摘要：Proposals to replace the existing Federal income tax with either a flat taxon income or a Federal retail sales tax would represent a dramatic shift inFederal tax policy. Following a transition period, farmers would likelyexperience a reduction in compliance costs due to reduced tax complexity.However, a revenue neutral, single-rate consumption tax would likely beless progressive than the current system, shifting the tax burden fromhigher income to middle and lower income farmers. The indirect effects ofsuch a dramatic shift in tax policy on interest rates, asset values, andincentives to invest in farming are likely to be of greater importance thanthe impact on Federal tax payments for many farmers.
