* BEA'S new indexes eliminate the substitution bias in real GDP growth that tends to cause an understatement of growth for periods before the base period and an overstatement of growth for periods after the base period:
For example, the use of chain-type indexes corrects an understatement in real growth in manufacturing that would result from using fixed-weighted indexes for years prior to the base period of 1987.
Although the annual weights provide more accurate estimates, the chained (1992) dollars are not strictly additive, especially for periods far away from the base period. Previously, the use of the same base period for all time periods produced a set of indexes that converted to dollar-denominated measures in which the components were valued in the same prices over all time periods and added up precisely to the totals.
Although the resulting estimates are not precisely additive, for years dose to the 1992 base year (when the price weights of the chain-type index are not too far from the prices of the base year), the residual, is small, and the contributions to growth obtained from the chained (1992) dollars are reasonable approximations to those calculated by BEA from the detailed chain-type indexes.(11) However, for periods far from the base period, the residual in chained dollars becomes large, and contributions to GDP growth computed from the chained-dollar components can differ significantly from those produced by the chain-type indexes.
TEI objects to a rule that limits increases in the base period ratios but does not apply correspondingly to limit decreases in the ratios.
and foreign base period ratios substantially limit the ability of a taxpayer to manipulate the netting rule.
TEI believes that application of the 110-percent limitation to each base period year for each ratio serves no valid purpose.
Finally, if the 110-percent limitation rule is retained, TEI recommends that the proposed regulations allow taxpayers to use the greater of the safe harbor percentage noted above (20 percent of worldwide assets financed by third-party debt and 20 percent of CFC assets funded through related person indebtedness) or the taxpayer's actual (or allowable) base period data when calculating the relevant debt-to-asset ratio.
The weekly benefit amounts will be computed at 1/65 of total wages in the two highest quarters of the base period and onehalf of the total wages during the third highest quarter.
to qualify for benefits, an individual must earn 37 times the weekly benefit amount and have wage credits in two quarters of the base period. To qualify for benefits in a second benefit year, an individual must have carried wages of six times the weekly benefit amount.
The base period may be defined as the last four quarters if the first four out of the last five quarters are not used.
The qualifying requirement will be 17 weeks of employment in the base period. For benefit purposes, each employer will be required to file a quarterly wage report on each employee.