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Some Potential Effects of Changing From a Progressive to a Flat Income Tax Rate Structure

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  • Reid, Donald W.
  • Skees, Jerry R.

Abstract

The impact on farms caused by changing the tax rate structure from progressive to flat are conceptualized in a general sense. Results from a Monte Carlo simulation model indicate that quite significant effects on farms could occur due to rate structure changes. Larger farms would be favored relative to small farms in terms of wealth. However, the variation in after-tax incomes would increase relatively more for the larger farms.

Suggested Citation

  • Reid, Donald W. & Skees, Jerry R., 1985. "Some Potential Effects of Changing From a Progressive to a Flat Income Tax Rate Structure," 1985 Annual Meeting, August 4-7, Ames, Iowa 278654, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea85:278654
    DOI: 10.22004/ag.econ.278654
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    References listed on IDEAS

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    2. Hoy F. Carman, 1972. "Tax Loss Agricultural Investments after Tax Reform," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 54(4_Part_1), pages 627-634.
    3. King, Robert P., 1979. "Operational Techniques for Applied Decision Analysis Under Uncertainty," AAEA Fellows - Dissertations and Theses, Agricultural and Applied Economics Association, number 181951, December.
    4. Donald W. Reid & Garnett L. Bradford, 1983. "On Optimal Replacement of Farm Tractors," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(2), pages 326-331.
    5. Gerald W. Dean & Harold O. Carter, 1962. "Some Effects of Income Taxes on Large-Scale Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 44(3), pages 754-768.
    6. Ronald D. Kay & Edward Rister, 1976. "Effects of Tax Depreciation Policy and Investment Incentives on Optimal Equipment Replacement Decisions: Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 58(2), pages 355-358.
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    Keywords

    Agricultural Finance; Farm Management;

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