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The Tax Reform Act of 1986: Its Impact on Pennsylvania Farmers

Published online by Cambridge University Press:  10 May 2017

William Grisley  and
Larry C. Jenkins
William Grisley
Affiliation:
The Pennsylvania State University
Larry C. Jenkins
Affiliation:
The Pennsylvania State University
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Abstract

The Tax Reform Act of 1986 was studied to determine its short-run impact on Pennsylvania farmers. For the 3,059 farms studied, the average increase in total tax obligation resulting from the TRA of 1986 was $446 per farm, or a 48 percent increase in federal income taxes actually paid in 1984. Differences in impact were found across farms categorized by commodity type. Egg producers were most severely impacted, while beef cattle producers least affected. In general, the increase in adjusted gross income was due to the loss of 60 percent exclusion on capital gain income.

Type
Articles
Information
Northeastern Journal of Agricultural and Resource Economics , Volume 16 , Issue 2 , October 1987 , pp. 84 - 92
Copyright
Copyright © 1987 Northeastern Agricultural and Resource Economics Association 

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Footnotes

Seniority of authorship is not assigned. Journal Series Article No. 7735 of the Pennsylvania Agricultural Experiment Station.

References

Davenport, C., Boehlje, M. D. and Martin, D. B. H. The Effects of Tax Policy on American Agriculture. Washington, D.C., E.R.S., U.S.D.A., Agric. Econ. Report No. 480, 1982.Google Scholar
Durst, R. Agricultural Outlook. Washington, D.C., E.R.S., U.S.D.A., November, 1986.Google Scholar
LeBlanc, M. and Hrubovcak, J. “The Effects of Tax Policy on Aggregate Agricultural Investment.” American Journal of Agricultural Economics. 68 (1986):767–777.Google Scholar
Pechman, J. A. and Okner, B. A. Who Bears the Tax Burden? Washington, D.C.: The Brookings Institution, 1974.Google Scholar