CUNA CEO/President Bill Cheney said the departure of Sen. MaxBaucus (D-Mont.) from the Senate as Finance Committee chairmanearlier than expected could delay taxreform.

President Barack Obama hasnominated Baucus, 72, for U.S. Ambassador to China.

“Maintaining the credit union federal tax status remains our toplegislative advocacy issue. Recent news that Senate FinanceCommittee Chairman Max Baucus will be nominated as ambassador toChina could possibly delay efforts in Congress to overhaul the taxcode,” Cheney told Credit Union Times.

“However, the issue is far from dead. Indeed, as new leadershipcomes into place, it is as important as ever to continue thenational conversation about the value credit unions bring to thefinancial marketplace, and how our tax status helps support goodpublic policy.”

John McKechnie, partner at the Washington-based advocacy andstrategy firm Total Spectrum, said the tax reform process could slow down significantly due to Baucus' exit.

“While everyone knew that Senate Finance would have a newchairman in 2015 due to Chairman Baucus' retirement, thepossibility that he will exit the Senate stage in 2014 has changedthe political calculus regarding timing. The smart money wasbetting on introduction of tax bills in both chambers next year,and the groundwork would be laid for eventual reform,” he toldCredit Union Times.

“But it now appears that the process may slow down considerably.If the rumors are true that Senator (Ron) Wyden (D-Ore.) will takethe Finance Committee gavel, it will remain to be seen if hedevelops the same close working relationship, and comes to the samebasic agreements on revenue, with House Ways and Means Chairman(Dave) Camp (R-Mich.) that Chairman Baucus did,” McKechnieadded.

Reacting to Baucus' nomination, NAFCU said it would “remainvigilant” in educating Congress about the benefits of protectingthe tax-exempt status for credit unions.

“Senator Wyden, who would likely replace Baucus as Chair of theSenate Finance Committee, is also a proponent of tax reform, andhas a good relationship with (Camp),” said NAFCU Vice President ofPolitical Affairs Katie Marisic.

“Coupled along with recent statements by House Budget CommitteeChairman Paul Ryan (R-Wis.) that he, 'hopes tax reform will betackled in the first quarter of next year,' leads NAFCU tobelieve that tax reform debate will continue in 2014.”

Wyden is the current chairman of the Senate Energy and NaturalResources Committee.

“Our diplomatic relationships in East Asia are some of the mostimportant of the 21st century. He will be an excellentrepresentative of America's interests,” the Oregon Democrat said ofBaucus.

“The Senate Finance Committee has many importantresponsibilities which include promoting job creation, ensuringcompetitiveness and stabilizing the nation's fiscal health,” Wydensaid.

“I also look forward to continuing my work on preserving theMedicare guarantee and protecting retirement security, updating thenation's tax system with a focus on growth, fairness and efficiencyand ensuring that fiscal policy supports keeping jobs here inAmerica,” he said.