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Baucus Move to China Could Derail Tax Reform

Tax reform might be in trouble—or at least delayed. Sen. Max Baucus, the head of the Senate’s tax-writing committee, is expected to be nominated as the next ambassador to China. His departure could put the brakes on tax code revisions planned for next year.

Tax reform might be in trouble—or at least delayed. Sen. Max Baucus, the head of the Senate’s tax-writing committee, is expected to be nominated as the next ambassador to China. His departure could put the brakes on tax code revisions planned for next year.

Senate Finance Committee Chairman Max Baucus (D-MT) is expected to be nominated by President Obama to serve as the next ambassador to China, a move that congressional insiders said could put an end to any plans to overhaul the tax code in 2014.

Baucus, who has already announced that he will not run for reelection next year, began informing some of his staff and colleagues in the Senate yesterday about the upcoming nomination, according to Politico.

The timing of the nomination remains unclear, and White House officials have not yet commented publicly. Baucus’s nomination would be considered by the Senate Foreign Relations Committee and, if he leaves before his term ends, would open up the leadership spot on the Senate Finance Committee. Sen. Jay Rockefeller (D-WV) is next in line to chair the panel but he is retiring at the end of the year, meaning the likely heir apparent is Sen. Ron Wyden (D-OR). An early departure by Baucus would also allow Montana Gov. Steve Bullock (D) to appoint Lt. Gov. John Walsh (D) to the vacant seat.

Over the past year, Baucus has been working closely with House Ways and Means Committee Chairman Dave Camp (R-MI) to advance a comprehensive tax reform bill, but this latest news— coupled with the challenges both tax-writing committees face in moving tax reform in an election year—have many analysts doubtful about the prospects for an overhaul next year.

Camp is also set to step down from his Ways and Means post due to committee term limits, and Rep. Paul Ryan (R-WI) said this week that he plans to seek the chairmanship of Ways and Means in 2015. Ryan has publicly stated his firm commitment to advancing tax reform as well, but deep divides remain between Democrats and Republicans over such fundamental questions as whether to seek additional revenue in any tax code rewrite.

Sen. Max Baucus (D-MT), center, has been working on a tax reform bill for the past year. (Brendan Smialowski/Getty Images/Thinkstock)

Chris Vest, CAE

By Chris Vest, CAE

Chris Vest, CAE is vice president, corporate communications and public relations at ASAE. MORE

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