Baucus: One-year extension of Bush tax cuts a ‘bad idea’

“That creates uncertainty,” he told reporters. “People want more certainty in their lives; [to] know what to buy, what to sell, what to invest. And this one-year extension idea is basically kicking the can down the road to avoid making difficult decisions and creates more problems than it solves by creating more uncertainty.” 

Baucus later said that a two-year extension of all the Bush tax cuts is “almost as bad.” 

The Finance chairman would like to see a permanent extension of the middle-class tax cuts, he said, along with a “couple of years” of alternative minimum tax relief. 

He said he would also like to see a fix for the estate tax and that 2009 levels are “in the ballpark.” 

“I don’t want to say exactly, we haven’t discussed it enough to know,” he said. 

A 35 percent estate-tax rate is also in the ballpark, but not near home plate. 

“That’s in the outfield,” Baucus said. “It’s still in the park, but it’s getting close to the exit. But it is in the ballpark.” 

The senator also said the chamber will take another stab at modifying the 1099 rule requiring companies to report all purchases over $600 to the IRS. 

“”[It’s] very possible and very probable that we do a 1099 this year,” he said, adding, “We will deal with 1099.” 

Baucus would not say how all the tax issues would be resolved, which includes extenders.

“We need to do these things,” he said. “How we do it is less important so long as it’s done.”

Baucus also plans to begin tackling tax reform before the election. 

“I think we might have [a hearing] in a couple of weeks,” he said, adding that it would not focus on a particular piece of legislation, but instead would talk about “tax reform generally.”