The following excerpt is from Sauers v. Alaska Barge, 600 F.2d 238 (9th Cir. 1979):
Turning to the plaintiff's income tax contentions, he acknowledges that the district court acted properly when it adjusted the amount awarded plaintiff for lost future earnings to reflect the net income he would have received after a deduction of income taxes had been made. See Felder v. United States, 543 F.2d 657, 665 (9th Cir. 1976); Boxberger, supra, 529 F.2d at 294-95 ("in cases wherein the gross earnings in question are beyond 'the lower or middle reach of the income scale,' and consequently 'the impact of income tax has a significant and substantial effect in the computation of probable future contributions' . . . , both parties should be permitted to introduce evidence of the extent to which future earnings would have been taxed.") Plaintiff contends that the district court erred, however, by failing to increase the lump sum awarded to account for the fact that the interest earned when that sum is invested would be taxable. Without such an adjustment, the plaintiff argues, the lump sum award will never yield annual sums equal to what plaintiff would have earned after taxes had there been no injury.
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