Max Baucus

Mr. BAUCUS

Mr. BAUCUS. Mr. President, in connection with H.R. 4839, the Tax Technical Corrections Act of 2007, the nonpartisan Joint Committee on Taxation is making available to the public a document that contains a technical explanation of the bill. This technical explanation expresses the Senate Finance Committee's understanding of the tax and other provisions of the bill and serves as a useful reference in understanding the legislative intent behind this important legislation. I ask unanimous consent to have this technical explanation printed in the Record.

Mr. BAUCUS

Mr. BAUCUS. Mr. President, I want to honor Mr. Patrick G. Heck, who is retiring this month following 23 years of dedicated Federal service. Pat has served the Finance Committee and all Americans extremely well during his eight years as tax counsel for the U.S. Senate Committee on Finance, and as chief tax counsel for the past 4 years. As a college freshman, Pat began his congressional career as a file clerk for his Congressman. Throughout his distinguished public service career, Pat's tireless dedication has earned the respect of his peers, family, and community. Pat commands the respect of both Democratic and Republican staff throughout the Senate. Pat is a graduate of the Georgetown University Law Center, with an LL.M. in taxation. He received his J.D. from the University of Toledo College of Law, and is a graduate of American University, with degrees in political science and economics. Prior to joining the Finance Committee staff, Pat served as assistant counsel on the Select Revenue Subcommittee of the House Committee on Ways and Means. While there, Pat was responsible for leading hearings on intercompany transfer pricing, Internal Revenue Service collection and enforcement. Before that, he was an attorney with the Internal Revenue Service's Office of Chief Counsel. I know the members of the Senate Finance Committee join me in gratitude for Pat's sage advice on tax policy matters. His efforts have helped to shape the legislative agenda for tax administration and tax reform. He cares deeply about these issues and the effect they have on hard-working Americans. With his ever-meticulous style, Pat has helped me to delve into the important issue of the ``tax gap,'' energy tax incentives, tax cuts for individuals and small businesses, and taxpayer rights. Pat also helped me develop the idea of extending the time period during which Americans could make tax-exempt contributions to help victims of the tsunami disaster in 2005. This change helped facilitate a floodgate of tax-exempt contributions for these victims. Mr. President, I ask my colleagues to join me in thanking Pat Heck for his many years of outstanding service and in wishing him well for the future.

Mr. BAUCUS

Mr. BAUCUS. Mr. President, today, we face a major setback to the effort to advance American exports and freer international trade. Some on the other side of the aisle are threatening to kill trade adjustment assistance, or TAA. Trade adjustment assistance provides training, health, and income benefits to trade-displaced workers. It has been integral to America's trade policy since 1962. That is when President Kennedy first created the program. TAA has helped America's workers to improve their competitiveness. It has helped workers to retrain and retool. And it has provided Americans the security of knowing that the government will help them if trade causes a displacement. Trade adjustment assistance has been vital to my home State of Montana. Since the last TAA reauthorization in 2002, more than 1,500 Montanans have participated in the TAA program. It has helped workers especially in the lumber industry to retrain and re-enter the workforce. In May, one particular Montanan, Jerry Ann Ross of Eureka, testified about trade adjustment assistance before the Senate Finance Committee. Jerry's story is like that of many Montanans who have been laid off from American lumber mills. Jerry worked at a lumber mill for 13 years. But then in 2005, she lost her job. That is when she became eligible for trade adjustment assistance. With TAA's help, Jerry entered a training program at Flathead Valley Community College. She expects to graduate this month. With TAA's help, Jerry has updated her skills. She has made herself more competitive in the workforce as a construction superintendent and an accountant. Jerry's is one of many TAA success stories around the country. At the Finance Committee hearing, we also learned that the current trade adjustment assistance is not perfect. It needs to be updated. We need to improve it to reflect today's globalized economy. That is why in July, along with Senator Olympia Snowe, I introduced the Trade and Globalization Adjustment Assistance Act. Our bill would correct the flaws of today's program. Our bill would extend TAA benefits to service workers. Service workers account for four out of five jobs in our economy. Our bill would extend TAA benefits to workers whose companies outsource to China, India, and other countries with which America does not have a free-trade agreement. Our bill would increase training funds for States. It would make sure that States have enough money to retrain workers. And our bill would increase the portion of the health care tax credit that the Government provides to ensure that trade-displaced workers have access to health care coverage while they are retraining. The House passed similar legislation in November. But the Senate has not yet completed the job. That is why a 3-month extension of trade adjustment assistance is critical. It would keep the current program going. It would provide time for Congress to complete its work on reauthorizing the program. Last week, the House passed a 3-month extension of the TAA program. The House bill is fully offset. It is noncontroversial. That bill should have passed easily in the Senate. But instead, some on the other side of the aisle have chosen to hold it up. Their dispute is over an unrelated issue. As a consequence, some on the other side of the aisle are close to allowing trade adjustment assistance to expire. TAA expiration would send a horrible message to America's workers, especially those who depend on trade adjustment assistance. TAA expiration would also send a terrible message about the 2008 trade agenda. If the Senate cannot pass a 3-month extension of trade adjustment assistance, I am not sure what the Congress can do on trade next year. Reauthorization and modernization of trade adjustment assistance is my No. 1 trade priority for 2008. It is the right thing to do. American workers deserve no less. Unless Congress passes a robust TAA bill next year, I don't see how we can move pending trade agreements. trade adjustment assistance has to come first. So, Mr. President, I call on my colleagues on the other side of the aisle who are holding up this modest extension of trade adjustment to think again. I call on them to allow this useful program to continue, and I call on them to step back from what could be a major setback to American exports and freer international trade.

Mr. BAUCUS

Mr. BAUCUS. Mr. President, as the Christmas season approaches, it is important to pause and reflect on the sacrifices that our men and women in uniform make for us every day. Fully 1.4 million American service men and women have served in Iraq, Afghanistan, or both. Nearly 30,000 troops have been wounded in action. In September, I took a trip to Iraq. I was so impressed by what an amazing job our troops are doing. I met many Montanans from small towns like Roundup and Townsend. Despite all of the hardships that they face--all the danger--they keep at it every day. I saw firsthand what a heavy burden our troops bear for all of us. Today, one small way to support them in their efforts is to make the Tax Code a little more troop-friendly. We can extend the special tax rules that make sense for our military that expire in 2007 and 2008. And we can eliminate roadblocks in the current tax laws that present difficulties to veterans and servicemembers. For example, family members of fallen soldiers killed in the line of duty receive a death gratuity benefit of $100,000, but the Tax Code restricts the survivors from contributing this benefit into a Roth IRA. Today we can make sure that the family members of fallen soldiers may take advantage of tax-favored accounts. Another hazard in the tax laws impeding our disabled veterans is the statute of limitations for filing a tax refund. Most VA disability claims filed by veterans are quickly resolved. But many disability awards are delayed due to lost paperwork or the appeals of rejected claims. Once a disabled vet finally gets a favorable award, the good news is that the disability award is tax-free. But the bad news is that many of these disabled veterans get ambushed by a statute that bars them from filing a tax refund claim. Today, we can give disabled veterans an extra year to claim their tax refunds. Most troops doing the heavy lifting in combat situations are the lower ranking, lower income bracket soldiers. Their income needs to count towards computing the earned income tax credit, or EITC. But the provision that makes EITC work for combat troops expires at the end of 2007. The EITC is a very beneficial tax provision available to working Americans. And it makes no sense to deny it to our troops. Today we can make combat duty income count for EITC purposes and make this change to the Tax Code permanent. I should mention that these tax provisions are fully paid for. A change in the Tax Code makes sure that any individual relinquishing their U.S. citizenship is still on the hook to pay for their fair share of U.S. taxes. A soldier's rucksack is heavy enough as it is without loading it down with tax burdens. We owe the Americans fighting in our armed forces an enormous debt of gratitude. That's why today I am asking for these important tax reforms. They are one small way that we can salute our men and women in uniform for all they do. Also included in this package are a series of tax technical corrections. These noncontroversial provisions contain corrections to various tax acts from 1999, 2001, 2003, 2004, 2005 and 2006. These technical changes include clarifications on the contributions of fractional interests in tangible property, modification of the active business definition under section 355, timing of claims for excess alternative fuel, and the treatment of losses on positions in identified straddles. The technical corrections package also includes a number of clerical and conforming amendments, including amendments correcting typographical errors. This package makes sense and adds clarity to the code, which we desperately need as we head into the 2007 filing season.

Mr. BAUCUS

Mr. BAUCUS. Mr. President, in connection with S. 1974, the Pension Protection Technical Corrections Act of 2007, the ranking Republican member of the Finance Committee, Senator Grassley, and I have prepared a joint statement that contains an explanation of the bill. This explanation expresses the Senate Finance Committee's understanding of the provisions of the bill and serves as a reference in understanding the legislative intent behind this important legislation. I ask unanimous consent that this joint statement be printed in the Record.

Mr. BAUCUS

Mr. BAUCUS. Mr. President, the Senator from North Dakota has some comments about not beating a dead horse. I now yield 7 minutes to the Senator from North Dakota. I might say, we should not beat a dead horse, that is clear, but also we should not look a gift horse in the mouth. We have an opportunity to resolve this and get it done. I urge us to vote quickly so we can dispose of this matter so the American taxpayers get their AMT relief very quickly. I yield to the Senator from North Dakota.

Mr. BAUCUS. Senator Harkin, I agree with you that this is an issue we need to address. As you know, I intend to work with Senator Grassley to move a Medicare reform package early in 2008. Given the importance of this issue, I am committed to working with you to find solutions that will assist these hospitals within the context of our Medicare efforts.

Mr. BAUCUS. I yield back our time.

Mr. BAUCUS. Mr. President, the next vote is on AMT, paid for. We have had this vote several times. It requires 60 votes. I personally believe that the AMT relief we will be providing for here, so the taxpayers will not have to pay additional AMT for 2007, should be paid for. I don't think the votes are here. There are not 60 votes to pay for it. But once this goes down because it doesn't have 60 votes, it is then my expectation that the House will then vote for AMT not paid for so that we can get AMT passed this year. Americans will know they will not have to pay the additional AMT tax, done in a way that is satisfactory. There is an hour allocated on this amendment, a half hour each side. Mr. President, I don't plan to take many more minutes than I have already consumed. I expect the other side will not either. I will reserve the remainder of my time, with the expectation that I will yield back the remainder of my time. For now, I will reserve my time.

Mr. BAUCUS

Mr. BAUCUS. Mr. President, I am pleased that today the Senate is acting on S. 2436, a bill to clarify the term of the IRS Commissioner. The Internal Revenue Restructuring and Reform Act of 1998 provides that the President appoints the IRS Commissioner to a 5-year term. On the face of it, the Commissioner's term of office might seem quite clear. But lawyers in the administration and the Senate have disagreed over when the 5-year term begins and ends. Specifically, there is dispute over whether the term of the IRS Commissioner follows the calendar or the person. Let me explain. If the term follows the calendar, the tenure of the Commissioner begins on the same date every 5 years. For example, if one term ends on November 12, then the next term begins the next day on November 13-- whether or not a new Commissioner has been confirmed. This arrangement provides certainty for the Commissioner's term. It allows for planning and continuity of leadership. It minimizes the ability of an administration to play games with the timing of the term by waiting to fill a vacancy. If the term follows the person, then the tenure of each Commissioner begins on the date of that individual's appointment. Under this scenario, a President deliberately could wait to appoint a new Commissioner until right before the end of the President's term, leaving the next President to inherit an appointee whom the new President did not choose. While the President waited, the IRS could be without a permanent Commissioner indefinitely. That would put tax administration at risk. There is another reason why it is important to clarify the term of the Commissioner. Ambiguity in the term could lead taxpayers to question whether the Commissioner is legitimately in office. And thus ambiguity could call into question the Commissioner's authority to enforce the tax laws. For example, if the term arguably ended in November, but the Commissioner signed a tax pronouncement the next month, in December, then a taxpayer might challenge the Commissioner's authority to act. Tax administration could be compromised. Taxes that are legally owed might not be collected. Staff for the Treasury and the Senate gave this issue much thoughtful discussion. We received credible legal opinions on both sides. We need to resolve the tenure of the term before the Senate confirms another Commissioner. To resolve the differences of interpretation, I worked with the administration to develop the language in this bill. The ranking Republican member of the Finance Committee, my friend, Senator Chuck Grassley, is the principal cosponsor. I am advised that the President and the Treasury Secretary both agree that this legislation is necessary to resolve any concerns over the term of the Commissioner. Upon enactment of this legislation, the Finance Committee and the full Senate will be able to take further necessary steps to confirm a new Commissioner. The IRS needs strong leadership for the upcoming filing season and beyond. I thank my colleagues for their support of this legislation to clarify the term of the IRS Commissioner. Mr. President, the legislative history of this provision is inextricably tied to the legal opinions of distinguished counsel for the Senate, the Justice Department, and the Congressional Research Service. The opinion of the Senate Legal Counsel reflects the motivations of this Senator in advancing this legislation. And the opinions of the Justice Department and the Congressional Research Service are essential to understanding the need for this legislation. Mr. President, I commend to my colleagues the legal opinions prepared by the Senate Legal Counsel, the Justice Department's Office of Legal Counsel, and the Congressional Research Service's American Law Division.

Mr. BAUCUS

Mr. BAUCUS. Mr. President, I wish to recognize a group of hard working student athletes from my hometown who continue to make history. This past Saturday, on a mud soaked field in Savannah, TN, the Carroll College Fighting Saints football team claimed their fifth National Association of Intercollegiate Athletics championship in the past six seasons. The Fighting Saints overcame the weather and a tough squad from the University of Sioux Falls in South Dakota to prevail with a 17 to 9 victory. Carroll College is a private, Catholic college in my hometown of Helena, MT. Carroll boasts an enrollment of about 1,500 students and is known around the country for its award-winning academic and preprofessional programs. Carroll is particularly strong in premedical, engineering, and nursing programs. The Saints enjoy great support from the community of Helena and from folks all across Big Sky country. Fans pack Nelson Stadium on the Carroll campus each Saturday when there is a home game. Rain, snow, sub-zero temperatures--nothing will stop the Carroll faithful from coming out to cheer on their beloved Saints. I always look forward to being a part of the crowd whenever I can. The student cheering section known as the ``Carroll Crazies'' joins with parents and community members to create an atmosphere that is so energetic on game day you would think you were at a much larger school. Like hard working folks all across Montana I value my money, but I was so confident that Carroll would be victorious in the title game that I made a little wager with my good friend from South Dakota, Senator Tim Johnson. The winner gets some delicious buffalo steaks my staff and I look forward to enjoying them. A special thanks to Senator Johnson for being such a good sport. In the title game the Saints were led by running back Gabe Le, who slogged through the mud to pick up 116 hard-fought yards and scored Carroll's only two touchdowns on the day. For his efforts Le, a sophomore from Hayden, ID, was named the offensive player of the game. Le started the season as a backup but found his way into the starting lineup and rushed for over 100 yards in each of Carroll's four victories in the playoffs. The Carroll defense rose to the occasion and slowed down Sioux Falls' high-flying offense. Hard hitting linebacker Owen Koeppen, a junior from Florence, MT, took the honors as defensive player of the game. Koeppen has also been named to the 2007 American Football Coaches Association NAIA All-America Team. The 2007 edition of the Fighting Saints was particularly dominant. They finished the season a perfect 15-0, running their record over the past 6 years to an astounding 79 to 6. The squad didn't surrender a touchdown until the eighth game of the season and gave up an average of less than five points per game. Carroll outscored their opponents by a combined total of 370 to 72. Head football coach Mike Van Diest, a native of East Helena, came home in 1999 to coach the Saints. In addition to the five national titles, the Saints have won eight straight Frontier Conference championships and made it to the semifinal round of the NAIA playoffs seven times under his direction. Van Diest is not only a fantastic coach who has built a winning football program; he is an even better person, husband, and father. Mike has taught his players many life lessons along the way. He preaches the importance of getting a quality education, the value of teamwork, and the need to give back to the community. This embodies the service mission of Carroll College and the school's motto, ``Not for school but for life.'' Coach Van Diest has a lifetime of respect and appreciation for the Carroll standard and tradition of excellence and the college is truly blessed to have him. All of Carroll's athletic programs have enjoyed great success as of late. This fall the women's soccer team won the first ever Frontier Conference Championship and claimed their first ever victory at the NAIA national tournament. The men's and women's basketball team and the volleyball team have also won numerous conference championships in recent years and have represented the school proudly in regional and national tournaments. This record of excellence can be attributed to the fine student athletes that come to Carroll from towns small and large all across Montana and the Northwest. These individuals put it all on the line not only on the playing fields and courts but also in the classroom. I appreciate and admire this tradition of excellence in both athletics and academics. Many athletes achieve honor roll status and go on to experience success in their respective fields of study. The dedicated coaches and their staff have nurtured and helped these athletes to grow by putting in countless hours throughout the year to prepare for their respective seasons. Athletic director Bruce Parker also deserves recognition as he has helped to build and oversee the success of Carroll athletics. Finally, I would like to congratulate the president of Carroll College, Dr. Tom Trebon, whose leadership and dedication have made Carroll the highly regarded institution that it is. I look forward to cheering on the Saints again in 2008 as they begin their quest for an unprecedented sixth national title. I know they will make Montana proud.

Mr. BAUCUS

Mr. BAUCUS. Mr. President, they say that ADM William ``Bull'' Halsey, who commanded the Pacific Fleet in World War II, once said: There aren't any great men. There are just great challenges that ordinary men like you and me are forced by circumstances to meet. Today, the circumstances around energy policy provide us another set of challenges. Today, we will see whether we can rise to meet them. Prices for gasoline, heating oil, electricity, and natural gas have accelerated upward. Since the Senate last considered energy tax legislation in June, oil prices have soared by $30 a barrel. Energy costs have hit working families particularly hard. Nearly every week, the news reminds us of the fragility of our energy supply, whether it is trouble in South America or Africa or in the Middle East. As well, people have increasingly acknowledged the challenge presented by the link between energy use and global warming. To help address these challenges, I am pleased that the Senate will vote today on energy tax incentives designed to promote clean and sustainable energy. Energy tax policy is not new territory for the Finance Committee. In 2005, the committee designed tax incentives for that year's major Energy bill. And last December, we enacted energy tax provisions as part of the end-of-the-year package. We are building on that strong foundation today with additional tax incentives. Most of those incentives were approved by a 19 to 5 vote in the Finance Committee this past June. We did not get 60 votes on the Senate floor in June. But the energy crisis has not subsided. And so we are back here today with an even stronger package of energy tax incentives. The energy tax proposal before us today continues our commitment to clean energy and renewable fuels. The amendment extends existing tax incentives for solar power, wind power, fuel cells, and energy- efficient homes and buildings. And we provide more than $2 billion for renewable energy bonds. But we need to go further. And we do in this proposal. We advance three areas critical to our nation's energy future: cellulosic ethanol, hybrid cars, and coal sequestration. Ethanol made from corn has become familiar territory. Now cellulosic ethanol is the new frontier to explore. This bill proposes a production tax credit of up to $1.00 a gallon for up to 60 million gallons of cellulosic fuel produced from sawgrass, agricultural wastes, and other biomass. Hybrid cars provide a tremendous opportunity to make our transportation sector cleaner. A high-mileage car with no emissions is territory well worth exploring. Our proposal calls for a new $3,500 credit for plug-in vehicles. America has vast reserves of coal. But we have concerns about global warming. It is thus imperative that when we use our coal, we need to try to prevent carbon dioxide from escaping into the atmosphere. Our proposal would provide tax credits for capturing carbon dioxide emitted from industrial use of coal. The proposal also would provide accelerated depreciation for new dedicated pipelines used to transport CO2 from an industrial source to a geologic formation for permanent disposal. A proposal to encourage the construction of additional refinery capacity is also included. We do our work in a fiscally responsible way. Lower budget deficits help to keep interest rates low. That helps to make the economy more competitive. Paying as we go may be a tough task. But the proposal contains offsets that are fair and economically sound. We propose to simplify and improve the tax code by eliminating the distinction between ``foreign oil and gas extraction income'' and ``foreign oil-related income.'' We propose to withdraw the tax breaks under section 199 from the large oil companies. There is strong evidence that the boost from section 199 that the Senate envisioned when we enacted the JOBS Act in 2004 has not been realized. We have heard from the major oil companies. But the majors collected over a half a trillion dollars in profits since 2001, and they are on track to collect up to a trillion dollars in profits over the next 10 years. The Joint Economic Committee has assured us that these provisions will have no affect on consumer prices for gasoline and natural gas in the immediate future. The proposal before us today drops a severance tax on the production of crude oil and natural gas from the Outer Continental Shelf in the Gulf of Mexico. That severance tax was contained in the Senate Finance Committee-passed bill but is not in the proposal on which we will vote today. Here is the territory that we are in: Gas prices are well over $3. The price of a barrel of oil is hovering around $90 a barrel. And concern about global warming is growing. If we do not move forward today, Americans will look back and ask who blocked energy legislation. And they will be astonished. They are not going to understand how good policy designed to address one of the greatest challenges facing our country--some call it a crisis--was blocked by good Senators in December of 2007. The proposal before us today will address the challenge. It addresses today's energy policy circumstances. So I urge my colleagues to meet the challenge and vote in favor of this sound energy package.

Mr. BAUCUS

Mr. BAUCUS. Mr. President, I ask unanimous consent that the pending amendment be set aside, and I call up amendment No. 3660, and ask unanimous consent that once the amendment is reported by number, I be recognized to speak for up to 5 minutes, and that at the conclusion of my statement, the amendment be withdrawn.

Mr. BAUCUS. Mr. President, I ask unanimous consent that the time I am talking not be charged against the time for debate with respect to the Lugar-Lautenberg amendment.

Mr. BAUCUS. That is fine as long as the time is not being charged.

Mr. BAUCUS. Mr. President, more than 200 years ago, Richard Whately, an English logician, said: A man is called selfish not for pursuing his own good, but for neglecting his neighbor's. Not only does our current Cuba policy make it difficult to pursue our own good, we are also guilty of neglecting the good of one of our closest neighbors. Today I am offering an amendment to enable America's farmers and ranchers to sell their wheat, potatoes, and dairy products to a neighbor only 90 miles away and a market of 11 million consumers. That market, of course, is Cuba. In the year 2000, Congress authorized limited sales of food and medical goods to Cuba under the Trade Sanctions Reform and Export Enhancement Act, otherwise known as TSREEA. That law permitted United States farmers and ranchers to engage in cash-based sales of their goods to Cuban buyers. Under this new law, our agricultural trade with Cuba prospered. At its peak, American farmers and ranchers, including those from Montana, sold over $400 million worth of peas, beef, and wheat to Cuba in 1 year. In fact, in the year 2003, I led a trade mission to Cuba and walked away with a $10.4 million deal for Montana. Cuba bought $10.4 million of Montana wheat, beans, and peas. I went back a year later for $15 million worth of Montana goods. But then things changed. In 2005 the Treasury Department issued rules to stymie such sales. Under the guise of clarifying the intent of Congress, the Treasury Department instead undermined the express will of Congress by restricting the ability of U.S. farmers and ranchers to engage in cash-basis sales. Specifically, the new Treasury rule requires Cuban buyers to pay for their goods before they leave U.S. ports. What is the effect of that? That converts the goods to Cuban assets, which makes them vulnerable to seizure in American ports to satisfy unrelated American claims against the Cuban Government. In order for American farmers and ranchers to sell their wheat, beef, and pork to Cuba, they must work with foreign banks, and surrender a portion of their profits to costly fees. Not surprisingly, since Treasury's rule, cash-basis sales of agricultural products to Cuba have slowed to a trickle. It made implementation of Montana's 2004 agreement with Cuba virtually impossible. I think I know the intent of Congress. I was here when that act was passed. I can assure you that we do not need Treasury's ``clarification.'' Congress did not approve legislation to expand trade with Cuba with the expectation that the administration would seek to restrict it. Congress does not approve legislation to enable the sales of products by our farmers and ranchers, while at the same time making it impossible, by the Treasury Department, for them to receive payment. These rules have continued to stifle the ability of farmers to sell their products to Cubans on a cash basis. They have encouraged foreign banks to take a cut of every United States ag deal with Cuba. They have required farmers and ranchers to wait weeks and months to get a license to travel to Cuba to meet potential buyers. They prevent Cuban buyers, who want to come to this country to meet with producers, who are going to buy the American products, from entering our country. This amendment would change that. It restores the true intent of Congress. It simplifies the cash transactions, and expands opportunities for U.S. farmers and ranchers. It enables direct transfers from American banks to Cuban banks. It allows American farmers and ranchers to travel to Cuba to sell their products, and it encourages Cuban buyers to come to the United States to see our first- class products for themselves. These provisions are plain, simple, common sense. These provisions are sound policy. I had hoped we could have a discussion and a vote on this amendment. But, unfortunately, some Members of this body have threatened to hold up the farm bill if we include, or even vote on, these important provisions. Amendment No. 3660 to Amendment No. 3500 Withdrawn. In the interest of moving the farm bill forward, it is with deep regret that I ask unanimous consent to withdraw my amendment.

Mr. BAUCUS

Mr. BAUCUS. Mr. President, within the Treasury Department is a Commissioner of Internal Revenue, who is appointed by the President with the advice and consent of the Senate. The Internal Revenue Restructuring and Reform Act of 1998 provided that the Commissioner is appointed to a 5-year term. This bill, co-sponsored by my good friend and ranking member of the Senate Finance Committee, Chuck Grassley, clarifies that the term of the Commissioner is a 5-year term, determined by reference to a 5-year term beginning with the term commencing on November 13, 1997. This proposal is effective as if included in the amendment made by section 1102(a) of the Internal Revenue Service Restructuring and Reform Act of 1998.

Mr. BAUCUS

Mr. BAUCUS. Mr. President, I very much appreciate the statement of my good friend from Arkansas, Senator Lincoln. I am also very happy we are on the farm bill. It is a long time coming. We have finally worked it out. I do think American farmers and the industry will basically be happy, frankly, when we finally do pass this farm bill, hopefully next week. While we are here, though, I want to address another subject, and that is the tax package in the Energy bill. Not too long ago, a month or two ago, when the Energy bill was before the Senate, there was a tax package as part of that Energy bill. It was voted on and did not get cloture. There were 58 Senators who voted for it. It was clear that Senators were absent, and had they been back here in the Senate, they would have voted for it and we would have invoked cloture on that and it would have become part of the Energy bill. The tax title has strong support. When we brought it up in the Finance Committee, it passed by a vote of 15 to 5. And again, on the floor, there were at least 58 Senators who voted for it. I am quite confident 60 would have voted for it had they all been present. We are now faced with a larger energy bill which includes CAFE renewal portfolio standards, fuel standards, as well as a tax title, and I wish to remind Senators how important this tax title is and how important it is to the Energy bill. We have an obligation as Senators to help make our country as energy independent as we possibly can, for a whole host of reasons. One, clearly, is for national security. Our future is somewhat in the hands of people in other parts of the world--OPEC countries, Venezuela--and that is not good. With oil prices today as high as they are, that is clearly not very good. We want to be in control of our destiny as Americans as much as possible, and energy is such a key component that we should do whatever we can to help make ourselves more energy independent. The CAFE provisions in the bill go a long way in that direction. Some of the other provisions in the bill also help, but the tax title, I daresay, goes as far as any other part of that bill to help make us energy independent. When that bill was before the Senate some time ago, it was about $32 billion. Again, that would have gotten 60 votes here in the Senate had all Senators been present. We now have scaled that back significantly. We cut it back by a third. So it is now about $20 billion. So the tax title that is in the Energy bill is about one-third less than the tax title that was in the Energy bill months ago, which, as I mentioned, got almost 60 votes. I would like to remind Senators what some of those provisions are and why it is so important that we pass the tax title. First of all, it is a minor matter to some, but it is pretty significant to others; the CAFE provision itself will cost about $2 billion out of the highway trust fund. That is $2 billion fewer dollars that will go into the highway trust fund as a consequence of the CAFE standards. Our highway trust fund is already in trouble. We need to add more to the trust fund if we are going to rebuild our Nation's roads and bridges. The tax title now includes about $2 billion to replenish losses to the highway trust fund that would otherwise occur because of the CAFE standards. We have to get that $2 billion back into the highway trust fund to pay for our roads and bridges. That is not well known, but it is part of the tax title. It is important. In addition, there are some renewable provisions, so-called section 45 credits for electricity from wind, biomass--that is a 4-year extension. We need that. I need not tell you the number of times all of us have heard from energy people around the country--whether it is renewables, whether it is alternative forms of energy, biodiesel, clean coal, cellulosic--people need lead time, investors need lead time. They want to invest in these technologies. It will make America more independent. But we need to have these provisions in the law so investors can know what the tax provisions are, what the incentives are, and how long they are going to be in place. If we don't pass the tax title, we are going to dramatically cut back on investors' willingness to invest in biodiesel, alternative forms of energy, other renewable forms of energy. I mentioned cellulosic--and others. It is imperative those provisions be available so we can help make ourselves more independent. Commercial solar extension, that is in the tax title. It is an 8-year extension of the business solar credit. We all know we need solar energy. Add to that clean renewable energy bonds. What is that? Those are basically ways for nonprofits, whether it is counties, co-ops, or Indian tribes, also to develop clean renewable energy. The private sector can do it, for-profits can because they get a tax deduction. This provision enables nonprofits, that is the counties, municipalities, co-ops also have that available to them. Residential solar credit--I mentioned the commercial solar extension. There is also a significant residential solar credit in this legislation. Clean coal projects--half of the power we are consuming in America today is generated by coal. We all know that coal is very important to generate energy. We all know coal is part of the climate change problem. But we need to have clean coal technologies. This tax title has about $2 billion worth of clean coal technologies, so we can help make ourselves more independent but in a way that is totally compatible with climate change. Cellulosic ethanol--there is a credit in this tax title for cellulosic ethanol so we can make fuel from switchgrass, wood chips. Again it doesn't take a rocket scientist to know why that should be enacted this year. Biodiesel, renewable diesel--there is a credit there that extends that through 2010. There is the plug-in hybrid credit. We all see these hybrids driving around, but there is no way to plug them in to get them recharged. The thought is, if we can have plug-in credits so the hybrid cars can be driven into your garage and plugged in, that is going to extend the battery life of those hybrids. That will enable them to get close to 100 miles a gallon. If we had more cars getting 100 gallons a mile, we would be doing pretty well as we become more independent. The commercial buildings conservation credit helps commercial buildings install conservation provisions to save energy. To add it all up, there is a lot in here. It is extremely important. We have an obligation to help make ourselves more energy independent. These are provisions that do so but also in a way that is compatible with climate change. If we enact this tax title, it will lay the foundation for lots and lots of entrepreneurs, with lots of new ideas, to develop all kinds of new ways to develop energy. Let a thousand energy technologies bloom. We are not saying which technology works better compared to others, but at least let's get these provisions in place so entrepreneurs and developers and investors who want to make a buck--this is the American way--are given an opportunity to make a little money while producing some energy in the United States. We are going to accomplish lots of objectives with one provision in this Energy bill. I am working with my colleagues, if they have any objection to this tax title, to figure out a way to modify it to make it work. Our goal, frankly, is, together in the Senate, to become more energy independent. This tax title will go a long way to make that happen. I thank my colleague from Montana who is presiding, the only Senator on the floor but for two others. We will make this work. I suggest the absence of a quorum.

Mr. BAUCUS

Mr. BAUCUS. Mr. President, I listened carefully to the Senator from New Hampshire. I say to my friend, frankly, I would not have written the House bill in the way it was written. I don't agree with everything in the House bill. In fact, I think there are some measures there that probably should be addressed and amended. I also think, though, that we need to get to the House-passed bill so we can fix the AMT. We can't fix the AMT until we get to that bill. Once we get to that bill, any Senator, irrespective of whether cloture has been filed, can always file a motion to strike. So if there are measures in the House bill that the Senator does not like or the Senator from Texas doesn't like or anybody doesn't like, that motion to strike is available. If we get to the House bill, I am going to offer a compromise which I think the vast majority of the Members of this body will accept. We need to get to the bill. We need to vote cloture and get to the bill so we can cure this AMT problem, offer amendments that Senators might find objectionable to the House bill. At the same time, I am going to offer a compromise proposal which I believe will dispose of it. I urge my friends on the other side to let us get on the bill. Then we can vote to strike. We can vote on this compromise proposal I will offer. I mentioned that there are various versions we could vote on. One is just straight AMT unpaid for, period. That is an option. To get there, we need to get to the bill.

Mr. BAUCUS

Mr. BAUCUS. Mr. President, I wish to recognize a great friend of mine and a wonderful woman and leader. Sally Smith passed away December 1, 2007, from complications related to myeloma. Sally founded the Lab School in Washington, DC, one of the premier educational institutions in the Nation for students with learning disabilities. The Lab School is a place where children with learning disabilities are nurtured, taught, given the tools to succeed and the opportunity to flourish. And nearly all of them do. I had heard what an extraordinary place the Lab School is and decided I wanted to find out for myself. On a crisp autumn morning about 4 years ago, I decided to drop by the Lab School on my way into work. I was amazed as I walked into the Castle, which is the main building of the school. As Sally hadn't arrived yet, I was invited to wait in her office. The door was always open as Sally welcomed anyone and everyone. Soon a woman came in looking like a bright rainbow with brilliant colors flowing and dazzling from head to toe. As I spoke with Sally about the school and its mission I quickly came to understand what a unique and wonderful place this was. The Lab School is a safe haven for so many kids who are bright and smart and eager to learn but can't learn in traditional ways. Sally through her hard work and years of dedication has truly created a grand new doorway to education for kids who found the doors to other schools closed to them. From that day on I became great friends with Sally and supported the school in any way that I could. I have attended the annual Gala Awards Dinner which has raised much needed funds for the schools and honored people like Charles Schwab and Magic Johnson who had grown up with learning disabilities and struggled until they found a pathway to education. I always looked forward to visiting with Sally and offered to help in any way that I could. Sally first saw the need for a school to help children with learning disabilities to learn and grow when her son Gary was in the first grade. While Gary was bright and creative, he was unable to read and do simple math. When Gary began to have trouble at school, his parents found that he had severe learning disabilities. The school he was attending gave them few options to help their son learn, and Sally began to realize that for Gary to excel and reach his potential he would need to be given the opportunity to learn in a way tailored to his unique needs. Using what she had learned in graduate school course work in education and observing that her son learned best through storytelling and acting things out, she set out in 1967 to create a school that would use these tools to teach children with learning disabilities. Rather than learning through lectures and traditional textbook exercises, Sally set out to create a curriculum that would allow for artistic, visual, hands-on learning. She invited artist friends to serve as teachers and sought the help of many acquaintances to raise funds that would make the dream of the Lab School a reality. The Lab School has now for 40 years given students like Gary a chance to succeed. From this life learning opportunity, nearly all Lab School alumni graduate and over 90 percent find their way to college. We can only imagine where these students would be without the love and dedication of Sally Smith. Where others saw kids who couldn't learn and were disruptive, Sally saw kids eager to learn and let their creativity bloom in their own special way. And why should these children, the future of our Nation, be pushed aside and forgotten about when they have so much potential and so many gifts to give? The Lab School over the years has expanded and now has nearly 325 students enrolled. It reaches another 250 through tutoring programs for children and adults and many more through summer camps and outreach services. The school also opened a campus in Baltimore. Sally was also a professor at American University's School of Education and was in charge of the master's degree program specializing in learning disabilities. She has authored 10 books on effectively teaching students with learning disabilities and conducted workshops for educators of learning disabled children. Sally's legacy and nurturing teaching style that sought to include and find the potential of each student will never be forgotten by those whose lives she touched. Not only did her students learn a great deal from Sally, but we all can. Mr. President, I ask that a copy of an article from the December 4, 2007, edition of the Washington Post entitled ``The Teacher at the Head of the Class'' be printed in the Record. The material follows. [From the Washington Post, Dec. 4, 2007] The Teacher at the Head of the Class (By Ellen Edwards) At first glance you might have thought you had come upon some improbable tropical bird, full of color and feathers, dressed in layers of patterns on patterns, a pile of rolling blond curls on her head. This, of course, is what captivated children when they first looked at Sally Smith, the founder and director of the Lab School of Washington, one of the nation's premier places for students with learning disabilities. She didn't look like any other adult in their experience, and they discovered she didn't think like any other head of school, either. Sally Smith, who died Saturday from complications of myeloma at 78, looked right back at those young faces and saw potential, intelligence, the charm and grace of childhood. Where other schools saw kids who didn't pay attention, she saw kids who viewed the world in creative ways. Where other schools saw frustration and anger, she saw kids desperate to learn, and she created a school for them. She gave them respect, she gave them hope and she gave them the tools to succeed. Her own son's difficulties with learning caused her to look for ways to teach him, and from the beginning, even before she became a nationally known educator, she placed the responsibility directly on adults in charge. In the school handbook, Smith wrote, ``our philosophy is based on the belief that a child's failure to learn means that the teaching staff has not yet found a way to help him. It is up to the adults to seek out the routes by which each child learns, to discover his strengths and interests and to experiment until effective techniques are found.'' Anyone who ever met Sally has a story to tell. She was larger than life: in her size and presence, in her ambitions, in her throaty voice advocating her ideas. She cultivated artists, and often had them to her Cleveland Park home. She cultivated support for the Lab School, from wealthy and powerful potential donors to parents who could give only their time. Her fundraising gala highlighted learning- disabled achievers, who over the years have included Charles Schwab, Magic Johnson, Robert Rauschenberg, Cher and James Carville. In a closed-door session, the students would face those big names and ask blunt and painful questions: ``Did you feel stupid compared with your siblings?'' ``Were your parents embarrassed by you?'' ``How did you feel when you were asked to read out loud in class?'' The core of all of Smith's techniques, in her 10 books and the PBS series about her work, is empathy. I first heard her name a decade ago from a reading specialist in the Midwest when I was beginning to think I might have a dyslexic child. You're near Sally Smith's school, aren't you?'' she asked me. ``That's the place.'' She said it with such confidence and certainty that I knew I had better figure out who Sally Smith was. I met Sally first as a reporter, sitting in her office and listening to her talk about students the Lab School has taught. I remember in particular the story of the young boy who was good at numbers but not good at reading. The Lab faculty, which individualizes homework, a study plan, classwork, everything, for every student, put him in charge of the school store. He loved selling things. They found a way to catch his interest and motivate him to learn to read. He grew up and out of Lab, and, Smith boasted, had become a successful businessman. She talked about another student who learned kinesthetically, through movement. The teachers spread patterns out on the floor for him to learn math, a map for him to learn geography, and he danced his way through learning. She told me how often tears had been shed in that office, which was crowded with art from students and professionals, and which had an open door policy so vigorously enforced that most people didn't think she even had a door. Parents came to her desperate to find a school where their child would be accepted and challenged, where they could learn and not be warehoused until they dropped out. They brought with them horror stories from other schools that had treated their kids as if they were stupid, made them feel terrible about themselves and chucked them in the corner as a lost cause. After a few months at Lab, they often wept again, with gratitude, because the school meant no more endless rounds of tutors and therapists. It meant free time after school for exhausted children who worked hard every minute of the school day. It meant an end to the isolation of parenting a child who learned differently, because the school community embraced the potential of these children. Five years ago I met Sally again, but this time as the parent of a prospective student. It was clear my son had the family dyslexia gene, and reading was going to be a struggle. He enrolled for third grade, where 12 students in his class had four educators. His lead teacher that year spent a long time figuring out how to get him interested in reading. Of course he was interested, but it was so hard and frustrating for him that he pushed it away. Finally, she realized his interest in baseball might do it. Every day, his homework consisted of reading lessons she had taken from news stories about baseball and had rewritten at his reading level. Every day she created a page of four or five questions for him to answer from his reading. Little by little, his reading got better. He was studying without realizing it. He thought he was just having fun. This learning environment was Sally Smith's creation, her gift to the world of education. She saw how arts could teach all kinds of things, and she shaped the Lab School around the arts. She hired artists as teachers because she knew they would think creatively. They taught sophisticated content without reading. In his first year there, the mythologies of ancient times were taught through what was called Gods Club. The students were taught by Cleopatra, complete with headdress. The students dressed in togas. Each took the identity of a Greek god. To enter the classroom, they used passwords that changed every day, such as ``Corinthian,'' which taught them the name of a column's capital. A painted Nile River ran through the middle of the classroom just as the real Nile runs through Egypt. When the winter break came, and we took our son to the Egyptian galleries at the Metropolitan Museum in New York, he read the hieroglyphics to us while we listened slack-jawed. This was her famous Academic Club method, one of the many she shared as professor in charge of American University's masters program for special education. Our son went on to Knights and Ladies Club, taught by Eleanor of Aquitaine, and Renaissance Club taught by Lorenzo de Medici. He jousted and learned about Holy Wars, made cheese and tasted ravioli, painted a fresco and took on the persona of Dante. He learned, and after four years he moved on to a mainstream school, which was Smith's ultimate goal for all her students. A couple of months ago, my son was visiting the school and saw Smith. She was in a wheelchair, dressed in her usual eye- popping splendor. She took his hand and asked him how he liked his new school. She really wanted to know the answer, and she really listened when he gave it. That was Sally Smith's genius.

Mr. BAUCUS

Mr. BAUCUS. Mr. President, I assume all time is yielded back?

Mr. BAUCUS. We have to wait a few minutes.

Mr. BAUCUS. Mr. President, I don't see anybody who wishes to speak now, but we do have to wait a few minutes before we call the vote. I suggest the absence of a quorum, with the time being equally divided between the two sides.

Mr. BAUCUS. Mr. President, I yield 5 minutes to the Senator from Ohio.

Mr. BAUCUS. Mr. President, first of all, I thank my good friend for his warm compliments. I deeply appreciate it. He is a gentleman. He is a good man. I thank him very much for that. I see Senator Sherrod Brown would like to speak. We are getting close to 6:15. I wonder if Senators might agree to extend the time allowable for debate until we finally vote, say, 10 more minutes equally divided on both sides, if that is agreeable to the Senator from Iowa? I ask unanimous consent and make that request.