Sen. Baucus seeks to ensure Finance panel's involvement in 'fiscal cliff' talks

Senate Finance Committee Chairman Max BaucusMax Sieben BaucusClients’ Cohen ties become PR liability Green Party puts Dem seat at risk in Montana Business groups worried about Trump's China tariffs plan MORE, who watched President Obama and congressional leaders bypass his panel several times, wants a seat at the table for talks about the “fiscal cliff.”

Colleagues say Baucus (D-Mont.) wants to make sure his committee does not get pushed off its turf in the mad dash to strike a deficit-reduction deal. Such an agreement will likely include tax increases and entitlement reforms, two areas squarely within Baucus’s jurisdiction. 

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With only six weeks left before the Bush-era tax rates expire and automatic spending cuts are due to take effect, some lawmakers fear that the fiscal-cliff talks might take place exclusively among party leaders. 

Sen. Chuck GrassleyCharles (Chuck) Ernest GrassleyOn The Money — Sponsored by Prudential — Markets roiled by Trump's new tariff threat | Trump lashes out at Canada over trade | Warren looks to block Trump pick for consumer agency The Hill's Morning Report — Sponsored by PhRMA — Defiant Trump meets with House GOP amid border blowback Republican senator calls for face-to-face with EPA’s Pruitt MORE (R-Iowa), a former chairman of the Finance Committee, said Baucus wants to make sure he and his colleagues are not shut out from what could be the biggest tax and entitlement reform package of a generation.

“I think he’s coming from a point of view that the committee ought to function, and unless he’s aggressive it won’t,” Grassley said. 

Grassley said Baucus and Sen. Orrin HatchOrrin Grant HatchGOP senators introduce bill to prevent family separations at border Overnight Defense: States pull National Guard troops over family separation policy | Senators question pick for Afghan commander | US leaves UN Human Rights Council Senate GOP tries to defuse Trump border crisis MORE (Utah), the ranking Republican on Finance, should be “very much involved.”

Speaker John BoehnerJohn Andrew BoehnerZeal, this time from the center Juan Williams: The GOP's deal with the devil Hillicon Valley: Trump hits China with massive tech tariffs | Facebook meets with GOP leaders over bias allegations | Judge sends Manafort to jail ahead of trial | AT&T completes Time Warner purchase MORE (R-Ohio) has tapped House Ways and Means Committee Chairman Dave Camp (R-Mich.) to sit in on daily management meetings with Budget Committee Chairman Paul RyanPaul Davis RyanTrump vows to stand with House GOP '1,000 percent' on immigration Heckler yells ‘Mr. President, f--- you’ as Trump arrives at Capitol Hoyer: GOP centrists 'sold out' Dreamers MORE (R-Wis.) and Energy and Commerce Committee Chairman Fred Upton (R-Mich.) to review fiscal-cliff proposals. 

But Senate Majority Leader Harry ReidHarry Mason ReidAmendments fuel resentments within Senate GOP Donald Trump is delivering on his promises and voters are noticing Danny Tarkanian wins Nevada GOP congressional primary MORE (D-Nev.) has yet to publicly carve out a special role for Baucus or any Senate committee heads. 

However, Reid has made a special effort to cultivate a relationship with Baucus, after Reid’s predecessor, former Democratic Leader Tom Daschle (S.D.), clashed fiercely with the powerful committee chairman. 

“Sen. Reid considers Sen. Baucus’s input invaluable and will be relying on him as he has in similar debates in the past,” said Adam Jentleson, Reid’s spokesman. 

Baucus convened a meeting with members of the Finance Committee late last week to discuss how they will have a say in the deal.

“I think there is a recognition that if you don’t have the committee’s involvement, it’s going to be more difficult to get it done,” said Sen. Ben CardinBenjamin (Ben) Louis CardinCommunity development impact remains clear with NMTC post-tax reform Dem sen: ‘Difficult to understand’ Trump’s treatment of allies Dem sen: No military option in North Korea ‘without extreme risks’ MORE (D-Md.), a member of the Finance panel. “We understand the responsibilities of our leaders, the president and Speaker and majority leader and minority leaders — we understand that. 

“But without having the knowledge and working participation of the committee members of jurisdiction, it’s going to make it more difficult to get it done,” he said. 

Another Finance Committee member with relevant expertise is Sen. Ron WydenRonald (Ron) Lee WydenHillicon Valley: Verizon, AT&T call off data partnerships after pressure | Tech speaks out against Trump family separation policy | T-Mobile, Sprint make case for B merger AT&T, Verizon say they'll stop sharing location data with third-party brokers The Memo: Child separation crisis risks ‘Katrina moment’ for Trump MORE (D-Ore.), who has teamed up with Sen. Mark BegichMark Peter BegichFormer Alaska senator jumps into governor race Overnight Energy: Trump directs Perry to stop coal plant closures | EPA spent ,560 on customized pens | EPA viewed postcard to Pruitt as a threat Perez creates advisory team for DNC transition MORE (D-Alaska), Sen. Dan CoatsDaniel (Dan) Ray CoatsGOP senator places hold on Trump counterintelligence nominee Civil liberties groups press Trump administration on NSA call record collection Trump’s ‘Syraqistan’ strategy is a success — and a failure MORE (R-Ind.) and former Sen. Judd Gregg (R-N.H.) to offer the only major bipartisan tax reform plan in the last two decades. 

Various pieces of Wyden’s bill could serve as a template for tax reform discussions in Congress’s lame-duck session. He and Coats have found common ground on how to treat the tricky issue of capital gains taxes by creating a new 35 percent exclusion and progressive rate structure for dividend and capital gains income. Wealthy individuals who earn most of their income from capital gains could see their tax rate jump to about 22.5 percent from the current 15 percent.

“We spent a lot of time working with groups all across the spectrum, from retirees to various funds, and we got a pretty good reaction to that,” Wyden said. “I made that available to various members of the leadership.”

Inviting greater participation from Baucus and rank-and-file members offers rewards and risks. The members of the Finance panel have policy expertise and an array of ideas that could be useful for reaching a solution. But as more lawmakers get involved, the negotiations grow progressively unwieldy and time-consuming. 

Important negotiations have been taken out of Baucus’s hands at several points since Obama took office in 2009. 

Reid took over the crafting of the 2010 Affordable Care Act after Baucus spent months working toward a bipartisan agreement with Sens. Olympia Snowe (R-Maine), Mike EnziMichael (Mike) Bradley EnziHouse panel to mark up 2019 budget Overnight Defense: Top general defends Afghan war progress | VA shuffles leadership | Pacific Command gets new leader, name | Pentagon sued over HIV policy Senate GOP urges Trump administration to work closely with Congress on NAFTA MORE (R-Wyo.) and Grassley.

In 2011, Reid appointed Baucus to a group of negotiators headed by Vice President Biden tasked with reaching an agreement to raise the debt limit. But after the group hit a wall, Reid took over the job and hammered out the Budget Control Act in a marathon session with BoehnerJohn Andrew BoehnerZeal, this time from the center Juan Williams: The GOP's deal with the devil Hillicon Valley: Trump hits China with massive tech tariffs | Facebook meets with GOP leaders over bias allegations | Judge sends Manafort to jail ahead of trial | AT&T completes Time Warner purchase MORE, Senate Republican Leader Mitch McConnellAddison (Mitch) Mitchell McConnellWarren on family separation policy: Trump is ‘taking America to a dark and ugly place’ Senate GOP tries to defuse Trump border crisis Schumer rejects GOP proposal to address border crisis MORE (Ky.), House Democratic Leader Nancy Pelosi (Calif.) and senior advisers to the president. 

And Reid took tax bills straight to the Senate floor on multiple occasions, skipping the Finance panel. Those measures include legislation to end tax breaks for oil and gas companies, to extend the payroll tax holiday and to set a minimum 30 percent tax rate for wealthy earners.

Sean Neary, Baucus’s spokesman, expressed confidence his boss would play a central role in deliberations over the fiscal cliff. 

“I think it’s inevitable, with his position and committee and expertise, he’s part of the equation no matter what,’ Neary said. “There are a lot of members who want to be helpful, as opposed to sitting on the sideline. Sen. Baucus has his own ideas as well. 

“I’m confident he’ll be part of any team to work to find a solution to the fiscal cliff,” he said.