Sociology - Wealth, Poverty and Work - Defining and Measuring Wealth
- Created by: osnapitzimmy
- Created on: 16-05-16 16:59
Defining and Measuring - Wealth and Income:
Defining Income:
Income is the inwards flow of money, it is not the same as wages and includes other sources of money like;
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Benefits
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Investments
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Self employment
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Pensions
Earned income:Any money received for labour, wages/self employment etc
Unearned income: Money gained from elsewhere (bank investments, benefits, pensions)
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Original income: Income from private sources, not from the state etc (wages, investments, gifts etc)
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Gross income: A measure of all income sources before tax reductions and national insurances
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Disposable incomes: A measure of what's left from gross income after reductions
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Post-tax income: (We still have to pay taxes on food and goods we buy, VAT, council tax etc) A measure of income after these taxes.
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Final income: After everything is reduced it adds on the benefits you receive that may not be in cash, E.g. healthcare, education etc
Measuring Income:
Every year the government ask for Tax returns which is where everyone should submit what they…
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