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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: willcousa who wrote (4851)	1/9/2003 6:56:56 PM
From: Sam Citron	Read Replies (1) \| Respond to of 25522

in most years the capital gains were mostly from inflation and not real This is never truer than in the case of the portfolios of people who held common stock through the 1970s. My mother was in her peak earning and investing years at that time. There are substantial capital gains, even after the declines of the last 3 years, but most of these gains are in nominal rather than real dollars. Furthermore, even the calculation of the capital gains over a 30 plus year period is a significant burden, what with the corporate reorganizations, mergers and spin-offs that occur during that period of time. The current tax law gives every incentive to DOING ABSOLUTELY NOTHING, locking capital into the investments of yesterday in order for heirs to get stepped up basis at death of the principal. I can not imagine a worse set of disincentives that actually discourage capital formation and capital mobility.