A Focus on Long Term Is a Must for the U.S.

Unlike James Flanigan in his column “Tax Cut May Get Us Spending Again” (Oct. 9), I believe reduced capital gains taxes and/or a scheme of reduced taxes on differed compensation are not just desirable but essential if there are to be long-term improvements in the economy.

At present, the overwhelming emphasis of U.S. businesses on quarter-by-quarter earnings discourages long-term development efforts.

Unfortunately, without those long-term development efforts, we are failing to fuel the technological advances essential for major productivity improvements. And without that continuing stream of productivity improvements, our standard of living is declining. Thus the restoration and preservation of America’s prosperity depends on business once again emphasizing long-term investments.

Business’s outlook toward long-term investments can be changed by a revised tax policy that provides greater rewards for growth.

Each of us must work to educate America’s voters to the importance of putting aside their immediate and parochial interests to press for a government tax policy that will promote the continuation of the American way of life for their children.

MICHAEL ERNSTOFF

Los Angeles