FOREST TAXATION IN THE UNITED STATES 585 
the plan would be small and may be disregarded in view of the difh- 
culty of separately measuring unanticipated gains and losses when 
they occur in the same year. 
Strict theory would require also the recognition of the fact that failure to realize 
the normal expected value increment is really a loss, which would require that 
the loss, as determined above, be augmented by the amount of the normal expected 
value increment. Here also the amount involved is probably not sufficient to 
warrant the administrative complications involved in the theoretical adjustment. 
The practical operation of this feature of the plan may be illus- 
trated by continuing the mathematical example for a third year. 
There was no yield in this year. Fire destroyed timber, as a result 
of which the assessed value on January 1, 1935, was $850. The loss 
is the difference between $1,100 (the 1934 assessed value) and $850, 
or $250. The adjusted value increment must therefore be reduced 
250 : : 
by 1.100 The tax rate in 1935 is 2 percent. 
’ e e 
The tax payable in 1935 is calculated as follows: 
J NISSEN Key LILO Hs ea AN ON MER SK np AO eg $850. 00 
Deduction: 
Adjusted value increment accumulated to the beginning of 
TES ea ae ag ih uae ei AU la ia ee ey 94. 10 
Adjusted value increment of 1934: 
Interest on assessed value of 1934 ($1,100)______ $33. 00 
Clee sinter pales Aci a et aL NS Ce A Va 15. 09 
48. 09 
J erste nya ole han. UG By: SN a can Sa a i 0. 00 
48. 09 
COE ial ih SAN a eR MMe RON RUN Ee AS Ta seg aS 142. 19 
Wess 250/100! ofthe totale spe a NLR ares hd EE eee BA, BY 
Difference, being the adjusted value increment accumu- 
latede to nthe oerinminime) of 193 be a8 ee eB ne Dk 109. 87 
IAG MStedi tax ase lol mlOs tz wk aietuliy AL Ny Ne Ce I ome) ENT 740. 13 
Pa xannayl OS Sy Aty2moencemtmed sil mei me Ne ORI asl Oy ORNL ay Bei ka en Nad All Gi 14. 80 
To illustrate the limitation of the total deduction to a quantity not 
less than 0 in case of a negative increment, the example may be con- 
tinued for a fourth year. Let it be assumed that there was a yield of 
$250 in 1935. The assessed value on January 1, 1936, was $650. 
The tax rate in 1936 is 2.5 percent. The tax payable in 1936 is cal- 
culated as follows: 
INSSCSSE CUM UC BNO oy inne eye Ua are ater CONC SNR Een ag bcos pada ay te Lob $650. 00 
Deduction: 
Adjusted value increment accumulated to the beginning of 
DAS) a ld eh Na a eal SS a A 109. 87 
Adjusted value increment of 1935: 
Interest on assessed value of 1935 ($850)________ $25. 50 
Maxesiitasl OS sy ww Le ES rau MOM DL De OEE NE 14. 80 
40. 30 
WGessy. viel ainimyshO Sy ate mare ie eur une UNI a SNA NEON 250. 00 
— 209. 70 
Total, being the adjusted value increment accumulated 
tonthe bepimiaingoOr MOS GUM ae Le Mee NU Le ew 2 0. 00 
ACHE LEO GUTS ASCrl Yes meme amma aR TN wade Ne ye ig la Aly .- 650. 00 
axa LOS Grate Ze O WECLCC Mile meen manne iy MUNI WARN N AOTC i Rg 16. 25 
