Robert L. Ehrlich, Jr. letter to J.H., March 24, 1997

Congress of tfie (Hntteb States SjouPt of fiepMmtatibcs ©Elasfjington, QC 20515-2002 March 24, 1997 Dear Thank you for contacting me to express your views about House Speaker Gingrich’s recent comments regarding the future of the GOP tax cut proposal. It is always good to hear from concerned Marylanders, even those who do not reside in the Second Congressional District of Maryland. I agree that balancing the federal budget is the top priority facing our nation today. However, I do not believe that balancing the budget and cutting taxes are mutually-exclusive goals. Reducing the capital gains tax will, in fact, increase revenues to the U. S. Treasury, much the same way it did during the 1980s. Moreover, eliminating the estate tax - the most unfair and destructive tax of all, in my opinion - would, according to a 1993 study from the Center for the Study of Taxation, increase the country’s gross domestic product by $79.2 billion. In other words, tax revenues would increase because more tax-paying businesses would survive into the second and third generation of ownership. Achieving a balanced budget must remain our top goal. This can, however, be accomplished without abandoning our commitment to the most under represented special interest of all — the American taxpayer. In fact, Speaker Newt Gingrich has since clarified his earlier remarks to reaffirm his commitment to achieving a common-sense tax cut. Once again, thanks for contacting me. Let me know if I can be of additional help to you in the future. Sincerely, Robert L. Ehrlich, Jr. Member of Congress