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To: Jim McMannis who wrote (71679)	1/20/1999 3:15:00 PM
From: Robert Douglas	Read Replies (2) \| Respond to of 186894

Here's one more delightful thought. When the United States Government sells a stock, will they pay capital gains taxes? Ridiculous question, I know but hear me out. When I sell a stock at a profit, the government takes their requisite 20% right? So then Uncle Sam takes my capital gains and buys, possibly from me selling shares to pay taxes, stocks in the open market. Sam's purchase drives stocks up further and creates even more taxable gains that end up in his pockets. Interesting circle isn't it? More surplus, more capital gains, etc. etc. concentrating more wealth, more power and more financial influence in that great body of benevolence and efficiency, the U. S. Government. Hey, here's an idea. Cut capital gains taxes and let us invest our own money in ideas that we think add real wealth to the citizens who make up this country. -Robert

To: Jim McMannis who wrote (71679)	1/20/1999 3:50:00 PM
From: Burt Masnick	Read Replies (1) \| Respond to of 186894

Who picks the indices today? And yes, if you are left off that index, there is a disadvantage vis-a-vis those who are on it. That said, indices are pretty close to neutral. I'm not arguing that this is the best way to do have the federal government do what every company and every state government with a pension fund does (actually invest in stocks and funds) but it is awfully close to neutral. Today, successful companies wind up on or move onto their respective indices and unsuccessful ones drop off their respective indices. An index fund is a perfectly respectable way to invest in the market. It is not the way to get "peak" returns the way individual stock pickers can consistently do, but it's reasonably neutral with respect to government intervention. However, I think it might be better to enable individuals to set up a "Social Security 401K" with the individuals making the investment choices just as they do with their current IRA, 401K and 403B accounts. Problem with that is that far too many folks (over 50%) with those kinds of accounts choose the GIC alternative which "guarantees" a low but steady rate of return (currently 5 to 6%).