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 6 of 6 · from the scan, no model involved
1987, the parcel sold for $130,000, arj apparently handsome profit.
But was it? Income laws passed by Congress and his state legislature resulted in a 33 percent tax on the! $110,000 profit, leaving about* $74,000 (plus the original $20,000 in:! vestment). Now consider the impact of inflation. In 1987, $1 was worth about 16 cents compared to a 1966 dollar, so that my friend’s $94,000 had an actual purchasing power of around $15,000. Having invested $20,000 more than 20 years ago, paying annual property taxes and other costs, my friend was a sad loser.
What difference does this make, and how does it apply to the pro^ posed pay increase for members of Congress? It helps explain why few Americans today invest for the long term; why leveraged buyouts and their quick profits are popular; wh$ our savings rate is near four percent compared to 20 percent in Japafi (which has no tax on capital gains); and therefore why the United States is falling behind 'industrially despite some of the world’s finest inventors ’ workers and managers.
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