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Encyclopedia > Unearned income

Unearned income refers to income that is not a wage. Income, generally defined, is the money that is received as a result of the normal business activities of an individual or a business. ... A wage is the amount of money paid for some specified quantity of labour. ...


It includes interest, dividends or realized capital gains from investments, rent from land or property ownership, and any other income that does not derive from work. In finance, interest has three general definitions. ... A dividend is the distribution or sharing of parts of profits to a companys shareholders. ... In finance, a capital gain is profit that is realized from the sale of an asset that was previously purchased at a lower price. ...


Unearned income has often been treated differently for tax purposes than earned income, in order to redistribute income. Such a tax structure is most often seen implemented by a socialist government. For instance, income tax on high unearned incomes reached 98% in the United Kingdom in 1979. Supporters of this say that the people who obtained this income did not work to get it and that it should be used to benefit the general population. For redistribution in the policital sense, please see redistricting. ... The color red and particularly the red flag are traditional symbols of Socialism. ... This article needs to be cleaned up to conform to a higher standard of quality. ... This page refers to the year 1979. ...


Some economists claim that unearned income is compensation for deferring consumption, freeing up those resources to be invested in improving the future, by funding research and development of new technologies and services, capital equipment and education to improve the productivity of labor and so forth. This view also holds that unearned income provides an incentive to save, and capital markets facilitate allocation of resources to those enterprises which will provide the best economic benefit. Extra taxes on unearned income can interfere with these mechanisms. This point of view also asserts that all income is ultimately earned, and ask why tax should be higher on work that was done 100 years ago than work that is done today. // Definition Investment or investing is a term with several closely-related meanings in finance and economics. ... Save might refer to: Save (sport) - to stop a goal or maintain the lead To save a document in computer file management (see also Saving a webpage) The River Save (Zimbabwe), Zimbabwe The River Save (Hungary), Hungary -- joins the Danube just above Belgrade. ... The capital market is the market for bonds and stocks. ...


  Results from FactBites:
 
Countable unearned income (3627 words)
The entire amount of alimony received is countable unearned income to an a/r and is also countable for deeming purposes if received by a financially responsible spouse or parent.
Roomer/Boarder income is a form of rental income in which an individual pays an amount (usually weekly or monthly) to the head of household in return for room and/or board in the household.
When an a/r receives income from an individual for whom he has no financial responsibility, always evaluate the living arrangement to determine whether it is a roomer/boarder situation as opposed to a shared household.
Section 15 - Unearned Income (4451 words)
Unearned income from assets may be received in a lump sum or as ongoing income.
Board and room income is not to be assessed in the case of full-time students under 18 who continue to reside with their income assistance families unless the student's earnings are excessive or the family chooses to establish such a relationship.
The remaining 10% of such income shall be exempted from all calculations of the applicant's or participant's entitlement in accordance with sections 8(1) and 8(2) of the Regulation.
  More results at FactBites »

 

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