Period Equity and Tax Averaging Schemes

The tax differential caused by variability of taxable income across tax thresholds is estimated for broadacre family farmers using individual taxable income data. Estimates of the tax differential without income averaging are compared with the tax differential under a number of alternative averaging schemes, including the current averaging scheme, modified averaging, block averaging and carry forward tax credits. Only limited evidence is available to indicate the potential tax differential borne by non-primary producers. The availability of such information would assist future analysis of comparative period inequity of farmers and others in the community subject to variable pre-tax incomes.


Subject(s):
Issue Date:
1995-04
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/12543
Published in:
Review of Marketing and Agricultural Economics, Volume 63, Number 01
Page range:
178-190
Total Pages:
13




 Record created 2017-04-01, last modified 2017-08-23

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