FOREST TAXATION IN THE UNITED STATES 611 
soever. Without this limitation, the plan can be justified only on 
grounds of a subsidy to encourage forestry. Therefore, it cannot 
be recommended as a satisfactory solution of the forest-tax problem. 
APPLICATION OF FOREST-TAX PLANS TO SECOND-GROWTH 
FORESTS 
The character and effects of the suggested plans for making changes 
in the tax system relating especially to forests will be better under- 
stood if the application of these plans to certain hypothetical second- 
growth forests is studied. Such applications are shown in tables 
159-162. Tables 159 and 160 have been derived by the use of 
certain formulas. Tables 161 and 162 are exactly similar to tables 
159 and 160 except that the taxes, land values, and items of income 
and expense used in tables 159 and 160 were divided by 2,500 in order 
to give corresponding tables which may be interpreted as relating 
to areas of one acre. 
TaBLE 159.—Special forest-laz plans compared with the property tax and income 
tax, for even-aged forests managed on various rotations, and yielding a net return 
of 3 percent; land value, under the income tax, $7,500 
PROPERTY-TAX RATE, 1 PERCENT; INCOME-TAX RATE, 25 PERCENT 
Forest A rotation 30 | Forest C, rotation 45 | Forest E, rotation 60 
years; yield, $37,560 | years; yield, $72,176 | years; yield, $126,943 
Plan 
Tax | Land Tax | Land Tax | Land 
Taxes ratio | value Taxes ratio | value Taxes ratio | value 
Per- Per- Per- 
Dollars| cent | Dollars| Dollars| cent | Dollars| Dollars| cent \Dollars 
IPRO pet yutaxe ss eae oe ee 9, 186 44 | 5,629 | 22,690 54 | 4,392 | 48, 270 64 | 3,072 
Income (net yield) tax_____________- 6, 515 31 | 7,500 | 14, 040 34 | 7,500 | 26,610 35 | 7, 500 
Special forest tax: 
Adjusted property tax______-___ 6, 515 31 | 7,500 | 14, 040 34 | 7,500 | 26, 610 BH I B00) 
Deferred timber tax____-______- 7, 688 37 | 6,677 | 17,100 41 | 6,402 | 33,000 44 | 6,195 
Differential timber tax, reduc- 
tion factor 50 percent_...___--_- 6, 812 33 | 7,291 | 16, 050 36 | 6,779 | 33, 250 44 | 6,144 
Immature-timber exemption____| 4, 305 21} 9,048 | 8,727 21 | 9,412 | 15,820 21 | 9,705 
Yield tax, rate 10 times prop- 
enbystaxrate een 2 sas 7, 122 34 | 7,075 | 14, 140 34 | 7,465 | 25, 350 34 | 7,759 
PROPERTY-TAX RATE, 2 PERCENT; INCOME-TAX RATE, 40 PERCENT 
Forest B rotation 30 | Forest D rotation 45 | Forest F, rotation 60 
years; yield, $44,075 years; yield, $86,220 | years; yield, $153,553 
Plan a SR ee aan | et Mee ee wat ree oe we 
Tax | Land Tax | Land Tax | Land 
Taxes ratio | value Taxes ratio | value Taxes ratio | value 
Per- Per- Per- 
Dollars| cent | Dollars| Dollars| cent | Dollars| Dollars| cent | Dollars 
IPrOpert yataxce see oe 18, C00 66 | 4,015 | 43, 430 78 | 1,985 | 89, 690 88 44 
Income (net yield) tax______._.____- 13, 030 48 | 7,500 | 28, 090 50 | 7,500 | 53, 220 52 | 7, 500 
Special forest tax: 
Adjusted property tax__.______- 13, 030 48 | 7,500 | 28, 090 50 | 7, 500 | 538, 220 52 | 7,500 
Deferred timber tax___-________ 15, 150 55 | 6,018 | 33, 420 60 | 5,584 | 64, 100 63 | 5, 277 
Differential timber tax, reduc- 
tion factor 50 percent_-_-______- 13, 990 51 6, 826 | 32, 720 59 | 5,835 | 66, 950 66 | 4,694 
Immature-timber exemption____| 9, 493 35 | 9,977 | 19, 580 35 | 10, 560 | 35, 960 35 | 11,030 
Yield tax, rate 10 times prop- 
ertyataxrates=.2 2 14, 780 54] 6,272 | 29, 930 54] 6,839 | 54,390 DouleiZoL 
1 Assumptions and formulas are described in the text. 
