Differential land rent and agricultural taxation

https://doi.org/10.17221/127/2016-AGRICECONCitation:Rymanov A. (2017): Differential land rent and agricultural taxation. Agric. Econ. – Czech, 63: 421-429.
download PDF
The paper addresses the influence of various types of taxes on changes in differential (Ricardian) land rent, and the economic performance of agricultural producers. Labour and capital taxes lead to higher prices for agricultural products, causing a decrease in consumer demand and lower income for agricultural producers (mostly utilizing marginal land). A polynomial single-product model has been used to demonstrate that reducing the tax burden on agricultural producers – specifically taxes on labour and capital – will result in increases in differential land rents on the average and relatively better plots, and/or the emergence of the rent on the marginal land. Thus, substituting labour and capital taxes for land/property taxes reduces the overall tax burden of agricultural producers on marginal lands.  
Andersen F.G., Asheim L.J., Mittenzwei K., Veggeland F. (2002): Taxation of Agriculture in Selected Countries. Study of The United States, Canada, Australia, Germany, United Kingdom, Ireland, France, Switzerland and Italy with Relevance to the WTO. Norwegian Agricultural Economics Research Institute, Oslo.
Ghosh Jayati (2008): Differential and absolute land rent. The Journal of Peasant Studies, 13, 67-82  https://doi.org/10.1080/03066158508438283
Hoff K. (1991): Land taxes, output taxes, and sharecropping: was Henry George right? World Bank Economic Review, 5: 93–111.
Kennedy John James (2007): From the Tax-for-Fee Reform to the Abolition of Agricultural Taxes: The Impact on Township Governments in North-west China. The China Quarterly, 189, 43-  https://doi.org/10.1017/S0305741006000798
Mill J.S. (1848, 1909): Principles of Political Economy with some of their Applications to Social Philosophy.1st Ed. 1848, 7th Ed. 1909 Longmans, Green and Co. London. Available at http://www.econlib.org
Newbery D.M.G. (1987): Agricultural taxation: the main issues. In: Newbery D., Stern N. (eds): The Theory of Taxation for Developing Countries. Oxford University Press for the World Bank.
NIEUWOUDT W. L. (1987): TAXING AGRICULTURAL LAND. Agrekon, 26, 10-14  https://doi.org/10.1080/03031853.1987.9524098
Nitikin D., Shen C., Wang Q., Zou H. (2012): Land taxation in China: Assessment of prospects for politically and economically sustainable reform. Annals of Economics and Finance, 13: 489–528.
OECD (2013): Agricultural Policy Monitoring and Evaluation 2013: OECD Countries and Emerging Economies. OECD iLibrary.
OECD-FAO (2013): OECD-FAO Agricultural Outlook 2013–2022. OECD Publishing.
Ricardo D. (1821): On the Principles of Political Economy and Taxation. 3rd Ed. McMaster University Archive for the History of Economic Thought. Library of Economics and Liberty. Available at http://www.econlib.org
Rymanov A. (2014): Agricultural taxation and budget support in transition economies. World Applied Sciences Journal, 30: 733–737.
Skinner Jonathan (1991): Prospects for Agricultural Land Taxation in Developing Countries. The World Bank Economic Review, 5, 493-511  https://doi.org/10.1093/wber/5.3.493
Smith A. (1776, 1904): An Inquiry into the Nature and Causes of the Wealth of Nations. 1st Ed. 1776, 5th Ed. 1904 Methuen & Co., Ltd., London. Available at http://www.econlib.org
Tideman N. (1982): A tax on land is neutral. National Tax Journal, 35: 109–111.
Tsai Chi-Yuan (1982): Taxes and residential choice. Public Choice, 38, 55-72  https://doi.org/10.1007/BF00124628
van Schalkwyk H. D., van Rooyen C. J., Jooste A. (1994): POSSIBLE EFFECTS OF AN AGRICULTURAL LAND TAX IN SOUTH AFRICA. Agrekon, 33, 206-212  https://doi.org/10.1080/03031853.1994.9524785
Veeck Gregory, Shui Wei (2011): China's Quiet Agricultural Revolution: Policy and Programs of the New Millennium. Eurasian Geography and Economics, 52, 242-263  https://doi.org/10.2747/1539-7216.52.2.242
Wang Xiaxin, Shen Yan (2014): The effect of China's agricultural tax abolition on rural families' incomes and production. China Economic Review, 29, 185-199  https://doi.org/10.1016/j.chieco.2014.04.010
Weiss E. (2005): Replacing the “Combined tax on land and buildings” with a simplified “Land value tax” in the federal Republic of Germany. Geodetski Vestnik, 49: 29–34.
World Bank (2009): Belarus agricultural productivity and competitiveness impact of state support and market intervention. The World Bank Report No. 48335-BY. Available at https://openknowledge.worldbank.org/bitstream/handle/10986/18897/483350ESW0REVI110FINAL0for0printing.pdf?sequence=1
Yessengeldin B.S., Sitenko D.A., Yardyakova I.V. (2014): Peculiarities of land taxation in Kazakhstan. Actual Problems of Economics, 155: 394–400.
download PDF

© 2020 Czech Academy of Agricultural Sciences