Defining Income Which forms of income could be taxed? Wages and salaries, rents, dividends, and so on Haig-Simons definition of income Income is the money value of the net increase in an individuals power to consumer during a period5 Defining Income • Which forms of income could be taxed? – Wages and salaries, rents, dividends, and so on … • Haig-Simons definition of income: Income is the money value of the net increase in an individual’s power to consumer during a period