July 4, 2012 - Income Defined

Income Defined

INCOME. The gain which proceeds from property, labor, or business; it is applied particularly to individuals; the income of the government is usually called revenue. Bouvier's Law Dictionary

income c.1300, "entrance, arrival," lit. "what enters," perhaps a noun use of the late O.E. verb incuman "come in," from in (adv.) + cuman "to come". Meaning "money made through business or labor" (i.e., "that which 'comes in' as a product of work or business") first recorded c.1600. Income tax is from 1799, first introduced in Britain as a war tax, re-introduced 1842; authorized on a national level in U.S. in 1913. Online Etymology Dictionary

We have been duped into using the word "income" to describe wages. 

A legal person, such as a corporation, expends no energy, and yet money "comes in." A human-being, however, barters his energy, skills, property and/or time in exchange for another's property. Money doesn't just "come in."

If I barter my shovel, which I feel is worth $20, for your rake, which you felt is worth $20, did either of us earn a profit? No. Is that exchange taxable? No. It was an exchange—value for value.

If I have a skill that I feel is worth $20/hr of my time and you have need for that skill for which you are willing to given me $20/hr of your money, did either of us earn a profit? No. We simple exchanged a block of my time for a quantity of your money—value for value. 

If I was asking $20/hr and you gave me $30/hr, then I would have an extra $10/hr coming in for which I had not bartered. That would be gain, or income.

Only corporations have income. humans do not.

If you choose to see it as income and voluntarily pay a tax on it then good for you—do it because you know what you are doing, rather than sheepishly following the crowd.

Use what you read here as a part of your research to establish your understanding.
Your actions remain your responsibility.
All natural rights reserved. © 2012 steven, a man. <><