A more realistic example - Reader comments at The New York Sun

Recent Editorials

Reader comment on:
Bid Farewell to Capgains Tax

Submitted by (Fr.) Wm. D. Loring, Jan 5, 2007 13:42

4While I do not disagree with Mr. Epstein's fundamental position, I believe his example is so unrealistic as to seriously distort the argument. I would offer two points:

Long term gains accre to long term investors. I think I am fairly typical of the breed in making decisions to replace investments based primarily on long term prospects for one investment compared to another rather than on minor changes in current income .
Few of us have investments with the entire current value as capital gain; If we use the other figures from his example but assume a more typical gain of half the present value , then the the after tax proceeds would be $925 tather than $850 and the current income would rise from $100 to $101.75. Since transaction costs can range from nothing to rather more than the tax costs, they might (but need not) affect this example.

Despite these caveats I agree that tax considerations do distort markets, and that this is contrary to social utility. I would submit, however, that solutions will not be found without considering the real weight of the distortions in the present situation and in any proposed alternatives, and this requires realistic examples.

(The Rev) Wm D Loring

[The writer is a retired Episcopal Priest who also holds a degree in administration and continues to sit on the Finance committe for his diocese.]

Note: Comments are screened, and in some cases edited, before posting. We reserve the right to reject anything we find objectionable.

Other reader comments on this article

Comment	By	Date
What a no brainer. I own two apartments and an insurance business. They will never sell as long as the... [MORE]	Ernie Harper	Jan 11, 2007 16:29
Okay I've heard your arguments in favor of this tax. But to think that internet sites ran by small business... [MORE]	Jared	Aug 6, 2007 07:32
Two words - FAIR TAX! It is what a rapidly growing number of Americans want because it is fair and... [MORE]	Jason Gill	Jan 9, 2007 22:15
Approximately 40-50% of Americans pay income taxes to cover the rest of us, including illegal immigrants. By switching to a... [MORE]	Paul Morris	Jan 9, 2007 14:16
Mr Epstein certainly understands the importance of the power of a tax system to influence decision making. I agreed with... [MORE]	Dan Gutting	Jan 7, 2007 19:05
If one has studied the Fair Tax in detail it explains how lower income workers benefit more under the Fair... [MORE]	Ed Luck	Jan 7, 2007 14:11
The FairTax (Consumption tax) will replace the illegal income tax which is good. But the income tax which did not... [MORE]	Doug S.	Jan 7, 2007 13:52
Mr. Epstein, This is quite a complicated discussion of a very complex issue. Imagine what individuals and businesses who have to... [MORE]	Keith Ritzler	Jan 7, 2007 13:33
The Capital Gains tax is not the only bad apple in the barrel. All the income-based taxes provide grist for... [MORE]	Chad Sargent	Jan 7, 2007 12:50
All talk about taxes should come down to one simply thing no matter what segment of taxes is talked about.... [MORE]	Tom Kropewnicki	Jan 7, 2007 11:46
In my opinion right now there are a lot of people who don't pay taxes, and if they did it... [MORE]	CJ	Jan 7, 2007 07:36
What a simply brilliant article. Concise and understandable to even the common reader. Modern tax policy is overwhelmingly complex and... [MORE]	Christian Hine	Jan 7, 2007 03:32
Last years HR25/S25 proposed doing away with all income based taxes on indivivuals and corporations and replacing them with a... [MORE]	William M Roberts	Jan 7, 2007 01:28
Thank you for that great article. Our nation needs to wake up to what is happening globally and put American... [MORE]	Kim Kilgallen	Jan 8, 2007 07:59
The current IRS and income tax on individuals and corporations is presently destroying the USA economy. A major portion of... [MORE]	Rudy Treml	Jan 6, 2007 20:26
Mr. Epstein is correct in his breakdown of consumption tax versus income tax. When people have more ot their own... [MORE]	Larry D	Jan 6, 2007 20:12
I'll make this as brief as possible. If Mr. Epstein will spend as much time at Fairtax.org, as he apparently spent... [MORE]	William M. Tidwell	Jan 6, 2007 19:05
Professor Epstein makes very valid points about social and revenue gains to be achieved by reducing taxes on earnings and... [MORE]	Wayne Jett	Jan 6, 2007 13:18
If the citizens of the United States would Quit watching American Idle, and take the time to read the book... [MORE]	Joe Rafacz	Jan 7, 2007 12:30
If nothing else gets us sooner, inflation, for which there is no excuse, will!! Something to call one's own and is... [MORE]	Arthur H. Goldkamp	Jan 5, 2007 21:00
4While I do not disagree with Mr. Epstein's fundamental position, I believe his example is so unrealistic as to seriously...	(Fr.) Wm. D. Loring	Jan 5, 2007 13:42

Comment on Bid Farewell to Capgains Tax

Would You Like to Become a Sustaining Subscriber of the Sun? Sign up now

* Inquire about the Sun Seminars

Sustaining Subscriber Login

Follow The New York Sun

Buy China Wholesale Products on DHgate.com

For Vegas Show tickets, shop ShowTickets.com

Made-in-China.com

Planning an Orlando Vacation? Visit Best of Orlando!

© 2002-2012 TWO SL LLC, New York, NY. All rights reserved.
Use of this site signifies your agreement to the Terms of Service and Privacy Policy.