Robert L. Ehrlich, Jr. letter to the editor of the Baltimore Sun, July 28, 1999

ASSISTANT DEPUTY MAJORITY WHIP Congress of tfje United States Ssoubc of SSepresontatibes Masfjington, Ш 20515-2002 July 28, 1999 Letters to the Editor The Baltimore Sun 501 N. Calvert St. Baltimore, MD 21278 Editor: 1 am compelled to respond to the Sun’s editorial entitled "Alan Greenspan vs. the Republicans " for three reasons. First, it is important to note that Fed Chairman Alan Greenspan’s statement was taken out of context. Chairman Greenspan’s remarks on the Republican tax relief bill were as follows: "My first priority, if I were given such a priority is to let the surpluses run, as I’ve said before, my second priority is if you find that as a consequence of those surpluses they tend to be spent, then I would be more in the camp of cutting taxes, because the least desirable is using those surpluses for expanding outlays." Since President Clinton and most liberal Democrats in Congress have already pledged to spend the surplus on additional federal programs which results in expanding outlays, I welcome Mr. Greenspan into the tax cut camp. Second, if the Sun is now taking its cues from the Fed Chairman regarding fiscal policy, I look forward to your endorsement of Chairman Greenspan’s long standing call to reduce the capital gains tax to zero (a position I strongly support). Middle-class workers with 401k retirement plans or mutual funds benefit greatly by a capital gains tax reduction. Moreover, older Americans who sell their homes and other assets at a profit also stand to gain by elimination of this tax.