Smith Amendment Permits Critical Income Averaging for Fishermen

March 4, 2004

Smith Amendment Permits Critical Income Averaging for Fishermen

Washington, DC - Today, Senator Gordon Smith announced that he introduced an amendment to the Jump Start Our Business Strength (JOBS) Act, which would allow fishermen to use income tax averaging to help mitigate the effects of their fluctuating incomes.

"Oregon's fishing industry has faced more than its share of challenges," Smith said. "Making our tax code more fair means fishing families get to decide how to spend more of their hard-earned dollars."

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.

"Senator Smith has once again stepped forward to support the state's important commercial fisheries, providing critical relief for working families on the Oregon coast," said Oregon Trawl Commission Administrator Brad Pettinger. "Commercial fishing is dangerous enough. Hard-working fishermen shouldn't also have to face the risk of unequal treatment under federal tax law."

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