Our Tax Laws Consider Those Who Save Are Fools

The savers of our society, those who save money in banks and savings and loan institutions, provide the financial base for the growth and well-being of our economy by providing the funds necessary for construction, home purchases, business expansion, etc.

The savers of our country have laid their savings open to the ravages of inflation and the resultant loss of purchasing power, while providing borrowers with the means to consume. Savers accept deferred gratification while borrowers experience immediate gratification of their needs and desires. Savers sacrifice so that others may have more.

Our tax laws subsidize borrowers through the tax deductions of interest payments and provide those who gamble in the stock market, often with borrowed money, with a reduced tax on profits via long-term capital gains.

The savers who provide the funds necessary for all growth and development are ignored. The income generated by savings accounts is taxed without consideration at the saver’s top tax rate.

The savers in our society are considered fools by many, and are certainly treated as such by our tax laws. As the savings rate of our nation continues to decline, we may someday realize who the real fools are.

ROGER A. EVANS

Redondo Beach