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What Is Personal Income
What is Personal Income? Personal Income is the amount of money or cash or other forms of payment that a person earns monthly for the work that they do or the job they hold at a company or a firm. Income need not be only money, but can also be in the form of stocks and shares, etc. Usually, an employee of any organisation is paid for their work in cash, but also avails certain perks and benefits that help in many a way. For example, most workers in almost all major Canadian companies enjoy insurance and medical insurance plans and sometimes even dental insurance.
They are also remunerated for any money that they had spent on behalf of the company or for any product or service that is beneficial for their employer. For example, the cash that is spent on fuel and accommodation during a company related business trip is compensated. Thus all this must be taken into account when one calculates the net personal income.
Of late, there has been stagnation in the post income tax average net annual income for almost all families in the urban areas of Canada.
This is a change from the recent past which had been witnessing a slow, yet sure and steady increase in the net income. For reasons yet unaccounted for, the steady rise has encountered a flat plateau characterised by unchanging personal income for most families in spite of steady inflation of the value of the Canadian Dollar. This is a cause of concern for the government, since this implies that the buying power of the Canadian public has been steadily reducing and the administration fears that is yet another case of the influence of the ugly head of the global economic crisis.
Due to reduced personal income, people are opting not to purchase the newer goods which is in turn reducing the demand and hence creating a buyer’s market which causes reduced revenue for the different companies which means that their stock value drops and thus the employees and other shareholders of the stock suffer more since the number of shares they hold are constant and hence the amount of money held are reduced with reducing stock values. Thus this becomes a cycle where reduced personal income causes a fall in the market which in turn causes a further reduction in the effective income of most families.
The only way to get out of this cycle is for the government to take steps to ensure that there is protection of the worker’s personal income. This protection can be in any form, but its key purpose is to ensure that whatever happens to any company, the government can still make sure that the employees can depend on their government for assistance.
Another idea is to reduce the income tax and hence induce a trickledown effect that eventually causes a relative rise in the Personal Income of the people and hence can help in bolstering the market from inside out. Whatever be the case, one must not forget that a measure of the personal income of any group of people is the best way to garner information about their economic health. What is Personal Income?
They are also remunerated for any money that they had spent on behalf of the company or for any product or service that is beneficial for their employer. For example, the cash that is spent on fuel and accommodation during a company related business trip is compensated. Thus all this must be taken into account when one calculates the net personal income.
Of late, there has been stagnation in the post income tax average net annual income for almost all families in the urban areas of Canada.
This is a change from the recent past which had been witnessing a slow, yet sure and steady increase in the net income. For reasons yet unaccounted for, the steady rise has encountered a flat plateau characterised by unchanging personal income for most families in spite of steady inflation of the value of the Canadian Dollar. This is a cause of concern for the government, since this implies that the buying power of the Canadian public has been steadily reducing and the administration fears that is yet another case of the influence of the ugly head of the global economic crisis.
Due to reduced personal income, people are opting not to purchase the newer goods which is in turn reducing the demand and hence creating a buyer’s market which causes reduced revenue for the different companies which means that their stock value drops and thus the employees and other shareholders of the stock suffer more since the number of shares they hold are constant and hence the amount of money held are reduced with reducing stock values. Thus this becomes a cycle where reduced personal income causes a fall in the market which in turn causes a further reduction in the effective income of most families.
The only way to get out of this cycle is for the government to take steps to ensure that there is protection of the worker’s personal income. This protection can be in any form, but its key purpose is to ensure that whatever happens to any company, the government can still make sure that the employees can depend on their government for assistance.
Another idea is to reduce the income tax and hence induce a trickledown effect that eventually causes a relative rise in the Personal Income of the people and hence can help in bolstering the market from inside out. Whatever be the case, one must not forget that a measure of the personal income of any group of people is the best way to garner information about their economic health. What is Personal Income?
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