Proposed tax laws start the formal tax legislation process as a bill. This bill must follow specific steps outlined by the U.S. Constitution before, or even if, it is to become a law. Use Info Sheet

1: How Taxes Evolve to review the series of steps in the formal tax legislation process.

Worksheet Solutions Tax Legislation Process
Theme 1: Your Role as a Taxpayer
Lesson 2: How Taxes Evolve
Key Terms
formal tax legislation process—The strict Constitutional steps a proposed tax bill must pass
through before it becomes law.
informal tax legislation process—Individuals and interest groups expressing and promoting
their opinions about tax legislation.
Summary
A proposed tax law, called a bill, follows specific steps through both houses of Congress. This
formal tax legislation process is described in the U.S. Constitution. The informal tax
legislation process is the means by which all citizens, acting individually or as representatives
of groups, try to affect legislation by making their views known to legislators.
Activity 1
Use the word list to complete the flowchart below, showing the steps taken—in the correct
order—for enacting a federal tax law. Some have been filled in for you.
House/Senate Compromise bill Veto override passes
Full Senate President signs bill
President vetoes bill Veto override fails
Joint Conference Committee House Ways and Means Committee
Understanding Taxes