Taxation of Imputed Income
Many countries, such as the United States, tax imputed income only in certain limited situations. Imputed income is sometimes difficult to measure, and tax policies regarding imputed income can have political consequences. For taxpayers, not taxing imputed income creates a tax incentive in favor of owning over renting, and in favor of self-service over hiring. For the economy, not taxing imputed income directs economic activity away from activities associated with extreme and severe division of labor.
Read more about this topic: Imputed Income
Famous quotes containing the words taxation, imputed and/or income:
“Every diminution of the public burdens arising from taxation gives to individual enterprise increased power and furnishes to all the members of our happy confederacy new motives for patriotic affection and support.”
—Andrew Jackson (1767–1845)
“Johnson did not answer ...; but talking for victory and determined to be master of the field, he had recourse to the device which Goldsmith imputed to him in the witty words of one of Cibber’s comedies. “There is no arguing with Johnson; for when his pistol misses fire, he knocks you down with the butt end of it.””
—Samuel Johnson (1709–1784)
“You boast of spending a tenth part of your income in charity; maybe you should spend the nine tenths so, and done with it.”
—Henry David Thoreau (1817–1862)