Farming the Tax Code: The Impact of High Marginal Tax Rates on Agricultural Tax Shelters

James E. Long

American Journal of Agricultural Economics, 1990, vol. 72, issue 1, 1-12

Abstract: Surprisingly little scholarly work has examined the practice of “farming the tax code,” in which accounting losses on agricultural investments are used to shelter other income from taxation. Economic theory suggests that the amount of investment in agricultural tax shelters is positively related to the marginal tax rate. This hypothesis is empirically investigated using a sample of federal individual income tax returns filed for 1983. Both the probability of reporting a farm tax loss and the amount of farm losses are increased by a rise in the marginal tax rate, especially among upper income taxpayers.

Date: 1990
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://hdl.handle.net/10.2307/1243140 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:72:y:1990:i:1:p:1-12.

Access Statistics for this article

American Journal of Agricultural Economics is currently edited by Madhu Khanna, Brian E. Roe, James Vercammen and JunJie Wu

More articles in American Journal of Agricultural Economics from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().