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Alternative Tax Treatment of Orchard Development Costs: Impacts on Producers, Middlemen, and Consumers
Author(s) -
Carman Hoy F.,
Youde James G.
Publication year - 1973
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 - 10.2307/1238435
Subject(s) - capitalization , subsidy , liberian dollar , orchard , economics , agricultural economics , business , public economics , natural resource economics , finance , market economy , philosophy , linguistics , horticulture , biology
Present federal income tax laws allow current deduction of development costs for most orchard crops. An economic surplus framework is used to analyze the impact of cost capitalization on producers, middlemen, and consumers. Estimated net social returns per dollar of tax subsidy range from $0.12 to $15.00 for five California orchard crops under present tax treatment.