When the marginal return on investment from acquisitions risks being low, distributions to shareholders should be more substantial, Peris says.
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And has so far been, at best, marginal with its big China investment, right?
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And, they calculate that the marginal effective tax rate on investment by a U.S. firm in a low-tax country is, remarkably, a negative 24 percent.
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Low tax rates make it easier to get to the point of diminishing marginal utility from extra work and incremental investment risk.
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Supply-siders believe that permanent cuts in marginal tax rates (particularly on savings and investment) will increase economic growth.
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If that money had to be borrowed and repaid, the investment in education could quickly become marginal compared to alternatives, especially as college students are a self-selected group who would probably earn more than the average high school graduate anyway.
So can rational tax policy: keeping marginal rates on corporate profits, individual income and investment gains low to encourage hiring and capital deployment.
The key to 9-9-9 is that marginal rates on income will drop, encouraging work, investment, and growth.
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If the marginal propensity to consume were 100 percent, there would be no investment, and, soon, no income.
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Current promised Social Security benefits are weak and marginal compared to what would be gained through a lifetime of real savings and investment.
The marginal tax rate is the rate on the next dollar to be earned from any investment, enterprise or productive activity.
And that the rise in the top marginal tax rate on capital gains will stop the flow of capital out of one investment and into another.
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So in order for the marginal return to be attractive, you have to consider the presence and financial terms around those sunk investment costs.
The Tax Reform Act of 1986 basically cleaned out bloated tax benefits, like the Investment Tax Credit, as a way to generate enough revenue to allow for a significant lowering of marginal tax rates.
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