Death comes to us all. Life's but a walking shadow | While you are certainly correct that the large principal payments that can accompany large land purchases done with borrowed money aren't you assuming that a high percentage of these high priced land purchases were actually made with borrowed money? If the money used to buy land was earned in prior years the tax may have very well been accounted for. Besides, we're already two years away from the really high income years so the tax implications of those years have been realized. And the amount of those loans also depended on the size of the down payment which may have been substantial.
I understand that this doesn't help the younger farmer who bought high priced land with all borrowed money but how what percentage is that? As for the high priced land bought by the land speculation companies, that's their lookout.
PS: Just something else to think about. I payed somewhat higher taxes in 2012 due to a combination of factors (and bought some land) but ironically in turn that extra tax boosted my potential Social Security payments (I'm closer to 65 than some). I calculate that if I live even a few years past retirement I will more than recover that extra tax (assuming SS stays solvent even a few more years). |
More now vs. then
