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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Mark Nelson who wrote (713)	1/12/1998 1:45:00 AM
From: Esvida	Read Replies (1) \| Respond to of 9980

Mark and Zeev, If this were the case, I think the Korean people must have put up a great show in donating their jewelries to the government. -Al

To: Mark Nelson who wrote (713)	1/12/1998 9:56:00 AM
From: Zeev Hed	Respond to of 9980

Mark, we did to ourselves the same thing when suddenly we changed the rules in our income tax as they relate to real estate investments (the "at risk" rules), that is what precipitated our real estate collapse and subsequent S&L debacle. Capital was deployed not for its best productivity but for its best tax treatment, and the rules should have been changed, but the process needs to be gradual not sudden. Any sudden change in rules that impact capital deployment bring economic dislocations. Right now people are talking about flat income taxes and maybe the replacewment of the income tax with a sales tax, and while I can bring many pro and con for each, the worse thing we can do is move in a short period from one to the other. That will bring on a real deep recession. You just cannot turn a huge ship around on a dime. Zeev