What is Unearned Income?

Non-labor income refers to various incomes obtained through other means besides labor income. It mainly includes property income, operating income, transfer income and other income. Among them, property income refers to various investment income, such as investment dividends, dividends, dividends from the purchase of treasury bonds, stock market stocks, bank deposit interest income, and income derived from various intellectual property rights, land and real estate rights. Such as technological invention achievements, patents converted into shares, bonus points, income from the transfer of trademark goodwill, royalties paid in addition to manuscript fees, income from the transfer of land use rights, rent, etc.

Non-labor income

Operating income refers to operating income exceeding the average profit rate and

Non-labor income is divided into three categories: factor income,

Labor income and non-labor income are described from the perspective of individuals and workers. It is its own income that is created by itself; it is either its own income or non-labor income. This cannot be the case in any society: the wealth and income created by people belong to themselves, without surplus. If so, society cannot move forward. The difference lies in who owns the rest, how, and how much. These are owned by others, and the income obtained from the elements of possession is mainly the share dividends obtained through equity incentives. The income of private business owners and individual industrial and commercial households is a kind of mixed income subject, that is, non-labor income. Or to put it another way, in real society, people earn income through their own labor, such as wages, bonuses, subsidies, job allowances, labor income of farmers and individual workers, and intellectuals' manuscripts and royalties. While rents (depreciation) obtained from renting houses, profits from stock purchases, share purchases, dividends, interest on bank deposits, and gifts, inheritance, relief, etc., are based on assets, status, etc. rather than through themselves The income from labor is called non-labor income. However, there is still a legal and illegal problem with labor income and non-labor income. The report of the 16th National Congress of the Communist Party of China stated that "all legal labor income and legal non-labor income should be protected". This is very correct and justified. This should be the case in any society, otherwise there will be no order and no stable development. What our country protects is legal labor income and legal non-labor income. Never protect illegal income. For example, if the labor income is deducted, it cannot be protected. Tax evasion cannot be protected. As for illegal non-labor income, such as theft, robbery, corruption, bribery, smuggling and smuggling, etc., not only cannot be protected, but it must also be resolutely cracked down and banned. Eradicating corruption mainly refers to managing this kind of behavior. Therefore, there is indeed a problem of defining income distribution. This definition does not just look at labor income and non-labor income, but more importantly, it looks at legality and illegality. In the past, we equated non-labor income with "getting nothing" and even mistaken it as illegal. In fact, as long as it is legal, everything that should be obtained should be obtained, and all should be protected by law. Because our country is a legal country, our society is a society ruled by law. There is a difference between the rule of law and the rule of law.