1986 - The Exon Library

evenue must originate in the House of Representatives. The
Conrail sale would affect revenues since it would grant a
limited immunity from taxation, therefore making it
unconstitutional. The Senate Commerce Committee realized
that there would be a constitutional problem with the bill
and added a new provision to the substitute amendment that
attempts to resolve the issue. It still will not satisfy
the Constitutional test, however, and the House surely will
kill the Conrail sale bill when it is considered there.
Opponents of the point of order explained that the Conrail
sale bill could not be considered a revenue-raising
measure. The only tax loss that would occur upon enactment
would result from the consolidated tax returns being filed
between a taxpaying corporation and one that would be
generating tax losses. Actual tax laws would not be
altered. Furthermore, the Supreme Court has spoken on this
issue in the case of U.S. v. Norton stating that the
limitation in the Constitution for revenue-raising bills to
originate in the House is confined to bills that levy taxes
and cannot be extended to bills which incidentally create
revenues.