Time to end cap on capital losses

Regarding the story, “A tax-code wish for Obama’s social agenda,” part of the “Waiting on Obama” stories, Dec. 28:

The story raised some salient points concerning areas of the tax code that desperately need reform, particularly the income tax treatment of Social Security benefits. In this period of needed economic stimulus, it would be desirable to forgo taxing such payments, in addition to eliminating the burdensome reporting requirements.

This would also be the perfect year to eliminate the capital-loss restrictions. Why should only $3,000 of such losses be deductible when all gains are fully taxable? In light of the plunging market in 2008, such a change would provide a stimulus to the economy.

I hope Mr. President-elect reads the Los Angeles Business section.

Ira M. Landis

Ocean Hills

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I was astonished to see the assertion by a bond fund manager that inflation is “a pretty easy thing to deal with” in Tom Petruno’s markets column, “Job One: Restore faith in economy,” part of the “Waiting on Obama” stories, Dec. 28.

Remember how easy it was to deal with in the 1980s on a very minor scale here? Deflation will crush us as we are the greatest debtor nation in the world. We could inflate away our debt, but then no one would lend to us and we are utterly dependent on foreign money to fund our huge deficits.

What will restore faith in our economy again is returning to a policy of spending no more than we earn and putting aside something for a rainy day on an individual, state and national level. What will restore faith in our economy is for our nation to be run on sound economic principles. Such a long-term problem will not be solved easily or quickly.

Stan Frymann

Laguna Beach

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Mr. Petruno’s column contains the opinions of so-called analysts and economists on what would lift our economy. Well, they were the ones who told us that if you are going to invest religiously in your pension plan for 30 years and assume 6% to 8% a year return on your investment, you would be accumulating enough funds to retire comfortably.

They forgot to account for the thieves on Wall Street and the lack of any oversight of the industry by regulators and our government. Many retired people are left with pennies on the dollar. My advice to young people is never invest in anything that you cannot control yourself.

Yoel Cohen

Los Angeles