Risk Should Drive Capital Gains Rewards

Kenneth J. Artingstall (“Understanding the Critical Role of Capital Is Essential,” Letters, Aug. 3) makes a reasonably good argument for capital gains tax cuts, except he forgets that capital gains, and, yes, losses, for most individuals come from buying and selling listed stocks on the New York Stock Exchange or Nasdaq.

I would like someone to explain how my purchase of 3M, Xerox or MCI from an unknown seller, who may have bought it only three days before, has improved economic growth or helped create jobs. We agree that the investor who invests in a start-up business deserves a tax break. But the person who buys the stock from the start-up man after the business has demonstrated its value should not be allowed to turn around in six, 12 or 18 months and reap the same benefits. The gambler who plays the market for capital gains does not deserve a tax break unless he is willing to hold the stock for an extended period of time.

A. HAROLD JANKEN

Westwood