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The higher the capital gains tax, the lower the expected future income and, hence, the lower the value of the asset.
Iceland offers a lesson in this respect, as it has written down the underlying assets and debts of companies to the discounted value of expected future income as well as mortgages to 110% of fair value.
As many economists have observed, "excessive debt" is a ratio, not an absolute -- it is defined relative to expected future income.
Valuations are generally based on an idea of expected future income, so, having our fair share of aeronautical engineers, as well as a good American representation in the group, we have a great discussion about the assumptions underlying the valuation, the future of the air travel market, and the role of governments and other stakeholders in funding such large projects.
The existing literature is currently too limited, and restricted to a few selected countries, to warrant any major reforms in RMNCH policies based on expected future income impacts.
In low- and middle-income countries, the existing literature currently is too limited, and restricted to a few selected countries, to warrant any major reforms in RMNCH policies based on expected future income impacts.
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Evidence (from the Bank of England here) and theory (from Paul Krugman here and Mervyn King here) suggest that when there's a shock and confidence collapses, households think less about their net worth and more about their gross nominal debt burden – specifically its relation to their expected future incomes.
The other possibility, however, is that even if prices are expected to be stable, yf is high compared with the future - or to put it differently, peoples' expected future real income is low compared with the amount of consumption needed to use today's capacity.
And they then assume huge distortion effects from taxes, so that lower tax rates add substantially to expected future pre-tax income too.
The value of the contract at the time of the repudiation would reflect both the expected future stream of income (lost profits) and the efforts of the counterparty to adapt if performance ceased (mitigation).
In addition, to the extent that higher body weight has a negative effect on single individuals' probability of marriage, this entails lower expected future access to spousal income as well.
More suggestions(16)
expected future incomes
expected gross income
expected future tax
expected rental income
expected future return
expected future business
expected future value
expected future appreciation
expected future volatility
expected future growth
expected future work
expected future user
expected future credit
expected future complaint
expected Taxable income
expected future variance
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com