Value Earned Income over Unearned Income

Value Earned Income over Unearned Income

Earned income is income derived from active participation in a trade or business

  • Wages, salaries, bonuses, commissions, tips
  • Earnings from self-employment

Unearned income refers to income received by virtue of owning land & property, inheritance, pensions and payments received from public welfare.  Income from investments and other sources unrelated to employment services.

The three major forms of unearned income based on property ownership are

  • rent, received from the ownership of natural resources;
  • interest, received by virtue of owning financial assets; and
  • profit, received from the ownership of capital equipment.

It’s time to increase the tax on unearned income. It’s so glaringly obviously true why will no one say it?

 

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