WHAT IS INCOME?

Wairarapa Daily Times, Volume 6, Issue 1689, 19 May 1884, Page 2

WHAT IS INCOME?

The gross receipts from any resource is not. the income, for it is oply when we deduct from the.total receipts of any given source the total cost of producing them that we arrive at the j real incomo. Tho word "income" is often misleading.' The same amounts of income from lands, houses, consols, terminable annuities, commerce, manufacture, labour, or industry are, mean, in reality, quite a.different thing. Hero aro five persons nominally receiving £IOOO each per annum. A has property £33,333 in Consols, income £1000; B has property £6500 in Long Annuities, incomo £1000; C has property £15,000 in Houses, income £IOOO, D has a property .of £30,000 in land in England, incomo, £1000; E has property £IO,OOO in Life Annuities, income £looo.' The annual income is alike, but the capital how different, and why 1 The reason is that the proportion of expenses to be deducted from each description of income differs considerably, .the number: of years the income will lasiin each caso'is very different; and while in the case of consols, the capital is never touched, in the case of terminable annuities the annual income does include, part payment of? capital. Hence the value of all the varied incomes is'verydiff \t'at'the. money markefc.VLeisure.uOur, , : ~-j,..