Question

What is gross income, and why is it less than the Haig Simons comprehensive definition of income? What are tax preferences, and how can tax expenditures be used to evaluate the desirability of preferences?

Answer 1

Girtoss intoMe Gnoss income s the SuM of waqes, Salarées, interest bayments, Tent expenses and Other 2annengs tax deduct'ons. Net income uoru be besove any as qoss trnome minus taxes and othere calcutated deduceons incoM defenes taxable to pay tax, total Cosumptor) Haig semons Comprehensene res oursces éncrease n stock values. during the yeare pui any GLOSS nome ts Less than Ha stmons 'ncome it doesn't éncude encreare n Stock because comsumpteom aMounts ssnome not arse aMount Atso caLeulatton. Censideed Tar beference - Tax b Tene wril ircude intesest or) bvate mun ici pal bonds and excess of htangeble Cos ts Fos oil & qas ( when the aMOunt exceeds 40/. ot én come) otnome undec dting a dded to the amount Tax preferences are RS used to e valuate Fooargs are tar preferen ces the ways experde'tumes ame the menrmum tar Altenatine min?'muM tar wru pay after au the excuson ndireduaL that arn and dedue tions hagh encome tmparts deductrons aeso Itemezed grouth and qToss adjurted énome busrness stocK uaityng excusror o Smau us ed fon tast breference Cal culatrorn be wiu Stock optton wil also Any capitat ga, froM Cmsiderted .