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The Distributional Impact Of 1981 And 1982 Federal Income Tax Legislation: Which Farmers Benefit?

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  • Lowenberg-DeBoer, James
  • Boehlje, Michael

Abstract

Simulation was used to analyze the distribution of benefits from the 1981 and 1982 federal income tax legislation for farm types that exhibit various tax characteristics. The results indicate that distributional effects are largely attributable to the reduced progressivity of the tax rate schedule. The largest farms benefited relative to the smaller farms of all farm types. Intensive livestock farms and producers of perennial crops experience additional benefits relative to other farm types primarily because of the large reduction in useful life for tax purposes of specialized livestock facilities, orchards, and vineyards.

Suggested Citation

  • Lowenberg-DeBoer, James & Boehlje, Michael, 1987. "The Distributional Impact Of 1981 And 1982 Federal Income Tax Legislation: Which Farmers Benefit?," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 16(1), pages 1-10, April.
    • Handle: RePEc:ags:nejare:28892
    DOI: 10.22004/ag.econ.28892
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    References listed on IDEAS

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    1. John R. Brake, 1968. "Firm Growth Models often Neglect Important Cash Withdrawals," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 50(3), pages 769-772.
    2. Michael Boehlje & Hoy Carman, 1982. "Tax Policy: Implications for Producers and the Agricultural Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(5), pages 1030-1038.
    3. Richardson, James W. & Nixon, Clair J., 1983. "Selecting Among Alternative Depreciation Methods: A Stochastic Dominance Approach," 1983 Annual Meeting, July 31-August 3, West Lafayette, Indiana 279113, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Richardson, James W. & Nixon, Clair J., 1984. "The Effects Of The 1980, 1981, And 1982 Tax Laws On Texas Rice Farmers," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 16(1), pages 1-8, July.
    5. Reinders, David Lee, 1983. "The role of inter vivos financing in the intergenerational transfer of the corporate farm under uncertainty," ISU General Staff Papers 198301010800008688, Iowa State University, Department of Economics.
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    Agricultural Finance; Public Economics;

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