Distributing Patronage Income Under Differing Tax Rates and Member Risk Preferences
No hay miniatura disponible
Fecha
Autores
Título de la revista
ISSN de la revista
Título del volumen
Editor
Resumen
Descripción
This paper examines the effects of income tax rates and member risk preferences on the distribution of patronage income in a local agricultural cooperative. The paper uses a modified mean-variance model to provide some discussion points on how to consider the interaction of tax and member risk preferences on maximizing member benefits. Our results suggest that qualified earnings distributions should be relatively low under current tax policy conditions, and consideration should be given to using non-qualified distributions. Also, optimal patronage income distributions are more affected by significant changes in member risk preferences than significant changes in taxes.