244 MISC. PUBLICATION 218, U. S. DEPT. OF AGRICULTURE 
TaBLE 97.—Financial rotation, initial forest value, and tax ratio under the property 
tax for jack pine in the Lake States } 
GOOD SITE 
Planting Natural regeneration 
Tax rate | - iy . “3 
: : nitial for- las : nitial for- 
rotation | est value | Taxratio| mene est value | Taxratio 
| per acre per acre 
Years | Dollars | Percent | Years Doliars | Percent 
LO percent 222) S628 oi See ee 30 4. 60 | 41 | 30 6. 40 40 
DIG PERCE ES eee tere ee ees eee 30 2.10 73 29 | 3. 10 71 
S{OIDELCeN tt eee ne es wee Se ae 30 oa es ler(t) 78 28 2. 60 75 
MEDIUM SITE 
IO PerCen bese 39 2. 00 ela2 32 3. 30 44 
2:6 percent kes Bee See Sa ee rt ae 34 - 50 87 30 1. 40 76 
3:0) Dercen Gat se. ee ee eee 34 . 30 92 30 1.10 81 
POOR SITE 
LO percent ee eee | 45 | (?) 175 40 0. 70 67 
2:6 PCLCEN Gan ek ees eee eee 40 | (*) 476 39 (2) 113 
3 Oipercent 2 ake oe nee eae ee 40 | (2) 496 38 (2) 121 
1 Assumptions and method of computation are described in the text. Interest rate used, 3 percent. 
3 Negative. 
At the average prevailing tax rates and with the other assumed 
expenses and yields the planting of jack pine at $4 per acre would not 
return 3 percent, even if forest land could be obtained without charge. 
The growing of natural stands on good and medium sites would yield 
a 3-percent return under the assumed conditions if such sites could 
be bought for not more than $3 and $1, respectively. This compara- 
tively poor showing is of course partially due to the very low stumpage 
price and to the fact that the same price was used for all age classes 
rather than one increasing with age, as in New Hampshire and North 
Carolina. With better prices for jack pine wood, either because of 
exceptional accessibility or improvement in the market for this 
species, substantially larger yields than the above might be obtained. 
Under all of the different assumptions illustrated the tax ratios are 
very high. 
CERTAIN OTHER CLASSES OF PROPERTY 
A comparison between the ratios of taxes to income of forests, as 
developed above, and those for other classes of property will give some 
idea of the relative burden of taxes on forests where long-deferred 
yield is necessary. 
In the United States as a whole the average ratio of taxes to 
national income for the period 1926 to 1930 has been estimated at 
12 percent (3, p. 85). 
Table 98 shows by industrial groups the net income, excluding tax- 
exempt interest but including taxes and interest paid; all taxes except 
the Federal income tax; and the ratio of taxes to net income or tax 
ratio. These tax ratios are somewhat larger than they would have 
been if it had been possible to include only property taxes. 
