Language:

Do Most U.S. Farms Really Lose Money? Taxation and Farm Income Underreporting

Journal of agricultural and applied economics, 2019-11, Vol.51 (4), p.646-663 [Peer Reviewed Journal]

Full text available

Citations Cited by

Title:
Do Most U.S. Farms Really Lose Money? Taxation and Farm Income Underreporting
Author: Key, Nigel
Subjects: Agriculture ; Bias ; Capital depreciation ; Cost control ; Economic models ; Estimates ; Family income ; Farm income ; Farmers ; Farms ; Federal agencies ; Fiscal policy ; Households ; Income ; Income taxes ; Labor supply ; Losses ; Noncompliance ; Sole proprietorships ; Tax evasion ; Tax rates ; Taxation ; Wages & salaries
Is Part Of: Journal of agricultural and applied economics, 2019-11, Vol.51 (4), p.646-663
Description: Abstract This article explores whether income underreporting for tax purposes can explain why the majority of U.S. farmers earn low or negative net farm income. Using 10 years of U.S. Department of Agriculture farm-level data, the extent of underreporting is estimated by exploiting the fact that farm households face an incentive to underreport farm income that varies with their reported off-farm income. Results indicate that 39% of total farm income is underreported. For large farms, the results imply a substantial discrepancy between reported and earned farm income. For small-scale operations, underreporting reduces but does not eliminate the gap between farm and off-farm wages.
Publisher: Baton Rouge: Cambridge University Press
Language: English
Identifier: ISSN: 1074-0708
EISSN: 2056-7405
DOI: 10.1017/aae.2019.26
Source: ProQuest Central
DOAJ Directory of Open Access Journals

Back to results list


INSPIRE LIBRARY - TON DUC THANG UNIVERSITY	(84-028) 37 755 057	Feedback
19 Nguyen Huu Tho St. Dist.7, HCM	thuvien@tdtu.edu.vn	Feedback

Searching Remote Databases, Please Wait