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The Committee on Ways and Means is one of the many committees that exists within the United States House of Representatives, although it is widely considered to be one of the most important due to its primary role. Ways and Means is the chief authoring committee of tax-related policy and regulation within the U.S. government. Members of the committee are not permitted to sit on other committees, unless their party leader grants them a waiver allowing them to do so. Otherwise, the situation is seen as offering significant potential for strong conflicts of interest, and is generally not seen as being necessary.
In addition to taxation and tariffs, the committee has jurisdiction over many federal programs, including Social Security, unemployment, and the enforcement of child support laws. Here are five of the primary functions of the Committee on Ways and Means:
Taxation and Tariffs
Ways and Means is the House of Representatives counterpart to the United States Senate’s Committee on Finance. Either body requires that all bills related to taxation pass through their respective committees. Of the two bodies, Ways and Means is the more influential, because the U.S. Constitution requires that all bills relating to taxation originate within the House of Representatives. By the time such a bill reaches the senate, and the Committee on Finance, it has already passed through Finance’s counterpart in the House.
Social Security Regulation
The United States federal government maintains the Old-Age, Survivors, and Disability Insurance program, which is more commonly known as “Social Security.” Because the Ways and Means Committee has charge over most financial matters, and its members are selected on such merits, they also manage the regulation of the OASDI program, and are tasked with implementing reforms when such is needed. At present, Social Security is collected by the IRS, before being entrusted to a pair of trust funds: one for the elderly and survivors, and one for disability insurance. Recent focus by the Ways and Means Committee has fallen on an investigation into allegations that Social Security under-performs for low- and middle-income Americans.
Unemployment Benefits
Among the committee’s responsibilities is unemployment compensation, which constitutes a large portion of the total federal spending on public welfare. The committee is responsible for drafting and submitting proposed reforms to the system. The responsibility is complicated, due to the fact that unemployment insurance in the U.S. is a joint federal-state program, and different states manage their side of the responsibility in different ways. Employers pay both state and federal unemployment taxes to fund the program.
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Medicare
A frequent news item in recent years, Medicare is a national health insurance program. It provides health insurance to elderly Americans, and to younger individuals with certain disabilities. There is a lot of attention being paid to Medicare for a variety of reasons: though it has low overhead, it is overall an expensive program due to the number of individuals who are covered. It is also being upheld as the model for a proposed national health insurance program, which would apply to all American citizens. The Ways and Means Subcommittee on Health oversees Medicare regulation and reform.
Foster Care and Adoption
Ways and Means oversees more than the enforcement of child support laws; they also oversee foster care and adoption services. In particular, the committee provides funding for adoption programs that place children with special needs, as well as for payments to families that foster children with similar needs. The committee allocates several billion dollars in annual funding for services related to foster care and adoption.
The broad range of responsibility placed on the shoulders of the Committee on Ways and Means ultimately comes down to expenses. Its long history, current and previous membership, and the gradual escalation of its responsibilities are further elaborated upon by the U.S. congressional website.