President on the State of the Union

Lowering the capital-gains tax does exactly what the country does not need. In contrast to the Japanese, who have sought wealth by production, Americans have emphasized obtaining wealth by paper manipulation. The Macy’s bankruptcy symbolizes where that process has brought us.

By providing an economic incentive to convert ordinary income to capital gains, lowering the capital-gains tax just encourages more paper manipulation.

BOB CLARK JR.

Los Angeles