TY  - EJOUR
AB  - This paper examines the effects of income tax rates and member risk preferences on the distribution of patronage income in a local agricultural cooperative. The paper uses a modified mean-variance model to provide some discussion points on how to consider the interaction of tax and member risk preferences on maximizing member benefits. Our results suggest that qualified earnings distributions should be relatively low under current tax policy conditions, and consideration should be given to using non-qualified distributions. Also, optimal patronage income distributions are more affected by significant changes in member risk preferences than significant changes in taxes.
AU  - Russell, Levi A.
AU  - Briggeman, Brian C.
DA  - 2014
DA  - 2014
DO  - 10.22004/ag.econ.244024
DO  - doi
EP  - 49
EP  - 27
ID  - 244024
JF  - Journal of Cooperatives
KW  - Demand and Price Analysis
KW  - Public Economics
KW  - Cooperatives
KW  - Finance
KW  - Tax Policy
KW  - Risk Preferences
KW  - Capital Structure
L1  - https://ageconsearch.umn.edu/record/244024/files/29-02.pdf
L2  - https://ageconsearch.umn.edu/record/244024/files/29-02.pdf
L4  - https://ageconsearch.umn.edu/record/244024/files/29-02.pdf
LA  - eng
LK  - https://ageconsearch.umn.edu/record/244024/files/29-02.pdf
N2  - This paper examines the effects of income tax rates and member risk preferences on the distribution of patronage income in a local agricultural cooperative. The paper uses a modified mean-variance model to provide some discussion points on how to consider the interaction of tax and member risk preferences on maximizing member benefits. Our results suggest that qualified earnings distributions should be relatively low under current tax policy conditions, and consideration should be given to using non-qualified distributions. Also, optimal patronage income distributions are more affected by significant changes in member risk preferences than significant changes in taxes.
PY  - 2014
PY  - 2014
SP  - 27
T1  - Distributing Patronage Income Under Differing Tax Rates and Member Risk Preferences
TI  - Distributing Patronage Income Under Differing Tax Rates and Member Risk Preferences
UR  - https://ageconsearch.umn.edu/record/244024/files/29-02.pdf
VL  - 29
Y1  - 2014
T2  - Journal of Cooperatives
ER  -