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Originally Posted by HarryT
But it's not "unearned". You're providing a service to the company: lending them money. The dividends or interest paid is your payment for the service you're providing. You have earned the money by providing the service.
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Quote:
Originally Posted by RHWright
I think what @pdurrant is pointing out is that, at least in some jurisdictions, there is a legal definition of earned income vs unearned income and they are, often, taxed differently.
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Exactly so. There is an economic and legal definition of unearned income. Basically, unearned income is income that you get without having to expend further effort. Earned income is income where one must do work for the income to continue, i.e. do some kind of job and get a salary.
It's not a term related to morals.