The Social Cost of Federal Financing 



105 



of all incomes of |5,000 and over was professional income; 37.8 per 

 cent, from farms; and the remaining 50.9 per cent from unincor- 

 porated business.^^ We consider all of the professional income to 

 be a form of wages. ^^ As for the income from farms and unincor- 

 porated business, we allow 50 per cent of the income as managerial 



TABLE 12. Percentage Breakdown of Nonwage Income in 

 Upper-Income Classes * 



Business Dividends Income 



Income class and pro- plus retained from 



(I thousand) fessional earning Rent Interest trusts 



5 to 7.5 69.9 14.2 8.9 5.0 2.1 



7.5 to 10 67.0 17.0 6.9 6.2 2.7 



10 to 15 67.0 18.4 6.7 4.5 3.4 



15 to 20 66.3 19.6 6.1 4.2 4.0 



20 to 30 62.7 21.8 5.9 4.2 5.3 



30 to 50 58.6 26.1 5.5 4.0 5.8 



50 to 100 46.3 36.4 5.5 3.9 8.2 



Over 100 22.2 56.8 4.3 2.9 13.9 



" Statistics of Income for 1952, Prelirninary Report, op. cit. Direct data on the 

 holdings of assets of investors, not derived from tax information, are generally 

 consistent with the figures given here. See J. K. Butters, L. E. Thompson, and 

 L. L. Bollinger, Effects of Taxation on Investment by Individuals (Boston: 

 Graduate School of Business Administration, Harvard University, 1953), p. 468. 



TABLE 13. Percentage Breakdown of Income from Assets in 

 Upper-Income Classes 



Dividends Income 



Income class plus retained from 



($ thousand) Business earnings Rent Interest trusts 



5 to 7.5 56.4 20.6 12.9 7.2 3.0 



7.5 to 10 47.5 27.2 11.1 9.9 4.3 



10 to 15 47.4 29.4 10.7 7.2 5.4 



15 to 20 46.5 31.0 9.6 6.6 6.3 



20 to 30 42.7 33.5 9.1 6.5 8.2 



30 to 50 38.2 39.0 8.2 6.0 8.6 



50 to 100 27.5 49.0 7.4 5.2 10.9 



Over 100 10.9 64.2 5.1 3.3 15.8 



'* U. S. Department of Commerce, National Income, 1954 Edition, A Supple- 

 ment to the Survey of Current Business, p. 76. 



^ While many professions require considerable investment in equipment, a 

 reduction in income would not be likely to affect this kind of investment. 



