By Martin Crutsinger
AP Economics Writer
Thursday, Jan. 25, 2001; 10:09 a.m. EST

WASHINGTON –– Federal Reserve Chairman Alan Greenspan, providing critical support for President Bush's efforts to cut taxes, told Congress today that rising estimates of budget surpluses give Congress room to cut taxes.

However, Greenspan suggested that Congress should consider some mechanism to make sure that the tax cuts could be suspended if the revenue projections turn out to be too optimistic in later years.

Greenspan, who previously had expressed a preference for using the surpluses to pay down the national debt, said he still believes debt reduction is the best use for the added revenue. But he said government estimates project more than enough surplus funds to pay off the debt and still cut taxes.