Income is a term that has extremely widespread use. This concept is used in a variety of ways. The most common meaning of this word is as follows - receiving money or material values as a result of activities.
Income is defined as the total amount of money received in the form of wages, interest, dividends, taxes, and entrepreneurial profits. In macroeconomic analysis, a country's total income or national income is considered. Microeconomic analysis takes into account the inflow of funds or material assets over a certain period of time. Income is also analyzed in terms of a person's purchasing power.
In the history of pre-revolutionary Russia, revenues that entered the budget were defined as direct revenues, indirect revenues and revenues from regalia and monopolies. Today the budget consists of budgetary fund revenues, tax revenues and non-tax revenues. That is, state revenues are made up of foreign trade operations, foreign loans, foreign aid, which is used to carry out state functions, payments, duties and taxes. Tax revenues play a leading role in budget replenishment.
In economics, the concept of "income" has several classifications.
Labor or earned income is the income received for the work performed, and unearned income is the receipt of rent or interest on natural resources or on capital invested somewhere. In the West, this classification is used to determine the tax rate.
Nominal income is monetary income that came regardless of changes in prices and taxation, and real income is income, taking into account changes in prices and tax deductions.
Gross income is the income of an enterprise from the sale of goods and services, property values, interest received from the provision of money on credit, the sale of work performed, proceeds and other cash receipts.
The informal activity where the income was obtained is subdivided into off-market income and illegal income.
The phrase “net income” is the most commonly used phrase and represents the difference between resource costs and gross income. Thus, the phrase “net income” has come to be associated with profit.
