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In an evaluation of engineering economics, Maurer points out an inherent flaw in comparing decentralized versus SB sanitation systems when converting capital investments to annual equivalents based on their expected life times.
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When you cash out the annuity you discover that it has converted capital gains taxed at favorable rates into ordinary income taxed at high rates.
But they convert capital gains that would have been taxed at 20% into ordinary income taxed at up to double the rate.
Worse, when you do sell, you will find that your annuity has converted capital gains that usually get favorable tax treatment into ordinary income taxed at twice the rate.
You know the basics: Hold onto winning stocks for at least a year to take advantage of the 20% long-term gains rate; avoid variable annuities that hold growth stocks, since that just converts capital gains into ordinary income; choose tax-exempt muni bonds over corporate bonds if you are in a high bracket.
In addition, 90 days is not enough time to convert capital-centric programs to value-based programs.
"With this transaction, we are converting passive capital into active capital," he said.
Sadly, this is not about trying to be faithful to the text; this is about converting religious capital to political capital.
The possibility of converting hybrid capital would only go so far.
The deals begin on an interest-only basis at a fixed rate for the first three years, automatically converting to capital and interest repayment for the remaining term of the loan, and are available via the banks' 330 branches.
Ideas floated in the 80s included variants on a social dividend, whereby publicly listed companies would be required to issue a percentage of new shares each year (a process known as equity dilution) to be lodged in a citizen's trust that would provide all citizens with a growing dividend on the profits of the whole economy, thus converting monopoly capital into equitable income.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com