Earnings
in sentence
640 examples of Earnings in a sentence
Given this dual exchange rate system, hiding Burma’s gas
earnings
becomes easy.
By recording
earnings
at the official exchange rate, they are worth nearly 200 times below what they should be.
Thus, Burma’s gas
earnings
of around $1.2 billion for 2006-07 are rendered into a mere 7.2 billion kyat in the country’s public accounts – less than 1% of the regime’s official public spending.
Recorded at the market exchange rate, however, these
earnings
translate into 1.2 trillion kyat – an amount large enough to eliminate Burma’s budget deficit, as well as the destructively inflationary money printing that is the regime’s preferred method of public finance.
Economists have always believed that previous waves of job destruction led to an equilibrium between supply and demand in the labor market at a higher level of both employment and
earnings.
In Germany, for example, the federal government’s Kurzarbeit program makes up a significant fraction of the difference when, owing to short hours, a worker’s
earnings
fall by more than 10%.
If technology companies’ profits are continually reinvested as intangibles,
earnings
may never appear as output in GDP statistics, but they will affect the company’s market value.
One major area of disagreement is how to tax the foreign
earnings
of US multinational companies (MNCs), a disagreement highlighted by the recent proposals issued by Senator Max Baucus, the chair of the Senate Finance Committee.
The current US system is based on a worldwide principle: the foreign
earnings
of US companies are subject to US corporate tax, with the amount owed offset by a tax credit for taxes paid in foreign jurisdictions.
Most other developed countries, by contrast, have adopted “territorial” systems that largely exempt their MNCs’ foreign
earnings
from home-country taxation.
Current US law attempts to offset this competitive disadvantage through deferral: US MNCs are allowed to defer – potentially indefinitely – payment of US corporate tax on their foreign
earnings
until the
earnings
are repatriated to their US parent firms.
Not surprisingly, most US MNCs take advantage of the deferral option for at least some of their foreign
earnings.
As a means of bringing back this estimated $1.7 trillion in foreign earnings, the Senate Finance Committee’s draft proposals suggest the elimination of deferral.
Deferred
earnings
held abroad are “locked out” of the US economy, in the sense that they are not directly available for domestic use by US MNCs and their shareholders.
For example, firms may use
earnings
held abroad as collateral to take on more debt and incur higher borrowing costs at home.
Or they may use these
earnings
to make investments abroad that yield a lower return than investments at home.
Overall, such efficiency costs are estimated to be 1-5% of deferred earnings, rising as deferrals accumulate.
As the Senate Finance Committee’s draft proposals suggest, the US should jettison its worldwide approach to corporate taxation and adopt a territorial system for taxing US MNCs’ foreign
earnings.
It would also eliminate the efficiency costs of deferral and boost US MNCs’ repatriation of foreign earnings, with significant benefits for output and employment.
Based on recent research that incorporates conservative assumptions, we estimate that under a territorial system US MNCs would repatriate an additional $100 billion a year from future foreign earnings, adding about 150,000 US jobs a year on a sustained basis.
We also estimate that under a transition plan for taxing the existing stock of foreign
earnings
held abroad, similar to one proposed by US Representative Dave Camp, US MNCs would repatriate about $1 trillion of these earnings, adding more than $200 billion to US GDP and about 1.5 million US jobs over the next few years.
A modern territorial system with adequate safeguards against income-shifting and base erosion is the right approach to taxing the foreign
earnings
of US MNCs.
Adequate nutrition improves a child’s long-term health, educational performance, and future
earnings.
Previous governments sought to avoid difficult policy choices and obfuscate fundamental issues by implementing inefficient controls that grossly misallocated resources and undermined Argentina’s ability to generate the foreign-exchange
earnings
needed to cover its import bill, resulting in domestic shortages.
Meanwhile, the
earnings
yield on the stocks that make up the S&P composite is fluctuating around 6%: that is how much money the corporations that underpin the stocks are making for their shareholders.
Couldn’t
earnings
collapse?
But stock market declines that are not accompanied by steep and persistent collapses in
earnings
are by their nature temporary: they are provoked by steep rises in perceived risk, and if those risks turn out to be overblown, stocks rebound when the perception of risk falls.
And how about stock market declines that are accompanied by a steep and persistent collapse in
earnings
– by depressions?
But in the post-World War II era, in which social democratic governments maintain welfare spending and Keynesian economic advisers seek to use fiscal policy to boost output, an
earnings
depression is much more likely to be accompanied by inflation.
True, a steep and persistent collapse in
earnings
will erode wealth invested in stocks.
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