The final bill approved by Congress will limit the length of time those loans are available, but will put the savings toward financing the interest rate provision.
The provision holds the rate on subsidized Stafford federal loans which had been set to double on July 1 if Congress failed to act at 3.4 percent for the coming academic year.
After intense negotiating, the Lincoln provision was watered down to allow interest rate and foreign exchange swaps dealing to remain inside a commercial bank.
It acts as a safety-valve for a country that has an unemployment rate of 20% and no welfare provision.
Indeed, one of the strongest arguments for a shift to individual provision is that it should raise the personal saving rate, which would help to foster economic growth.
In a little-known provision of the Act, Congress extended the effective tax rate of zero percent on the sale of qualified small business stock (Section 1202 stock).
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Since the estate taxes would be paid at a discounted rate, there would also likely be a provision which would unwind the trust if it was set up within say, three years of death.
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Note: for 2011, the rate is reduced by 2% due to the provision in the 2010 Tax Act to stimulate the economy.
Two factors boosting earnings growth that are not sustainable indefinitely are a declining tax rate (over the past two years) and a lower provision for doubtful accounts despite higher writeoffs.
The new Hologic ESPP boasts a 15% discount rate and a 6-month offering period with a look back provision.
It's a shrewd strategy: Democrats say the administration asked them to lower the corporate tax rate to encourage investment in the U.S. And that provision is part of Rangel's tax overhaul plan.
All that said, the provision of loans to banks by the Bank of England at an effective interest rate of 0.75% has brought down the cost of mortgages and the cost of small business loans.
The most meaningful provision in the 2010 Tax Relief Act was the 2% cut in the Social Security tax rate, from 6.2% to 4.2% (Medicare remains uncapped at 1.45%).
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Undeterred, in Magdalena Mr Cavallo said that he could slash Argentina's 14.5% unemployment rate through tax and labour reforms, and cut the cost of public services by competition in their provision.
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