Please provide a projected economic impact for the following…
Please provide a projected economic impact for the following scenario: The President of the United States has just signed an executive order that will increase the corporate tax rate from 21% to 28% and has included unrealized gains in this new tax rate. The new rate will force corporations to pay the 28% tax on income generated by the corporation and on any increase in value on property, plant, and equipment. Land values in the U.S. are projected to reach an all-time high which has private equity firms interested in purchasing land traditionally in agriculture production. Currently, most family farms have made the transition from sole proprietorships to LLCs that will be affected by this new legislation. In addition to the new tax rate, the president has also enacted a costly tariff on China, the number one purchaser of U.S. cotton. Currently, Brazil, a new entrant into the cotton market, has created a trade relationship with China that offers incentives for the Chinese to import Brazilian cotton.
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