Friday, July 18, 2008

What Exactly is Personal Disposable Income?

This is just a follow up to yesterday’s post and will hopefully clarify the definition of Personal Disposable Income that was used yesterday.

According to Statistics Canada personal disposable income is :

“the amount left over after payment of personal direct taxes, including income taxes, contributions to social insurance plans (such as the Canada Pension Plan contributions and Employment Insurance premiums) and other fees. It is a measure of the funds available for personal expenditure on goods and services and personal saving for investments as well as personal transfers to other sectors of the economy.”

So basically personal disposable income = income – taxes
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