Clearly they give real estate investors a powerful reason to continue to stay invested as one moves from one project to the next. However, the 1031 Exchange is not a zero-sum game. There are capital gains taxes paid when one sells securities held for an extended period and then re-invests. Why should real estate investors be treated preferentially? Monies are always needed by government for its myriad of needs. Must taxes and debt always be increased while real estate investors can defer payment on profits indefinitely?