‘Tax Shelters’

The Ralph Nader approach to “tax shelters” is deceptively simple and misleading. A legal “shelter” is a tax-advantaged investment because of legislative decisions that the investment contributes to the nation’s social and economic goals. Examples are searching for oil and gas to replace our declining proven reserves, new construction for homes and offices, and new machinery and equipment to create competitive industry. All of these generate additional jobs and additional taxes.

Those who have higher incomes are the ones who may have capital available and we should thank them for their willingness to consider a greater risk for a greater reward. Nader’s young activists should be aware too that in leveraged investments offering deductions greater than dollar for dollar, other than real estate, the investor is “at risk” for additional dollars if the investment is not successful.

ELMER D. SAMSON Los Angeles