ECON 1020 Lecture Notes - Lecture 22: Imputed Rent, Retained Earnings, Factor Cost

• School: University of Manitoba
• Department: Economics
• Course: ECON 1020
• Professor: Ryan A.Compton

Document Summary

Corporate income taxes: taxes levied on the corporations. Dividends: paid to the corporate shareholders and flow to households net earnings and flow to the government. Undistributed corporate profits: after-tax corporate profits not distributed as dividends to shareholders; corporate or business saving. Interest income: payments of income to those who supply the economy with capital. This income includes interest on bonds and loans of capital. Investment income: rental income received by households and imputed rent - the estimated rent on housing that households use for their own purpose. This is the earnings of farmers and proprietors from their own businesses. Farm and non farm proprietors supplying their own capital earn profits (or losses), interest, and rents mixed in with their labour income. Add to net domestic income indirect taxes, less subsidies. Indirect taxes: sales taxes (including gst), business properly taxes, and customs duties, which firms treat as costs of producing a product.