unearned income

By Frank de Jong, 26 February, 2019

Don't you wonder why jobs are taxed, but many people get rich by collecting unearned income, which is taxed little or not at all?

There are two income streams:
ā€œearned incomeā€ from jobs, investments, and businesses, and
ā€œunearned incomeā€ primarily from monopoly ownership of land or resources.

Economists call unearned income ā€œeconomic rentā€, defined as income not subject to competition, or revenue without a corresponding cost of production.