Income Definition By Authors

The haig simons definition of income states that your income is made up of your consumption plus any increase in your wealth stock.

Income definition by authors. Yet we lack a shared conception of income and a pure rigorous definition of income is impossible. Income is money you earn. Universal basic income is an income support mechanism typically intended to reach all or a very large portion of the population with no or minimal conditions. It s a seemingly simple question that s surprisingly hard to answer.

Income is the basis for assigning tax burdens for distributing transfers and for broader normative issues of inequality and justice. Income definition issues also arise in interpreting optimal tax the ory because economists working in the mirrlees framework have adopted a particular and narrow definition of income different from that used by other economists and legal scholars for other purposes. Income definition is a gain or recurrent benefit usually measured in money that derives from capital or labor. The amount of such gain received in a period of time.

In this article i review the intellectual history of the income concept. Income from wages salaries interest dividends business income capital gains and pensions received during a given tax year are considered taxable income in the united states.