This analysis used simulation to compare the cost of intergenerational transfer of farm estates under the pre-1981 tax rules and the Economic Recovery Tax Act of 1981 (ERTA) provisions. ERTA reduces transfer costs for almost all the estates considered. Large estimates tend to benefit more than...

Simulation was used to analyze the distribution of benefits from the 1981 and 1982 federal income tax legislation for farm types that exhibit various tax characteristics. The results indicate that distributional effects are largely attributable to the reduced progressivity of the tax rate...