The potential income tax cash would-be ineffective to compensate into the money loss from the maize growers

The potential income tax cash would-be ineffective to compensate into the money loss from the maize growers Macmillan Degree, Nyc assumptions. Susceptible to the fresh new restrictions of the investigation, the results frequently suggest that a ten% VAT on the manure often biguously increase marginal costs and depress maize manufacturing of the twenty four%. On the other hand, a good 10% fertilizer subsidy wil dramatically reduce limited rates of the 17%, increase fertilizer request from the 22.4% and you can grow maize supply because of the twenty seven%. Maize farmers create feel an increase inside internet funds around 30% along the case versus an excellent subsidy. New corresponding subsidy pricing could well be 6% the fresh new funds acquire by producers. These types of prices will be utilized in policy studies to compare that have the benefits of others and you can/and/or costs away from almost every other tax funds supplies. Sources Akridge, J.T., and you will T.W. […]