Letters + Opinion » Mailbox

Pity the Poor Farmer



Let's look at Steve Dodge's numbers ("Left with Nothing," July 16). First off, income taxes are paid on net profits not gross sales. Assuming his hypothetical grow numbers are correct, his $230,000 in gross sales will be reduced annually by his cost of production ($115,000) and business and licensing fees (five items totaling $3,960). His net annual profit is now $111,040. The rest of his numbers related to building infrastructure (well drilling, pond installation, etc.) are business startup costs and do not recur every year. But just to be fair, let's reduce his net profit by an additional $15,000 per year. His taxable income is now a measly $96,040. And yes, he will have to pay federal and state income taxes on that amount, just like the rest of us have been doing for years.  

I bet there are a lot of hard working Humboldt County families that would be thrilled to have an income like that ...  Ouch! Left with nothing. Really??

Dick Bruce, Trinidad

Add a comment