Smith Bill Permits Income Averaging by Fishermen

November 6, 2003

Smith Bill Permits Income Averaging by Fishermen

Washington, DC - Today, Senator Gordon Smith (R-OR) introduced legislation (S. 1831) which would allow fishermen to use income tax averaging to help mitigate the effects of their fluctuating incomes.

"Fishermen and their families already have to deal with more than their share of challenges," Smith said. "Making the tax code more consistent will also make it more fair and provide some measure of stability for these hard working Oregonians."

Progressive tax systems, like the federal income tax, often penalize farmers and others whose annual incomes vary greatly. Likewise, fishermen, who experience both good and bad years, are forced to pay more taxes than if they had steady income levels. Since 1998, farmers have been allowed to calculate their taxes by averaging their income over a three-year period. Smith's bill would simply allow fishermen to enjoy the same benefit.

"I am pleased with the proposed legislation," said Oregon Trawl Commission Administrator Brad Pettinger. "Senator Smith has once again responded to the needs of our coastal communities. Given the variable nature of the fishing industry, the ability to income average provides financial stability to Oregon's fishing families."

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