Block · one region of the page, as the scanner read it. It may hold a whole story, part of one, several, or an advertisement; stitching blocks into articles is the next step. Text is supplied OCR.
Page 4 · column 5 of 6 · from the scan, no model involved
To the editor:
An existing inequity in our income tax laws has just been made dramatically more inequitable.
If property was purchased in 1967 for $10,000 and is sold in 1987 for $20,000 there has actually been an economic loss due to inflation. The $10,000 “gain” will now be fully taxed even though the $20,000 received has only about two-thirds of the purchasing power of the $10,000 invested in 1967.
Through 1986 the inequity of taxing this nonexistent gain has been cushioned by the long-term capital gains deduction. The new federal law provides for a maximum tax of 28 percent of ALL the gain. The old law imposes a maximum tax of 50 percent on just 40 percent ofthe gain, resulting in a maximum federal tax of 20 percent of ALL the gain. This is a 40 percent increase in the federal tax.
If you think the 40 percent increase in federal income tax on the sale of assets is rather great then be
91.8%