Whereas national income shows the income that the factors of production earn, personal income measures the income that individuals or households receive. Corporation profits are included in national income because they are earned. Out of these profits, however, corporation profit taxes must be paid to the government, and some money must be put into the business for expansion. Only that part of profits distributed as dividends goes to the individual; therefore, out of corporation profits only dividends count as personal income. The factors of production earn money for social security and unemployment insurance contributions, but this money goes to government (which is not a factor of production), not to individuals. It is therefore part of national income but not part of personal income.
On the other hand, money received by individuals when they collect social security or unemployment compensation is not money earned but money received. Interest received on government bonds is also in this category, because much of the money received from the sale of bonds went to pay for war production and that production no longer furnishes a service to the economy.
The money people receive as personal income may be either spent or saved. However, not all spending is completely voluntary. A significant portion of our income goes to pay personal taxes. Most workers never receive the money they pay in personal taxes, because it is withheld from their paychecks. The money that individuals are left with after they have met their tax obligations is disposable personal income. Disposable income can be divided between personal consumption expenditures and personal savings. It is important to remember that personal saving is what is left after spending.
The passage implies that__.
A.people willingly pay taxes because they want to do something useful to the country
B.people willingly pay taxes because they do not want to be looked down upon by others
C.people pay taxes unwillingly because they feel they will be arrested if they do not
D.people pay taxes somewhat unwillingly
[单选题]Income may be national income and personal income. Whereas national income
[单选题]Income may be national income and personal income. Whereas national income
[单选题]Income may be national income and personal income. Whereas national income
[单选题]Income may be national income and personal income. Whereas national income
[单选题]In an economy, consumption is 70% of pre-tax income and the average tax rat
[主观题]Personal income 个人收入
[名词解释] Personal income 个人收入
[单选题]Unfortunately,therate of his expenditure [surpasses] that of his income.A.p
[试题](b) Compute Gloria’s total income tax and national insurance liability for 2006/07. (7 marks)
[单选题]My investment in that company can no longer be______as a source of income.A