April 26,2007

Baucus Comment on Tax Provisions in Supplemental Spending Legislation

MEMORANDUM

To: Reporters and Editors
From: Carol Guthrie for Finance Committee Chairman Max Baucus (D-Mont.)
Re: Tax package in supplemental spending legislation

Finance Committee Chairman Baucus issued comment today following Senate passage of
emergency spending legislation, including funding for America’s troops in Iraq and $4.84 billion in tax incentives for America’s small businesses. The president has pledged to veto this legislation. The White House has reportedly pledged to oppose the small business tax relief package as stand-alone legislation.

From Chairman Baucus:

“The small business tax relief contained in the supplemental spending bill would do good things
for America’s small businesses, from giving employers credit for hiring disadvantaged workers to helping family-owned businesses get the full tax benefits they deserve. Rather than grousing
about what’s not in this tax package, Congress should jump at the opportunity to help small
businesses and to close tax loopholes now in legislation that can pass both chambers, and work
together to look for additional opportunities. I’ve already pledged to revisit additional provisions, such as restaurant and retail depreciation and a number of tax loophole closures, in short order.

“We all know the President plans to veto this bill. But it’s particularly disappointing that the White House is already promising to oppose this package of small business tax relief if it moves forward as stand-alone legislation. Bottom line, the White House shouldn’t stand in the way of steps to help America’s small businesses. I might also note that we included three of the administration’s proposals to help collect unpaid taxes in this package, as well. This won’t be the last tax bill of 2007, and I believe we should take the first opportunity to help the small business owners who make our economy strong.”

A summary of the Baucus-Rangel tax agreement in the supplemental spending bill can be found on the Finance Committee website.

###