Implications of Tax Policy on Investment in a CommonProperty Resource
Academic Article
Overview
Research
Identity
Additional Document Info
Other
View All
Overview
abstract
This study employs a financial model to examine the aggregate investment expenditures for Gulf of Mexico shrimp vessels. Specifically, the impacts of tax policiesinvestment tax credits and income taxeson investment decisions in the Gulf shrimp fishery are evaluated. Contractionary tax policy is an effective tool in limiting entry to the shrimp fishery and, thereby, controlling the problem of overcapitalization. Decreases in the investment tax credit rate, increases in the income tax rate, or a combination of both policies will curtail investment activities in the fishing industry. Implementation of such tax schemes should raise total revenues of vessel owners, in the long run, from what they otherwise would have been. 1986 Taylor & Francis Group, LLC.