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MULTIPLE PURPOSE RIVER DEVELOPMENT 



return is equal to the average rate of return earned by the income 

 class. 



These rates have been stated before taxes. In the case of funds 

 actually used for investment, this rate measures the social oppor- 

 tunity cost since the assets which the money makes possible yield 

 this return. But in determining a rate of interest which measures 

 the value of the funds used for consumption, we must use the rates 

 of return that could be earned after taxes, since these are the 

 rates which households actually face in making decisions. Table 



TABLE 14. Rates of Return Earned by Households, Adjusted for Taxes by 



Upper-Income Classes and Form of Property 



Rates of return for form of property income (per cent) 



Dividends Average rate 



Income class Business plus retained of return ' 



($ thousand) income earnings Rent Interest (per cent) 



Rate of return be- 

 fore tax " 6.0 8.0 8.0 3.0 — 



Rate of return after 

 taxes by house- 

 holds = for: 



5 to 7.5 4.5 6.5 6.0 2.2 5.0 



7.5 to 10 4.2 6.2 5.7 2.1 4.7 



10 to 15 3.8 5.8 5.1 1.9 4.4 



15 to 20 3.2 5.1 4.2 1.6 3.8 



20 to 30 2.5 4.6 3.2 1.2 3.2 



30 to 50 2.1 4.4 2.8 1.0 3.1 



50 to 100 1.4 4.0 1.9 1.2 2.9 



Over 100 0.7 3.4 0.9 0.9 2.8 



Applicable rate of 

 return "* for: 



5 to 7.5 4.5 6.5 6.0 2.2 5.0 



7.5 to 10 4.4 6.4 6.0 2.2 4.9 



10 to 15 4.4 6.4 5.9 2.2 5.0 



15 to 20 3.9 5.9 5.2 2.0 4.6 



20 to 30 3.9 6.0 5.1 1.9 4.6 



30 to 50 3.7 5.8 4.9 1.8 4.6 



50 to 100 3.2 5.6 4.3 2.3 4.6 



Over 100 2.8 5.2 3.7 1.9 4.6 



» The average is weighted by the distribution of property income within the 

 income class. 



