Definitions for disposable income
This page provides all possible meanings and translations of the word disposable income
Random House Webster's College Dictionary
personal income that remains after taxes and expenses are paid.
Origin of disposable income:
income (after taxes) that is available to you for saving or spending
The amount of a person's or group's monetary income which is available to be saved or spent (on either essential or non-essential items), after deducting all taxes and other governmental fees.
Disposable and discretionary income
Disposable income is total personal income minus personal current taxes. In national accounts definitions, personal income, minus personal current taxes equals disposable personal income. Subtracting personal outlays yields personal savings, hence the income left after paying away all the taxes is referred to as disposable income. Restated, consumption expenditure plus savings equals disposable income after accounting for transfers such as payments to children in school or elderly parents’ living arrangements. The marginal propensity to consume is the fraction of a change in disposable income that is consumed. For example, if disposable income rises by $100, and $65 of that $100 is consumed, the MPC is 65%. Restated, the marginal propensity to save is 35%. For the purposes of calculating the amount of income subject to garnishments, United States' federal law defines disposable income as an individual's compensation after the deduction of health insurance premiums and any amounts required to be deducted by law.
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"disposable income." Definitions.net. STANDS4 LLC, 2014. Web. 1 Sep. 2014. <http://www.definitions.net/definition/disposable income>.