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The Effect of Tax Reform on the Dairy Farmer

Published online by Cambridge University Press:  10 May 2017

E.L. LaDue  and
W.R. Bryant
E.L. LaDue
Affiliation:
Department of Agricultural Economics, Cornell University
W.R. Bryant
Affiliation:
Department of Agricultural Economics, Cornell University
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Extract

Recent Congressional testimony has focused on the desirability of eliminating certain income tax “preferences” that are important in agriculture. Specifically, separate proposals have urged that capital gains treatment pertaining to livestock, vineyards and orchards be eliminated and that the cash method of tax accounting no longer be permitted. The justification for these proposals is based on the continued activity of wealthy individuals in tax loss or tax sheltered farming, despite provisions of the Tax Reform Act of 1969 to limit such ventures. Furthermore, it is argued that these tax preferences result in a greater subsidy to the high tax bracket individual than low tax bracket individual and thus place low income bonafide farmers at a competitive disadvantage which could force them out of business.

Type
Research Article
Information
Journal of the Northeastern Agricultural Economics Council , Volume 2 , Issue 2 , October 1973 , pp. 80 - 88
Copyright
Copyright © Northeastern Agricultural and Resource Economics Association 

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