Definitions of Income Income Before Taxes Money Income

  • Slides: 4
Download presentation
Definitions of Income • Income Before Taxes (Money Income): Everything including government cash "transfers"

Definitions of Income • Income Before Taxes (Money Income): Everything including government cash "transfers" from Social Security or SSI, welfare, unemployment, workers compensation, pension, disability, etc. • Less Government Transfers: Income before taxes minus government cash "transfers" from Social Security or SSI, welfare, unemployment, workers compensation, pension, disability, etc. Includes capital gains minus expenses • Income After Taxes: Probably Less Government Transfers after taxes: I can’t find this figure on Census Website • After Taxes plus Welfare Income (Disposable Income): Money income plus capital gains, etc. , or Post-Social Insurance Income minus taxes plus cash and noncash transfers (welfare, food stamps, etc. ) source: Kerbo, p. 42

Share of Aggregate Household Income and Gini Index by Quintile by Types of Income

Share of Aggregate Household Income and Gini Index by Quintile by Types of Income : 2005 Quintile source: Kerbo, p. 42 Before Taxes Less Gov. Money After Taxes After Tax + Welfare Lowest 3. 6 1. 1 1. 4 4. 6 Second 9. 0 7. 1 8. 3 10. 3 Third 14. 8 13. 9 15. 1 15. 7 Fourth 23. 0 22. 8 24. 0 22. 7 Highest 49. 7 55. 1 51. 2 46. 2

Definitions of Income • Money Income: Everything but capital gains or "lump sum" payment

Definitions of Income • Money Income: Everything but capital gains or "lump sum" payment from unemployment, pension or insurance • Market Income: Money income minus government cash "transfers" from Social Security or SSI, welfare, unemployment, workers compensation, pension, disability, etc. Includes capital gains minus expenses • Post-Social Insurance Income: Money income plus capital gains; or Market Income plus cash transfers that are not "means tested" (does not include "welfare") • Disposable Income: Money income plus capital gains, etc. , or Post-Social Insurance Income minus taxes plus cash and non-cash transfers (welfare, food stamps, etc. ) source: "The Effect of Taxes and Transfers on Income and Poverty in the United States: 2005 (U. S. Census Bureau: Current Population Reports, p. 2)

Share of Aggregate Household Income and Gini Index by Quintile by Types of Income

Share of Aggregate Household Income and Gini Index by Quintile by Types of Income : 2005 Quintile Money Market Post-SI Disposable Lowest 3. 42 1. 50 3. 24 4. 42 Second 8. 79 7. 26 8. 59 9. 86 Third 14. 42 14. 00 14. 33 15. 33 Fourth 23. 03 23. 41 22. 80 23. 11 Highest 50. 34 53. 83 51. 03 47. 28 Gini 0. 450 0. 493 0. 447 0. 418 source: "The Effect of Taxes and Transfers on Income and Poverty in the United States: 2005 (U. S. Census Bureau: Current Population Reports, p. 6)