Income one calls colloquially regular incomes of a household. In the political economy the income represents both in the and in the a central size for the measurement of the economic welfare. The income makes possible for a household to increase over consumption today and a saving in the future its prosperity. The term is used also in the tax law.
As income the net assets entrance of a natural person or a household in the economical sense is understood within a certain period (in general one calendar year and/or one financial year).
Income and net assets: The income exists in the difference of net assets at the end of the yearly to net assets at the beginning of the yearly plus during this time consumed.
Earned income and unearned income: Earned income results from the production or the exchange of goods, achievement of dependent work against pay and other requirements in a market. A capital income results from interest, dividends, incomes by rent and lease.
Transfer income: Transfer income one calls incomes, which is made available by the state or other institutions, without a concrete return takes place. (Example: Social welfare assistance, unemployment pay etc.) the counterpart in addition are payments of taxes and deposits for social security.
In addition, can be obtained by inheritance or donations income.
In the one considers the income for the measurement of the fortune entrances of a national economy (national income), cumulated. For this is the income term in a whole set of sizes of the economical Gesamtrechnung (VGR). Over the distribution calculation the different income components can be computed. The two most important macro-economic sizes for the measurement of the income are
The income term so e.g. dips beyond that also into other VGR sizes up.
Since income increases do not draw prosperity increases when being present inflation compellingly, one measures the real income apart from (nominal) the income deduced above also.
Real income: The real income is a price-settled nominal income reduced by the monetary depreciation rate. The real income is determined, as the nominal income of a restaurant subject or a national economy is divided by a suitable price index. The real income is thus defined as an index; its absolute value has thus no logical value. The real income serves as indicator for the actual purchasing power of the income.
Example: With an inflation rate of 4% and an increase of the nominal income around 3% the real income sinks around 1%.
See to major item available income
Not the entire income can be used for welfare-increasing purposes, since a large part of the income is used e.g. by taxes and deliveries. For this reason the available income considers only the parts of the income remaining for consumption and/or saving. Income and wealth taxes, performed social insurance contributions and other current performed transfers are taken off for this from the income, received social insurance contributions and received current transfers are added.
The Einkommensteuerrecht differentiates between incomes, an income, incomes and to paying duty income. Income is decreased the total amount of the income, by the extra charges and the unusual loads.
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» Earned income
» Income tax (Germany)
» Index-linked wage
» Pay regulation W
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» Representational allowance
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