The Effects of a Federal Tax Reform on the US Timber Sector

Resources for the Future Discussion Paper 15-37

41 Pages Posted: 19 Aug 2015

See all articles by Roger A. Sedjo

Roger A. Sedjo

Resources for the Future

Brent Sohngen

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics

Date Written: August 8, 2015

Abstract

Under discussion in the US Congress is the desirability of reforming much of the US federal tax code. Recent proposals include lowering rates and broadening the tax base by, among other things, eliminating tax expenditure write-offs, preferences, and incentives. This study focuses on tax changes that might apply to the timber sector. The study looks at the effects of ending the capital gains treatment of timber, eliminating the timberland ownership form known as a real estate investment trust (REIT), restricting the deductibility of current management costs, and repealing the deductability of reforestation costs. Additionally, because our study focuses exclusively on the timber sector, it treats the rest of the federal tax system as unchanged except in one scenario, where we introduce lower corporate and individual income tax rates. We examine these changes using the Timber Supply Model, which projects their effects on timber sector investment, growing stock, harvests, prices, and international trade (net imports).

Keywords: timber, forests, tax reform, investment, harvest, timberlands, forestlands

JEL Classification: Q23, Q24, C51, H25

Suggested Citation

Sedjo, Roger A. and Sohngen, Brent L., The Effects of a Federal Tax Reform on the US Timber Sector (August 8, 2015). Resources for the Future Discussion Paper 15-37. Available at SSRN: https://ssrn.com/abstract=2646608 or http://dx.doi.org/10.2139/ssrn.2646608

Roger A. Sedjo (Contact Author)

Resources for the Future ( email )

1616 P Street, NW
Washington, DC 20036
United States

Brent L. Sohngen

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics ( email )

2120 Fyffe Rd
Ag Admin
Columbus, OH 43210-1067
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
35
Abstract Views
283
PlumX Metrics