“...is any income that comes from sources other than employment (work). Examples of unearned income include interest from bonds, savings accounts, and other sources; dividends from stocks; capital gains from selling investments at a profit; and income from rental property.”
Thanks for the condescension. But I know full well what the definition of "unearned income" is.
But that is an intentionally loaded term -- a liberal definition if ever there was one.
"Interest from bonds, savings accounts, and other sources; dividends from stocks; capital gains from selling investments at a profit; and income from rental property.” are every bit as "earned" as wages from digging ditches. It takes time, effort and skills to manage investments; indeed, people actually have jobs doing so. Are their wages "unearned"?
If you really believe the rich are under-taxed -- and you believe yourself rich -- then I expect you have a long and admirable record of writing an extra check to the Treasury every tax year.
If you don't, you are a hypocrite of the first order.
“Thanks for the condescension. But I know full well what the definition of “unearned income” is.
But that is an intentionally loaded term — a liberal definition if ever there was one.”
No, actually it is an IRS term.
http://www.irs.gov/individuals/article/0,,id=176508,00.html:
“What is Earned Income?
Earned income includes all the taxable income and wages you get from working.
There are two ways to get earned income:
You work for someone who pays you
or
You work in a business you own or run
Taxable earned income includes:
Wages, salaries, tips, and other taxable employee pay;
Union strike benefits;
Long-term disability benefits received prior to minimum retirement age;
Net earnings from self-employment if
you own or operate a business, or
you are a minister or member of a religious order ( see Special Rules page for more information);
Gross income received as a statutory employee.
Nontaxable Combat Pay election. You can elect to have your nontaxable combat pay included in earned income for EITC. The amount of your nontaxable combat pay should be shown on your Form W-2, in box 12, with code Q. Electing to include nontaxable combat pay in earned income may increase or decrease your EITC. See Publication 3. Armed Forces Tax Guide, for more information.
Examples of Income that is Not Earned Income:
Pay received for work while an inmate in a penal institution
Interest and dividends
Retirement Income
Social security
Unemployment benefits,
Alimony
Child support.”
You see, “earned income” is a term of art, with specific tax implications. Just like “income tax” is a term of art. Of course, we shouldn’t confuse them with their broader meanings in general usage, though people often do, like those who pontificate that those who don’t pay “income taxes” don’t pay taxes on their income.
” If you really believe the rich are under-taxed — and you believe yourself rich — then I expect you have a long and admirable record of writing an extra check to the Treasury every tax year.
If you don’t, you are a hypocrite of the first order.”
I’ll defer to your judgment (and God’s) on that one. Though I have to admit that I’m not sure I’ll feel entirely safe standing before my Maker someday when He asks me why I criticized the tax code as being too generous to me and didn’t immediately refund the extra. I’m sure it’s probably a straight shot to eternal damnation. Ummmh, now that I think about I realize that I am probably just not smart enough to understand that it is in the country’s best intersts to give me these tax breaks, and that I am actually helping the country and its noble citizens, like yourself, by accepting them. Okay, okay, ahhh, feels a lot better now. Thanks. Glad to do my part.