For instance, if interest rates are 10%, tax relief is 30% and inflation is 7%, the real after-tax interest rate is 0%.
This eases the cash flow of a strapped business, and the time value of money makes such investment yield a higher (after-tax) rate of return.
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Even if your withholding rate rises because of possible tax-rate increases after 2012, you can develop a tax-deferral strategy if the flat rate is less than your marginal tax rate.
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In this hypothetical example, you will earn 2% annualized on a pre-tax basis, or 1.3% after-tax, assuming a 35% federal tax rate.
People invest to make money after tax: the higher the tax rate, the fewer investment opportunities that can produce an acceptable after-tax return.
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S. would create a new tax bracket for the highest 1 percent of income and calculate a marginal income tax rate for that bracket sufficient to reduce the after-tax Brandeis ratio to 36.
But the cut-rate tax is good only through 2008, after which the maximum federal rate on dividends pops back up to 35%.
The Bush Administration's proposed new savings accounts are a step--a remarkably bold one--toward a radical tax change in the U.S. This revolution is moving toward what I and others have long advocated: a flat tax--an income tax system with a single rate that would apply after a high threshold and that would exempt levies on capital gains, dividends and interest.
He might have mentioned that the United States has the second-highest corporate tax rate, after Japan.
Up until recently many banks and other large companies had been toying with the idea of delaying bonuses from their traditional payout dates in January, February and March until after the April 6 step-down in the tax rate.
The tax rate after adjusting for tax effects from stock-based compensation and restructuring looks to be 10.5%.
Boeing's after-tax profits were dragged down by the reversion of its effective tax rate from a favourable 27% of earnings in 2011 to a more normal 34% last year.
We are now willing to buy safe bonds that pay above our expected rate of inflation (after tax) out to 7-10 year maturities rather than the 3-5 year target we have maintained for the past two years.
And it does so despite imposing the "Buffett tax" that amounts to a minimum tax rate on capital gains of 30%, only two months after the capital-gains rate increased to 23.8% from 15%.
He believes we need to -- that we can lower our corporate tax rate without diminishing revenues if we go after a lot of the loopholes that exist, a lot of the complexity in the tax code that exists.
The move to impose higher taxes on second homes - set out as part of preparations for the 2015 general election manifesto - emerged after Labour pledged to support a mansion tax to fund a return of the 10p starting rate of tax, scrapped by Gordon Brown in 2008.
At the same time, consumer debt levels skyrocketed and the savings rate actually turned negative (U.S. households consumed more than their after-tax income).
After the 2007-09 Recession, the stimulus packages supported by low interest rate tier 1 lending, tax breaks and initiatives were paramount to save the economies from total collapse.
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Consumers may cut back on spending now that the main rate of VAT (value-added tax) has returned to 17.5% after 13 months at 15% to counter the recession.
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