40:
357:, where income taxes on the highest brackets reached 98% in 1979. In recent times the pendulum has swung the other way, and most Western countries tax unearned income more favourably than income from productive work for a number of reasons, including an expectation that much of this income ends up being recirculated into the economy, through things like spending or reinvestment.
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produced by an economy, where "surplus value" refers to value beyond what is needed for subsistence. As such, individuals and groups who subsist on unearned income are characterized as being in an exploitative relationship because the unearned income they receive is not generated by their effort or
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Property income is, by definition, received by virtue of owning property. Rent is received from the ownership of land or natural resources; interest is received by virtue of owning financial assets; and profit is received from the ownership of production capital. Property income is not received in
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some argue are unearned, though this is a great point of contention between all the various economic schools of thought. In the United States, long term capital gains (generally assets held more than 12 months) are taxed at the rate of 15%. Another contentious subject is
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But here again Marx's theory must be understood in Marx's terms. He divides output three ways: into wage income ("variable capital"), property income ("surplus value") and replacement of depreciated machinery and raw materials, etc. ("constant
159:. 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
244:, viewed land as different from other forms of property, since it was not produced by humans. Land ownership, in the sense of political economy, could refer to ownership over any natural phenomena, including
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assert that the purpose of taxes themselves is to allocate resources to where they are most needed, and to prevent a system whereby capital is shifted upward at the expense of the lower tax brackets.
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contribution (hence why their income is "unearned"). The existence of unearned income received on the basis of property ownership forms the basis for the
Marxist class analysis of
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facilitate allocation of resources to those enterprises which will provide the best economic benefit, and that extra taxes on unearned income can interfere with these mechanisms.
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Annuities, pensions from any government or private source, workers' compensation, unemployment insurance benefits, black lung benefits and Social
Security benefits;
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to refer to income gained through ownership of land and other monopoly. Today the term often refers to income received by virtue of owning property (known as
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income or to recognize its qualitative difference from income derived from productive work. Such a tax structure is often associated with a
299:, unearned income is all income that is not earned from one's job or from one's business. Some common types of unearned income are:
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frame, it may mean income not attributed to the normal or expected returns to a factor of production. Generally it may refer to
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While classical free market economists were generally skeptical towards unearned incomes, more recent economists, like
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structure. Supporters argue that extraordinarily high incomes are unearned incomes, with the example of the
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213:'unearned income' has different meanings and implications depending on the theoretical framework used. To
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The value of food or shelter received from someone, or the amount of money received to help pay for them;
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346:
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A patriot's history of the United States : from
Columbus's Great Discovery to the war on terror
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Unearned income has often been treated differently for tax purposes than earned income, in order to
50:
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Atkinson, A.B., "Income Tax and Top
Incomes over the Twentieth Century", December, 2003, p. 132
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and other forms of exclusive production rights, especially in regards to biology and software.
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of land' to broaden the concept to include all land rent, not just increases in land price.
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This article is about a property of personal income. For the financial accounting term, see
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27:. For more specific term for income from the ownership of capital equipment or equity, see
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and artificial monopolies, and didn't consider their incomes to be entirely earned.
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profits, such as when population growth increases the value of a plot of land.
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return for any productive activity performed by its recipients.
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221:' or unearned income. According to certain conceptions of the
571:, U.S. Social Security Handbook (retrieved December 27, 2012)
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Income gained through ownership of land and other monopoly
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and related schools, unearned income originates from the
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http://economics.ouls.ox.ac.uk/12647/1/168_Atkinson.pdf
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Pages displaying short descriptions of redirect targets
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Pages displaying short descriptions of redirect targets
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Railroad retirement and railroad unemployment benefits;
23:. For The concept of unearned income in economics, see
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perspective, but is more commonly used in economics.
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Karl Marx's
Economics: Critical Assessments I and II
442: – Income received by virtue of owning property
163:. As such, unearned income is often categorized as "
430: – British social class of wealthy land owners
64:. Unsourced material may be challenged and removed.
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170:Unearned income can be discussed from either an
306:Department of Veterans Affairs (VA) benefits;
481:Encyclopedia of Political Economy, Volume 2
264:were also concerned about monopolies, both
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336:Strike pay and other benefits from unions.
124:Learn how and when to remove this message
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