income
incomeThe amount an individual can spend in a period while leaving his or her capital unchanged. For an individual with neither assets nor debts, personal income can be defined as receipts from wages, or earned income, plus receipts from transfers, such as pensions. Taxable income is this minus any tax allowances. Net or disposable income is income after payment of direct taxes. Real income is money income deflated by a consumer price index, to find its purchasing power at constant prices. For an individual with assets or debts, income from rent, dividends and interest, or unearned income, has to be added to earned and transfer income. Interest paid out should logically be deducted, though actual tax systems tend to restrict such deductions. For individuals with real or financial assets, the distinction between receipts which are treated as income and those which are treated as capital gains is a highly technical and often...
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