Baucus prepares for tax overhaul hearings

By Dow Jones Newswires
Posted Feb. 8 at 10:15 a.m.

Senate Finance Committee Chairman Max Baucus (D-Mont.) said he plans a series of hearings to lay the groundwork for a tax code overhaul.

A Senate aide said Baucus has tentatively blocked off every Tuesday the Senate is in session in March and April, for the hearings.

During a Tuesday committee meeting on renewing funding for aviation programs, Baucus said the topics for the hearings are still taking shape.

But he indicated that the Finance panel’s work will not be limited to corporate taxes and will delve into proposals to improve the tax code for individuals as well.

President Barack Obama called for a lower corporate tax rate, to be paid for by repealing existing tax breaks, in his State of the Union address. He also said he will work with Congress on simplifying the individual tax code.

Baucus signaled he is not ready yet to begin drafting legislation, but instead plans an extended process of study and review.

“I do expect this will take a little time. I do not expect this will be marked up quick,” Baucus said. “I want to have strong, vigorous, constructive hearings and see what develops.”

Topics that could be covered in hearings, Baucus said, include: the individual alternative minimum tax, the complexity of the current tax code, the host of tax breaks known as “tax expenditures” and U.S. treatment of corporations’ overseas profits.

Obama has not put forward specific proposals on what a corporate tax overhaul would look like. U.S. Rep. Dave Camp (R-Mich.), chairman of the House Ways and Means Committee, has also begun holding hearings to explore a tax code re-write.

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