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Essay Details:
Essay text:
wages, interests, capital gains profits, remittance, etc.
This is comprehensive definition of Y as it reflects purchasing power
INCOME TAX: definitions
But governments tax these sources separately:
For instance Y to individuals = personal income tax, companies = company tax, capital value gains = capital gains tax, etc.
In addition income can be taxed as it accrues (i.e. before being realized)
e.g. capital gains tax on asset before it is sold
This is administratively hard and may cause cash flow problems
INCOME TAX: definitions
Personal income tax:
Gross income is starting point
Wages, rents, royalties, etc...
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