Senate Finance Committee Chairman Max Baucus (D-MT) has released a statement calling for a special Inspector General to oversee whatever program is put in place at the Treasury Department to bailout failing Wall Street banks and investment houses. Baucus's letter is signed by 32 other Senators and really makes a lot of sense, which is something we don't often say about Sen. Baucus's proposals. So hats off to Baucus! Let's hope this proposals is integrated into the final plan being developed.

When Congress is not figuring out the best way to give Treasury Secretary Henry Paulson's golfing buddies $700 billion, their attention is focused on tax legislation. Specifically, the House and the Senate are working on coming to agreement on several tax code areas: a patch for the AMT, (renewable) energy tax extenders, non-energy tax extenders, and tax relief for disaster victims.

Quick update following up on my earlier post about Congress' progress during this final potentially final week of the session. The House has passed the CR/Omnibus/Emergency gigantic package of spending items this afternoon, 370-58. The House is currently working on voting on some of the tax bills I jumped into earlier, most of which will have to be sent back to the Senate either because of changes in offsets or due to minor differences. More to come tomorrow.

Budget afficionado Stan Collender says that a $700 billion Wall Street bailout will define the budget and, ultimately, the next president's spending priorities for several years.