Max Baucus: “The British statesman Benjamin Disraeli said that, ``in politics, a week is a long time.'' The past week or so is a good…”

“The British statesman Benjamin Disraeli said that, ``in politics, a week is a long time.'' The past week or so is a good example. On the tax bill, we have gone from a handshake deal, through a day-long markup in the Finance Committee, through 43 votes on the Senate floor, and then through a brief but difficult conference that, more than once, veered close to a breakdown. It is almost always difficult to reconcile two different bills in conference. That was the case here. The stakes were high, time was short, and some of the differences were profound. But I am delighted to join our chairman, Senator Grassley, in announcing that we have a conference agreement that embodies a solid, balanced, bipartisan compromise. Let me describe the key elements of the compromise. The centerpiece of the Senate bill was the immediate creation of a 10 percent rate, to cover the first $12,000 of taxable income. This benefits low and middle income taxpayers the most. And it provides a boost to the economy. The conference report adopts this provision lock, stock, and barrel. Another key element of the Senate bill was the set of provisions geared to low and middle income families. Here, again, we did well. The conference report expands, and simplifies, the earned income tax credit.”