Hostname: page-component-7bb8b95d7b-wpx69 Total loading time: 0 Render date: 2024-09-13T18:48:50.643Z Has data issue: false hasContentIssue false
  • English
  • Français

The Significance of Capital Gains to Farmers and Some Effects of Eliminating Their Preferred Income Tax Treatment*

Published online by Cambridge University Press:  28 April 2015

W. Fred Woods  and
Charles A. Sisson
W. Fred Woods
Affiliation:
NEAD, ERS, USDA
Charles A. Sisson
Affiliation:
NEAD, ERS, USDA
Get access Rights & Permissions [Opens in a new window]

Extract

The American experience with income taxes began with the Act of 1913, but it was not until 1921 that capital gains were identified separately and taxed differently from other sources of income. This fundamental revision of the income tax was justified on equity grounds; proponents of the change argued that it was unfair to tax income accrued over many years in the year that income was realized [6, p. 192].

The present capital gains provisions have been and are now—strongly attacked alternately as being too lenient and too strict [5, p. 184]. Unfortunately, this symmetry in the opposition to present capital gains treatment does not imply the present provisions are near the optimum.

Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 7 , Issue 1 , July 1975 , pp. 145 - 151
Copyright
Copyright © Southern Agricultural Economics Association 1975

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

*

Paper presented at the Southern Agricultural Economics Association annual meeting, New Orleans, February 2-5, 1975.

References

[1] Calkins, Hugh. “Tax Sheltering in Perspective,” Taxes—the Tax Magazine, Vol. 51, No. 12, December 1973, pp. 785–769.Google Scholar
[2] Carlin, Thomas A., and Woods, W. Fred. “Tax Loss Farming,” ERS-546, U.S. Department of Agriculture, Washington, April 1974.Google Scholar
[3] Committee on Ways and Means, “General Tax Reform: Part 6” (93rd Congress, 1st Session), March 21, 22, 1973.Google Scholar
[4] Darrell, Norris. “Taxing Capital Gains,” Tax Review, Vol. XXXIV, No. 8, August 1973, pp. 29–32.Google Scholar
[5] Goode, Richard. The Individual Income Tax, The Brookings Institution, Washington, 1964.Google Scholar
[6] Grove, Harold M. Financing Government, 6th edition, Holt, Rinehart and Winston, , New York, 1964.Google Scholar
[7] Internal Revenue Code of 1954, as amended.Google Scholar
[8] Musgrave, Richard A. The Theory of Public Finance, McGraw-Hill Book Co., New York, 1959.Google Scholar
[9] O'Byrne, John C. Farm Income Tax Manual, 4th edition, The Allen Smith Company, Indianapolis, 1970.Google Scholar
[10] Woods, W. Fred. “Tax Loss Farming,” Agricultural Finance Review, Vol. 34, July 1973, pp. 24–30.Google Scholar