On the Record

■ President Bush wins round in fight to lower capital-gains tax. Evans & Novak reported that on his return from summer recess, Speaker Tom Foley predicted a cut in capital-gains tax despite his own opposition. Then, last week, Ways and Means Committee voted 19 to 17 to support cut (must go to full House for final approval). Six committee Democrats broke ranks to support reduction to 19.6 per cent: Mike Andrews (Tex.), Beryl Anthony (Ark.), Ronnie Flippo (Ala.), Andrew Jacobs (Ind.), Ed Jenkins (Ga.), J. J. Pickle (Tex.). . .,Majority Leader Richard Gephardt called vote “a tax folly.” ‘ ‘ Middle-income Americans, lower-income Americans,” Gephardt says, “are going to be asked to pay for this.” Thomas Downey (D., N.Y.) labeled it “a middle-class massacre.” Estimates are that revenues will be $3 billion higher next year if rate is 19.6 per cent than if it stays at 28 per cent. Treasury Secretary Nicholas Brady called it “a major step forward in providing incentives for long-term investment in the United States.” Committee Chairman Dan Rostenkow- ski complains that the vote “could be a first step in the unraveling of tax reform.”

■ Franking Privileges: To help cover Bush’s War on Drugs, the Senate voted to cut $45 million from the budget slated for congressional mailing privileges. Its not likely to pass House, where franking is a rep’s life-line. The bill’s sponsor, Sen. Pete Wilson (R., Calif.), argues: “Let us be perfectly honest—the American people’s lives do not depend on congressional newsletters.” . . . Cost of congressional mailings rose from $54 million in 1981 to $113 million in 1988. Sen. Gordon Humphrey (R., N.H.) has submitted a bill to require public disclosure of each congressman’s and senator’s mailing record. . . . Talk in Washington is that Barney Frank matter is far from over; that he could still be forced to resign, or lose seat in 1990. However, there’s been little condemnation publicly from Democrats, whereas GOP called for resignation of Rep. Donald Lukens (R., Ohio), convicted for sexual relations with under-age female. Democrats, however, must be cautious not to offend gay lobby. Boston Globe, always a supporter of the congressman, has called for him to resign “for his own good, and for the good of his constituents, his causes, and Congress.” Paul Mero, spokesman for Rep. William Dannemeyer (R., Calif.), says Frank “should resign. The last thing this joint needs is to have the American public perceive that Mr. Frank’s colleagues will put up with this nonsense.” Gay-rights activist Roger Doughty says Rep. Frank is a “victim” of society: “Gay people and minorities are held to a different standard because we’ve been cultured to believe that gays are promiscuous.” But many gay leaders are quietly deserting Frank for exploiting/ being exploited by a prostitute and hurting gay cause. . . . Public Advocate, government watchdog group, has started up the Barney Frank House-Sitting Squad. PA hopes to keep the riff-raff away from Rep. Frank’s Washington home, as well as instituting “Hooker-Free Zones.”

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House of Representatives

■ President Bush wins round in fight to lower capital-gains tax. Evans & Novak reported that on his return from summer recess, Speaker Tom Foley predicted a cut in capital-gains tax despite his own opposition. Then, last week, Ways and Means Committee voted 19 to 17 to support cut (must go to full House for final approval). Six committee Democrats broke ranks to support reduction to 19.6 per cent: Mike Andrews (Tex.), Beryl Anthony (Ark.), Ronnie Flippo (Ala.), Andrew Jacobs (Ind.), Ed Jenkins (Ga.), J. J. Pickle (Tex.). . .,Majority Leader Richard Gephardt called vote “a tax folly.” ‘ ‘ Middle-income Americans, lower-income Americans,” Gephardt says, “are going to be asked to pay for this.” Thomas Downey (D., N.Y.) labeled it “a middle-class massacre.” Estimates are that revenues will be $3 billion higher next year if rate is 19.6 per cent than if it stays at 28 per cent. Treasury Secretary Nicholas Brady called it “a major step forward in providing incentives for long-term investment in the United States.” Committee Chairman Dan Rostenkow- ski complains that the vote “could be a first step in the unraveling of tax reform.”

■ Franking Privileges: To help cover Bush’s War on Drugs, the Senate voted to cut $45 million from the budget slated for congressional mailing privileges. Its not likely to pass House, where franking is a rep’s life-line. The bill’s sponsor, Sen. Pete Wilson (R., Calif.), argues: “Let us be perfectly honest—the American people’s lives do not depend on congressional newsletters.” . . . Cost of congressional mailings rose from $54 million in 1981 to $113 million in 1988. Sen. Gordon Humphrey (R., N.H.) has submitted a bill to require public disclosure of each congressman’s and senator’s mailing record. . . . Talk in Washington is that Barney Frank matter is far from over; that he could still be forced to resign, or lose seat in 1990. However, there’s been little condemnation publicly from Democrats, whereas GOP called for resignation of Rep. Donald Lukens (R., Ohio), convicted for sexual relations with under-age female. Democrats, however, must be cautious not to offend gay lobby. Boston Globe, always a supporter of the congressman, has called for him to resign “for his own good, and for the good of his constituents, his causes, and Congress.” Paul Mero, spokesman for Rep. William Dannemeyer (R., Calif.), says Frank “should resign. The last thing this joint needs is to have the American public perceive that Mr. Frank’s colleagues will put up with this nonsense.” Gay-rights activist Roger Doughty says Rep. Frank is a “victim” of society: “Gay people and minorities are held to a different standard because we’ve been cultured to believe that gays are promiscuous.” But many gay leaders are quietly deserting Frank for exploiting/ being exploited by a prostitute and hurting gay cause. . . . Public Advocate, government watchdog group, has started up the Barney Frank House-Sitting Squad. PA hopes to keep the riff-raff away from Rep. Frank’s Washington home, as well as instituting “Hooker-Free Zones.”