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Effects of Federal Income Taxes on Cattle‐Ranch Prices *
Author(s) -
Martin William E.,
Gatz Jimmie R.
Publication year - 1968
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1237870
Subject(s) - economics , agricultural economics , production (economics) , income tax , gross income , tax deferral , public economics , state income tax , tax reform , macroeconomics
Past studies have indicated that returns from beef production are not enough to justify economically the current prices of cattle ranches. It has been hypothesized that federal income taxes influence current ranch prices. Standard economic budgets are converted into tax budgets for use in testing this hypothesis. The procedure and assumptions involved in the analysis are briefly listed. Although tax savings can be substantial under specific assumptions, the general effect of ranches as tax shelters cannot be large enough to affect greatly the general level of ranch prices.