Capping tax breaks deserves a closer look as part of aresolution to the so-called fiscal cliff and an overhaul of the taxcode, said Senate Finance Committee Chairman Max Baucus.

Similar-sounding ideas, such as a percentage limitation or amaximum dollar amount of deductions, can have disparate effects ontaxpayers, the Montana Democrat said yesterday in an interview withBloomberg News.

“It affects different groups differently and that all has to bebetter understood,” said Baucus, 70, whose committee hasjurisdiction over taxes and entitlement programs. “In theory, youcan do anything you want with numbers. I don't mean to say thatfacetiously. I just mean it because it's true. There are all kindsof permutations here, so long as it's balanced, so long asupper-income Americans are more of the solution.”