act was the first effort by the federal government to provide benefits to the elderly and the unemployed, leading to enhanced economic welfare for many elderly Americans.
[12]
In 1981, a Senate Resolution required the printing of the History of the Committee on Finance.
[3]
Role
[
edit
]
The role of the Senate Committee on Finance is very similar to that of the
House Committee on Ways and Means
. The one exception in terms of authority is that the Finance Committee has jurisdiction over both Medicare and Medicaid, while the House Ways and Means Committee only has jurisdiction over Medicare. (The
House Energy and Commerce Committee
has jurisdiction over Medicaid.) The other difference in terms of power is that all revenue raising measures must originate in the House, giving the Ways and Means Committee a slight edge in setting tax policy.
In addition to having jurisdiction over legislation, the Committee on Finance has extensive oversight powers. It has authority to investigate, review and evaluate existing laws, and the agencies that implement them.
Jurisdiction
[
edit
]
In accordance of Rule XXV of the United States Senate, all proposed legislation, messages, petitions, memorials, and other matters relating to the following subjects are referred to the Senate Committee on Finance:
- Bonded debt of the United States, except as provided in the Congressional Budget Act of 1974;
- Customs, collection districts, and ports of entry and delivery;
- Deposit of public moneys;
- General revenue sharing;
- Health programs under the Social Security Act and health programs financed by a specific tax or trust fund;
- National social security;
- Reciprocal trade agreements;
- Revenue measures generally, except as provided in the Congressional Budget Act of 1974;
- Revenue measures relating to the insular possessions;
- Tariffs and import quotas, and matters related thereto; and,
- Transportation of dutiable goods.
[1]
Given its broad remit with regards to
taxation
,
mandatory spending
,
international trade
,
Social Security
,
Temporary Assistance to Needy Families
,
interest on the national debt
, and
healthcare finance
?including
Medicare
,
Medicaid
, and the
Children's Health Insurance Program
?the Senate Committee on Finance is arguably one of the most influential standing committees in either house of Congress.
[13]
[14]
A wide array of senators with differing policy interests seek membership on the Committee due to its broad role in setting
fiscal
,
tax
,
trade
,
health
, and
social policy
.
Members, 118th Congress
[
edit
]
Majority
[15]
|
Minority
[16]
|
- Ron Wyden
, Oregon,
Chairman
- Debbie Stabenow
, Michigan
- Maria Cantwell
, Washington
- Bob Menendez
, New Jersey
- Tom Carper
, Delaware
- Ben Cardin
, Maryland
- Sherrod Brown
, Ohio
- Michael Bennet
, Colorado
- Bob Casey
, Pennsylvania
- Mark Warner
, Virginia
- Sheldon Whitehouse
, Rhode Island
- Maggie Hassan
, New Hampshire
- Catherine Cortez Masto
, Nevada
- Elizabeth Warren
, Massachusetts
|
- Mike Crapo
, Idaho,
Ranking Member
- Chuck Grassley
, Iowa
- John Cornyn
, Texas
- John Thune
, South Dakota
- Tim Scott
, South Carolina
- Bill Cassidy
, Louisiana
- James Lankford
, Oklahoma
- Steve Daines
, Montana
- Todd Young
, Indiana
- John Barrasso
, Wyoming
- Ron Johnson
, Wisconsin
- Thom Tillis
, North Carolina
- Marsha Blackburn
, Tennessee
|
Subcommitteess
[
edit
]
Chairs
[
edit
]
Historical committee rosters
[
edit
]
117th Congress
[
edit
]
Majority
|
Minority
|
- Ron Wyden
, Oregon,
Chairman
- Debbie Stabenow
, Michigan
- Maria Cantwell
, Washington
- Bob Menendez
, New Jersey
- Tom Carper
, Delaware
- Ben Cardin
, Maryland
- Sherrod Brown
, Ohio
- Michael Bennet
, Colorado
- Bob Casey
, Pennsylvania
- Mark Warner
, Virginia
- Sheldon Whitehouse
, Rhode Island
- Maggie Hassan
, New Hampshire
- Catherine Cortez Masto
, Nevada
- Elizabeth Warren
, Massachusetts
|
- Mike Crapo
, Idaho,
Ranking Member
- Chuck Grassley
, Iowa
- John Cornyn
, Texas
- John Thune
, South Dakota
- Richard Burr
, North Carolina
- Rob Portman
, Ohio
- Pat Toomey
, Pennsylvania
- Tim Scott
, South Carolina
- Bill Cassidy
, Louisiana
- James Lankford
, Oklahoma
- Steve Daines
, Montana
- Todd Young
, Indiana
- Ben Sasse
, Nebraska
- John Barrasso
, Wyoming
|
- Subcommittees
116th Congress
[
edit
]
Majority
|
Minority
|
- Chuck Grassley
, Iowa,
Chairman
- Mike Crapo
, Idaho
- John Cornyn
, Texas
- John Thune
, South Dakota
- Richard Burr
, North Carolina
- Rob Portman
, Ohio
- Pat Toomey
, Pennsylvania
- Tim Scott
, South Carolina
- Bill Cassidy
, Louisiana
- James Lankford
, Oklahoma
- Steve Daines
, Montana
- Todd Young
, Indiana
- Ben Sasse
, Nebraska
|
- Ron Wyden
, Oregon,
Ranking Member
- Debbie Stabenow
, Michigan
- Maria Cantwell
, Washington
- Bob Menendez
, New Jersey
- Tom Carper
, Delaware
- Ben Cardin
, Maryland
- Sherrod Brown
, Ohio
- Michael Bennet
, Colorado
- Bob Casey
, Pennsylvania
- Mark Warner
, Virginia
- Sheldon Whitehouse
, Rhode Island
- Maggie Hassan
, New Hampshire
- Catherine Cortez Masto
, Nevada
|
- Subcommittees
Source
[20]
115th Congress
[
edit
]
Majority
|
Minority
|
- Orrin Hatch
, Utah,
Chairman
- Chuck Grassley
, Iowa
- Mike Crapo
, Idaho
- Pat Roberts
, Kansas
- Mike Enzi
, Wyoming
- John Cornyn
, Texas
- John Thune
, South Dakota
- Richard Burr
, North Carolina
- Johnny Isakson
, Georgia
- Rob Portman
, Ohio
- Pat Toomey
, Pennsylvania
- Dean Heller
, Nevada
- Tim Scott
, South Carolina
- Bill Cassidy
, Louisiana
|
- Ron Wyden
, Oregon,
Ranking Member
- Debbie Stabenow
, Michigan
- Maria Cantwell
, Washington
- Bill Nelson
, Florida
- Bob Menendez
, New Jersey
- Tom Carper
, Delaware
- Ben Cardin
, Maryland
- Sherrod Brown
, Ohio
- Michael Bennet
, Colorado
- Bob Casey
, Pennsylvania
- Mark Warner
, Virginia
- Claire McCaskill
, Missouri
|
References
[
edit
]
- ^
a
b
"Jurisdiction"
. The United States Senate Committee on Finance. 1887
. Retrieved
May 31,
2019
.
This article incorporates text from this source, which is in the
public domain
.
- ^
Faler, Brian (November 2, 2014).
"The rise of Ron Wyden"
.
Politico
. Retrieved
June 11,
2023
.
- ^
a
b
c
d
"History of the Committee on Finance United States Senate"
. Government Printing Office.
- ^
Simms, Henry Harrison. Life of Robert M.T. Hunter: A Study in Sectionalism and Secession. Richmond: William Byrd Press, 1935
- ^
Jellison, Charles A. Fessenden of Maine, Civil War Senator. Syracuse: Syracuse University Press, 1962.
- ^
Sherman, John. Recollections of Forty Years in The House, Senate, and Cabinet: An Autobiography. 2 vols. 1895. Reprint. New York: Greenwood Press, 1968.
- ^
Stephenson, Nathaniel W. Nelson W. Aldrich: A Leader In American Politics. 1930. Reprint. New York: Kennikat Press, 1971.
- ^
The Provision of Federal
Benefits for Veterans. House Committee Print 171, 84th Congress, 1st Session, December 28, 1955
- ^
Bennett, Michael. When Dreams Come True: The G.I. Bill and the Making of Modern America. Washington: Potomac Books, Inc., 1999.
- ^
Dobson, John. Two Centuries of Tariffs: The Background and Emergence of the U.S. International Trade Commission. Washington:U.S. Government Printing Office, 1976.
- ^
Ratner, Sidney. Taxation and Democracy in America. Octagon Books, 1980.
- ^
Swain, Martha H. Pat Harrison: The New Deal Years. Jackson: University Press of Mississippi, 1978.
- ^
"Powerful Senate committee invites pharma executives to testify"
.
Reuters
. February 4, 2019 – via www.reuters.com.
- ^
"Senate Committee on Finance"
.
GovTrack.us
.
- ^
S.Res. 30
(118th Congress)
- ^
S.Res. 31
(118th Congress)
- ^
"Wyden, Crapo Announce Senate Finance Subcommittee Assignments"
.
United States Senate Committee on Finance
. February 9, 2023
. Retrieved
March 9,
2024
.
- ^
Chaired a special session of the 29th Congress. His ten-day chairmanship of the committee is the shortest on record.
- ^
Morrill holds the longest non-continuous service as Chairman, at eighteen years. Russell Long holds the longest continuous service as chairman, at sixteen years.
- ^
"The United States Senate Committee on Finance"
.
www.finance.senate.gov
. Retrieved
February 11,
2017
.
External links
[
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]