Final answer:
Committee Reports explain proposed tax law changes and their reasons. They are not published in the Internal Revenue Bulletin nor produced by the Treasury Department; they are typically prepared by Congressional committees and published in the Congressional Record.
Step-by-step explanation:
Committee Reports in the Context of Tax Law
Regarding committee reports related to tax legislation, the correct statement is that they explain the elements of proposed tax law changes and the reasons for those changes. Committee Reports are essential in understanding the legislative intent and provide context and detailed explanations about the provisions of a proposed law. These reports are usually prepared by the tax-writing committees within Congress, which are the House Ways and Means Committee and the Senate Finance Committee, not the Treasury Department, and they are typically published in the Congressional Record, not the Internal Revenue Bulletin.
In the historical context of the American colonies, the colonists made a very clear distinction between internal and external taxation, the purpose of taxes to regulate trade versus those designed to raise revenue, and the type of representation in the British Parliament, specifically actual versus virtual representation. These distinctions were among the foundational arguments that led to the eventual demand for independence and were thoroughly debated during the period leading to the American Revolution.