In terms of capital markets, interest rate liberalization and a more market-oriented exchange rate are central.
He was also talking about some of the other provisions that we've set out in terms of hedge fund managers, who through a provision, a tax preference in the law, are allowed to have their income, which is designated income from their labor, be taxed at a capital gains rate -- called carried interest.
Using credit quotas and interest rate controls to allocate scare capital leads to corruption and inefficiency.
There is no capital available for LBOs at any rate of interest.
Siddhartha Sanyal, chief India economist with Barclays Capital, said he now expected the main interest rate to be cut to 7.75% from 8%.
For them, capital isn't available at any rate of interest that makes sense for expansion purposes.
The fact that early bonds had no fixed maturity date ensured that any change in interest rate was fully reflected in the capital value of the bond.
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But unlike all of those folks, they are getting paid with this carried interest and paying tax at a lower capital gains rate instead of the usual ordinary income rate.
Or better yet, how about the federal government pays the expropriated investment capital back to investment firms with a negative rate of interest i.e.
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The committee wants to expand capital requirements to cover, for example, operational and interest-rate risks.
The bank's net interest margin--the difference between its cost of capital and average loan rate--has fallen for five consecutive quarters, to 0.9%.
The current interest rate on investment grade bonds, as measured by the Barclays Capital Aggregate Bond Market index is 2.0 percent.
The current top rate on long-term capital gains is 15%, and the top rate on ordinary income such as interest and salary is 35%.
However, the main focus on Thursday will likely center on developments in Bratislava, the capital of Slovakia, where the European Central Bank is expected to cut its main interest rate by a further quarter of a percentage point to 0.5 percent.
For now Moynihan is clearly banking on cost-saving measures associated with mass layoffs to help convince stock market investors that Bank of America is headed in the right direction and can deal with the current low-interest rate environment, mortgage-related legacy issues and new international banking capital requirements that Moynihan said were the biggest challenges facing his bank.
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High-income people will jump at the chance to pay a 15% rate rather than 35% and have all of their interest, dividends, capital gains, rents, royalties, etc. exempt from tax.
In 2011 and 2012, half of the carried interest would be taxed at the ordinary income rate, with the remaining 50 percent eligible for capital gains treatment.
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The top rate for capital gains has increased to 20% from 15%, but most of the carried-interest benefit has been retained.
Congress is also considering taxing the carried interest of partners in private-equity firms as income rather than capital gains, which are taxed at a lower rate.
In the euro area, it is much harder to turn capital gains into cash by borrowing more as home prices rise or to benefit from falling interest rates by refinancing fixed-rate mortgages, both of which have given a big boost to American household spending.
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.
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