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How do households dispose of their income

How do households dispose of their income?

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1. Federal personal income tax is the major component in Personal taxes of which has increased over the years.

2. The smallest fraction of personal income disposition is Saving.

3. Most of household income goes to consumer spending. There are several categories of spending categories:

a. Durable goods are those with life of three or more years.

b. Nondurable goods include things such as food and clothing.

c. Services are today more than one half of all consumer spending, which demonstrates that ours is a service-oriented economy.

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