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Proposals to amend the tax laws were ruled out of order by legal advisers.

I can't find the definition of "rule something out of order" in dictionaries. What is it made up of? (e.g. "rule out" + "out of order") or Is it just a set phrase?

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Proposals to amend the tax laws were ruled out of order by legal advisers

In this sentence "rule" simply means an official decision. So we can understand the sentence as a whole to mean proposals to amend the tax laws were officially decided to be out of order by legal advisers. To answer your question, it is made up of "rule" and "out of order".

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out of order is an idiom

Sense 2 defines it as

not following the formal rules of a meeting, court session, etc.

At the last town council meeting, her proposal was ruled out of order by the mayor.

OP's example

Proposals to amend the tax laws were ruled out of order by legal advisers.

means the proposals were deemed not following the formal rules required.

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Your original sentence was

Proposals to amend the tax laws were ruled out of order by legal advisers.

It may be easier to understand if rearranged and with some dropped or expository words reinserted:

The legal advisers made a ruling (a binding decision) that the proposals to amend the tax laws were [not allowed to be submitted at that time according to parliamentary procedure, and thus were] out of order.

For a bit of context, Roberts' Rules of Order is a famous book of processes and procedures for running meetings in an orderly (smooth and harmonious) manner. Someone who attempts to speak on a matter unrelated to the business at hand, or during time allocated to another person, may be deemed to be "out of order" and not permitted to speak on that matter at that time.

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