Tax Breaks For Real Estate: Shades Of The 1980s?

Regarding "How not to build a recovery" (Editorials, Feb. 17): At a time when we have a glut of commercial real estate in the country, it seems to me that tax breaks for real estate are of dubious merit. This is especially the case when such moves might be the ingredients of a recipe for a repeat of the 1980s, precipitating further banking crises and eroding fundamental investment values.

Admittedly, some incentives are necessary to support narrow, socially desirable undertakings with high-risk profiles, such as low-income housing. As to garden-variety investments, I find myself asking: What ever happened to low-leveraged real estate investing based on rate of return as measured solely by cash?

Stephen Fish, President

Springfield Associates Inc.

Easton, Mass.

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