Book Description

Excerpt from Family Economics Review, Vol. 3: July 1985 There are limitations to the before-tax income concept. First, this concept fails to account for changes in tax regulations and rates or the effect of the bracket creep. For example, while before-tax real mean family income figures for 1981 - 82 showed a decline, after-tax real income increased during this period by percent. This increase was associated with a reduction in Federal income tax rates. Second, before-tax income may not be efficient for measuring differences in purchasing power between subgroups, such as the aged and the non aged, because certain groups pay smaller proportions of their gross incomes in taxes than others. After - tax income estimates provide a better measure of household purchasing power and differences among population subgroups than do unadjusted income estimates alone. As can be seen in table 1, various subgroups of the population are affected by taxes and by inflation in different ways. Income statistics can also be expressed as household income or family income. House hold income differs from family income in that household income includes not only the income of all related persons in the house hold but also the income of any unrelated persons in the household. Household income also covers the income of one-person house holds. Family income is limited to the income of only related persons in the household. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.