ERIC Number: ED261827
Record Type: Non-Journal
Publication Date: 1985-Aug
Reference Count: N/A
Tax Reform: Its Impact on Agriculture. Agricultural Outlook. Special Reprint.
Economic Research Service (USDA), Washington, DC.
While tax reforms proposed by Bradley-Gephart, Kemp-Kasten, and the Reagan Administration differ in specifics, all three would reduce marginal tax rates and broaden the income tax base by eliminating many of the special provisions that have crept into the system over the years--agriculture benefits from a variety of these special provisions. This report focuses on the Administration's proposal, discussing in detail significant features that would affect agriculture: reductions in individual and corporate tax rates, modifications in investment tax credit and depreciation policies, changes in the current deductibility of various development costs, restrictions on property eligible for capital gains treatment, and limits on the use of the cash method of accounting. The current law and the 3 proposed tax reform laws are compared on 12 provisions--expensing, capital gains, interest, cash accounting, development expenditures, conservation and land clearing, individual tax rates, standard deduction, personal exemption, corporate tax rates, investment tax credit, and depreciation. The final section examines four types of agricultural enterprise and compares their federal tax burden in dollar amounts under current law and the Administration's proposed reform. The hypothetical cases illustrate effects of proposed reform on orchard development, a crop farm, a dairy operation, and a hog operation. (JHZ)
Publication Type: Reports - Evaluative
Education Level: N/A
Audience: Community; Policymakers
Authoring Institution: Economic Research Service (USDA), Washington, DC.