Inflation and Present Value of Timber Income after Taxes
Where a guiding rate of interest fluctuates with the inflation rate but remains constant in real terms, present values of future timber income after property taxes or yield taxes tend to be independent of inflation. After capital gains taxes, however, present values decline with increases in the projected inflation rate. The decline becomes less significant with lengthening payoff periods.
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Document Type: Journal Article
Affiliations: Associate Professor of Forest Economics, Virginia Polytechnic Institute and State University, Blacksburg
Publication date: 01 February 1979