The Willamette River Case: Gains 



261 



in Table 51) indicates the distribution of the gains from accelerated 

 amortization. In order to facilitate the showing of net income 

 transfers interregionally, we also use data (from Table 41) showing 

 the distribution of increased general tax liabilities by regions, asso- 

 ciated with the need to cover out of public revenues the costs of 

 the rapid amortization program. We assume that the internal rate 

 of return for funds invested in the expansion of facilities is such 

 that the annual gains to common stock owners would be equal to 

 the $250,000 estimated as the increased cost to the general public 

 of this amortization policy. Applying both the per cent distribu- 

 tion of gains by regions and the per cent distribution of the 

 increased tax burdens by regions, as weights for allocating the 

 costs and gains, we can derive the annual net income transfers 

 among regions corresponding to the tax amortization policy in this 

 instance. This is shown in the last column in Table 57. 



Because of the preponderance of stock ownership in the New 

 England and Middle Atlantic states, these regions are the gainers 

 from the tax amortization policy — even though the Middle Atlantic 

 states contribute heavily in meeting tax requirements. The Pacific 

 Coast region, in which the project is located, would also enjoy some 

 net gain. All other regions would lose in the income transfer, with 



TABLE 57. Percentage Distribution of Gains and Costs of 

 Accelerated Amortization by Regions, 

 and Net Annual Income Transfers 



' Using weights derived from tax Model A. 



'' Discrepancy in net of transfers caused by rounding. 



