Reducing Taxes on Capital Gains

Rep. Pease calls for fairness in his article rebuking the Bush Administration for wanting to lower tax rates on capital gains.

How about fairness to my 80-year-old retarded sister, who relies on a 40-year-old trust fund painstakingly scrimped together by a mother who wanted to protect her daughter from public welfare? Sure, her fund has luckily increased in value five times over four decades. But unluckily, dollars now buy only 1/10th as much health care, if that. Perhaps we could maximize her income by shrewd exchanges of money instruments, but not when there are penalties exceeding 25% on every exchange.

Similar cases abound.

Just a few years ago The Times carried an article by someone urging that capital-gains taxes be prorated by length of possession: the longer property was held, the less the tax. Such taxes would release many stagnated financial holdings, my sister’s included, add millions/billions/trillions (who knows) to tax receipts, and relieve many aging citizens locked into investments inappropriate for their declining years. It would not enrich wealthy traders mentioned in the Pease article.

Such taxes would also pave the way for fair revisions of present large one-time exemptions on profits made by sale of residences. Elderly empty-nesters could safely sell homes grown too large; they wouldn’t need special exemptions.

I didn’t vote for Bush, but so far I like what I’m hearing.

DON McKENZIE

Hollywood