Simulation was used to analyze the distribution of benefits from the 1981 and 1982 federal income tax legislation for farm types that exhibit various tax characteristics. The results indicate that distributional effects are largely attributable to the reduced progressivity of the tax rate schedule. The largest farms benefited relative to the smaller farms of all farm types. Intensive livestock farms and producers of perennial crops experience additional benefits relative to other farm types primarily because of the large reduction in useful life for tax purposes of specialized livestock facilities, orchards, and vineyards.


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