While Certain Income of a Minor Is Taxed at Higher

question 696

Essay

While certain income of a minor is taxed at higher rates, discuss how income shifting may still be accomplished and any constraints that may exist on income shifting.

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Definitions:

Negative Inequity

A perception of unfairness experienced when an individual perceives they have received less in comparison to others, despite similar input or effort.

Equity Theory

A theory of motivation that focuses on the fairness of how rewards and resources are distributed within social groups or organizations.

Equity Theory

A theory in social psychology that explains how individuals perceive and react to fairness or unfairness in distribution of resources within their interpersonal relationships.

Job Security

The assurance or probability that an individual will keep their job without the risk of becoming unemployed.