January 25,2007

Baucus Outlines Education Tax Objectives

Tuition tax deduction, teacher’s deduction among provisions targeted for Finance Committee action this year

Washington, DC – Senate Finance Committee Chairman Max Baucus (D-Mont.) today
announced that he intends to extend and enhance the college tuition deduction and move a
number of other education incentives through the Committee this year, in keeping with the
panel’s jurisdiction over tax issues. Baucus helped to author the tuition deduction in 2001, and
his Education Competitiveness Act of 2006 proposed improving the deduction as part of a total
overhaul of the U.S. education system. In a December 2006 hearing, Baucus also committed to
further Finance Committee efforts to make certain that tax incentives truly provide the access to
education that Congress intends.

“The Finance Committee finished 2006 with a focus on education tax incentives, and that
commitment will continue under my chairmanship this year,”
Baucus said. “Extending and
enhancing the college tuition deduction, giving classroom teachers a break on supplies, and
helping families save for school will be part of that. But we need to go much, much further.
I want a serious effort to help Americans afford a good education. Working together, the
Finance Committee will craft a strong and fiscally responsible education incentives package
and bring it to the full Senate.”

A Baucus amendment introduced on the Senate floor today reiterated his decision to move
education tax incentives through the Finance Committee this year. Baucus refused to support an
amendment to make a limited number of changes to education tax incentives on the floor, unpaid for and outside the committee process.

The Senator said today that he will introduce a new Education Competitiveness Act this year, and
some tax initiatives to be considered by the Finance Committee will likely mirror elements of his
2006 bill. Provisions in that legislation included a federal deduction for state and local property
taxes that go to support local schools, tax relief for Americans repaying student loans. For more
information, visit http://finance.senate.gov.

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