Such tax credits do not have the incentive effects of rate cuts explained above.
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For the most productive members of society, our progressive tax rate removes the incentive for investment.
If deposits are insured, there is little incentive for a bank's customer to assess its creditworthiness and every incentive to take the highest rate on offer.
So there was a massive incentive to try and manipulate that rate.
Because these assets commanded an above-market interest rate, banks had every incentive to hold onto them.
The year-over-year improvement was led by higher sales, lower associate incentive expense and a lower effective tax rate.
As an incentive to change behaviour, the tax rate also looks too low.
At the same time, the utilities charge residential consumers a flat rate, giving them no incentive to run appliances during off-peak hours.
Such thin interest-rate spreads give governments little incentive to trim their deficits.
With the IOR rate far above the 90-day T-bill rate, banks had no incentive to do anything with the huge volume of newly created reserves other than to sit on them, and sit on them they did.
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So the new law increases the tax incentive to give by raising his marginal tax rate (and making deductions more valuable).
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From a rate of 3.4 ringgit to one dollar, the currency was devalued to 3.8, well below the then market rate, so investors had little incentive to take their money out by illicit means.
The adviser must achieve a 7% annualized hurdle rate (1.75% quarterly) before earning any incentive fees.
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If the bond isn't redeemed, the investor usually receives a higher rate, or "step up, " giving the issuer incentive to redeem.
This would both maximize the incentive of people to save for retirement (the U.S. savings rate is abysmal) and to spend those dollars wisely once retired.
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Currently a doctor would be reimbursed at a certain rate for each X-ray and procedure, which creates an incentive to order up a lot of unnecessary tests.
Existing home sales rose 5.9% in November, selling at the highest rate since November, 2009 (when there was a tax-credit incentive in place for first-time home-buyers).
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With a "pay for performance" plan, a doctor would receive a fixed rate for, say, fixing someone's knee, eliminating the incentive to order up lots of unnecessary test.
Maersk does expect some improvement in rates in the fourth quarter, but management has little incentive to sound positive just yet--raising the company's outlook won't necessarily help with rate negotiations.
Once the top rate of capital-gains tax is cut to 20%, this discrepancy widens, raising the incentive for people, particularly business owners and the self-employed, to disguise their income as capital gains.
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