THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Tuesday, May 2, 1995 TAG: 9505020006
SECTION: FRONT PAGE: A12 EDITION: FINAL
TYPE: Letter
LENGTH: Short : 37 lines
Roslynn Hill (``Rich win,'' letter, April 21) obviously has no concept of what capital gains are or how the economy works.
Companies get the capital to build and grow from investors. Without investors, companies cannot provide jobs.
I started investing in ``America'' when I was in the Air Force in 1964. At the time, I was enlisted and made $33 every two weeks whether I wanted it or not.
With the aid of a mutual fund, I was able to be part of the American Dream of becoming successful.
At the time there was no capital-gains tax at all, so the incentive was great. That incentive no longer exists since the risks are high and the return, in most cases, is very low.
The statement ``Capital gains are unearned income'' is in error. The IRS will tell you that real quick if you try not declaring your gains or losses.
A wise investor spends countless hours studying the market before investing. Some investors opt to pay brokerages a premium to do the research for them. Either way, a lot of work goes into investing. Those who don't do their research and try to get rich quick without any work can lose all their money equally as quick. Such investors can't get rich. They get poorer, the risks are high and if the incentive to invest is removed by overtaxation, the country losses and so does Ms. Hill and all the other people who want jobs.
JAMES M. WOODALL
Virginia Beach, April 21, 1995 by CNB