Acta Univ. Agric. Silvic. Mendelianae Brun. 2019, 67(3), 839-851 | DOI: 10.11118/actaun201967030839

Comparison of Tax Burden on Farms in Selected US States

Lukáš Moravec, Jana Hinke, Gabriela Kukalová, Adéla Šlapáková
Department of Trade and Finance, Faculty of Economics and Management, Czech University of Life Sciences Prague, Kamýcká 129, 165 21 Prague, Czech Republic

This paper deals with the comparison of the tax burden of selected US States within the framework of two taxes - income tax and sales tax. When drawing up this issue, the authors were led by the idea that there may be significant differences among particular states, so they chose as the objective to identify fiscally attractive areas. The quantification research of tax burden on model farms in 12 US states - Corn Belt was carried out in order to meet the objective. To the three groups of taxpayers (single, married and head of household) were applied federal and state taxation on natural persons income, social security and health insurance contributions, and sales tax. The cross-sectional analysis is focused on 2012. The results of the comparative analysis led to the identification of fiscally attractive areas of agribusiness (South and North Dakota - regardless of the taxpayer status, Ohio) and to the confirmation of the assumption that there are significant differences between the states surveyed - particularly as regards the sales tax where a deviation of tax liability from the lowest tax burden of 74.99% was identified.

Keywords: agriculture, U.S. tax system, income tax, self employment tax, sales tax
Grants and funding:

This paper is a partial result of the research project No. 20181013 - Tax Laboratory Pilot Project Utilizing the Human Behavior Research Unit of FEM CULS Prague, supported by the Internal Grant Agency (IGA) of Faculty of Economics and Management, CULS Prague.

Received: September 3, 2018; Accepted: May 17, 2019; Published: June 27, 2019  Show citation

ACS AIP APA ASA Harvard Chicago IEEE ISO690 MLA NLM Turabian Vancouver
Moravec, L., Hinke, J., Kukalová, G., & Šlapáková, A. (2019). Comparison of Tax Burden on Farms in Selected US States. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 67(3), 839-851. doi: 10.11118/actaun201967030839
Share...
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. BECKMAN, J., GOPINATH, M. and TSIGAS, M. 2018. The Impacts of Tax Reform on Agricultural Households. American Journal of Agricultural Economics, 5(100): 1391-1406. DOI: 10.1093/ajae/aay038 Go to original source...
    2. BERVIDOVÁ, L. and VANČUROVÁ, P. 2010. Public Sector Economics (Ekonomika veřejného sektoru). Prague: PEF ČZU.
    3. BIELIK, P. 2014. Agricultural development and government expenditures in the new EU countries. Abstract, 8: 21-35. Go to original source...
    4. CZECH TRADE. 2017. United States: Trade and economic cooperation with the Czech Republic [in Czech: Spojené státy americké: Obchodní a ekonomická spolupráce s ČR]. BusinesInfo.cz. [Online]. Available at: http://www.businessinfo.cz/cs/clanky/spojene-staty-americke-ekonomicka-charakteristika-18548.html#sec5 [Accessed: 2017, December 16].
    5. DAS, B. R. and RAINEY, D. V. 2010. Agritourism in the Arkansas Delta Byways: Assessing the Economic Impacts. International Journal of Tourism Research, 12(3): 265-280. DOI: 10.1002/jtr.752 Go to original source...
    6. EGBENDEWE-MONDZOZO, A., SWINTON, S. M., IZAURRALDE, R. C. et al. 2013. Maintaining environmental quality while expanding biomass production: Sub-regional US policy simulations. Energy Policy, 57: 518-531. DOI: 10.1016/j.enpol.2013.02.021 Go to original source...
    7. ENTREPRENEUR MEDIA. 2017. Sole Proprietorship Definition. Entrepreneur. [Online]. Available at: https://www.entrepreneur.com/encyclopedia/sole-proprietorship [Accessed: 2017, December 08].
    8. GEBELTOVÁ, Z. and PLETICHOVÁ, D. 2012. Proposal of the Creation of Resources for the Maintenance of the Production Capability of the Agricultural Land Fund by Way of Tax Savings. Agris on-line Papers in Economics and Informatics, 4(Special): 37-48.
    9. GOLUB, A., HERTEL, T., LEE, H-L. et al. 2009. The opportunity cost of land use and the global potential for greenhouse gas mitigation in agriculture and forestry. Resource and Energy Economics, 31(4): 299-319. DOI: 10.1016/j.reseneeco.2009.04.007 Go to original source...
    10. HOPPE, R. A. and MACDONALD, J. M. 2013. Updating the ERS farm typology. ERS U. S. Department of Agriculture. [Online]. Available at: http://www.ers.usda.gov/media/1070858/eib110.pdf [Accessed: 2017, December 08]. Go to original source...
    11. INTERNAL REVENUE SERVICE. 2013. Self-Employment Tax (Social Security and Medicare Taxes). IRS. [Online]. Available at: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employment-Tax-,Social-Security-and-Medicare-Taxes [Accessed: 2017, December 05].
    12. LÁCHOVÁ, L. 2007. Tax systems in a global Word [in Czech: Daňové systémy v globálním světě]. Prague: Aspi.
    13. NERUDOVÁ, D. 2009. US tax system - part 1 [in Czech: Daňový systém USA - 1. část]. Daně a právo v praxi, 9: 41-44.
    14. O'DONOGHUE, E. J. 2011. The changing Organization of U. S. Farming. U. S. Department of Agricultre, Economic Research Service. [Online]. Available at http://www.ers.usda.gov/publications/eib-economic-information-bulletin/eib88.aspx [Accessed: 2018, February 03].
    15. SMITH, A. 2001. An inquiry into the nature and causes of the wealth of nations [in Czech: Pojednání o podstatě a původu bohatství národů]. Prague: Liberální institut.
    16. SOUKUP, A. and ŠRÉDL, K. 2011. Space Model in Monopolistic Competition - Analysis of Iternational Trade. Agricultural Economics, 4: 169-174. Go to original source...
    17. STIGLITZ, J. E. 2000. Economics of the public sector. New York: Norton.
    18. ŠIROKÝ, J. et al. 2008. Tax theories - with practical application [in Czech: Daňové teorie - s praktickou aplikací]. Prague: C. H. Beck.
    19. U. S. DEPARTMENT OF AGRICULTURE. 2007. Census of Agriculture. USDA. [Online]. Available at: http://www.agcensus.usda.gov/Publications/2007/Full_Report/usv1.pdf [Accessed: 2018, January 18].
    20. U. S. TAX CENTER. 2015. Federal Tax Rates, Personal Exemptions, and Standard Deductions. IRS.com. [Online]. Available at: https://www.irs.com/articles/2015-federal-tax-rates-personal-exemptions-and-standard-deductions [Accessed: 2018, January 25].
    21. ZAKARIA, F. 2012. U.S. tax code too progressive, rich pay more than in other countries. Media Research Center. [Online]. Available at: http://www.newsbusters.org/blogs/nb/noel-sheppard/2012/03/25/fareed-zakaria-shocker-us-tax-code-too-progressive-rich-pay-more [Accessed: 2018, January 16].

    This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content