Baucus To Chair Senate Finance Committee

by Mike Godfrey, Tax-News.com, Washington

17 November 2006

Montana Democrat Max Baucus has been officially earmarked to take over the tax-writing Senate Finance Committee when the Congress convenes in January, although his appointment is expected to bring continuity rather than change as regards the important issues facing the committee.

The Finance Committee has jurisdiction over all taxes and revenue, Medicare and Medicaid, Social Security, welfare, and international trade policy, and is arguably the most influential panel in Congress.

However, Baucus has established a good working relationship with the present incumbent at the head of the committee, Chuck Grassley, who now becomes its senior Republican, and they agreed on many issues such as tax cuts, cracking down on corporate tax shelters and closing the tax gap. His appointment therefore is not expected to herald a radical shift in emphasis by the committee.

Baucus voted in favor of President Bush's 2001 tax cut package and has swum against mainstream Democrat opinion by supporting Republican efforts to repeal the estate tax.

He is also an advocate of dismantling agricultural barriers, which he says will help farmers in his own state.

Baucus's promotion follows the regaining of Senate control by the Democrats, who hold the chamber by a slim 51-49 majority following the most recent mid-term elections. He also held the post in 2001 and 2002 before Republicans regained control of the Senate.

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