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The Distributional Impact of 1981 and 1982 Federal Income Tax Legislation: Which Farmers Benefit?

Published online by Cambridge University Press:  10 May 2017

J. Lowenberg-DeBoer  and
Michael Boehlje
J. Lowenberg-DeBoer
Affiliation:
Department of Agricultural Economics, Purdue University, West Lafayette, Indiana
Michael Boehlje
Affiliation:
Department of Agricultural and Applied Economics, University of Minnesota, St. Paul, Minnesota
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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.

Type
Research Article
Information
Northeastern Journal of Agricultural and Resource Economics , Volume 16 , Issue 1 , April 1987 , pp. 44 - 53
Copyright
Copyright © 1987 Northeastern Agricultural and Resource Economics Association 

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