How Gross is Gross


I am not the most financially minded person in the world, I will freely admit that and go one step further and say that this is one of the areas in which my Wife excels…  So I feel perfectly happy handing anything financial over to her.  I can look at most number problems and be perfectly fine, but then I look at the checkbook and I fall into this trance of mental loss.

On that note, I would like to talk about something that has bothered me for years.  I am not expressing this opinion as an expert, just as a generally annoyed person who is tired of being denied for certain things because of an accounting rule.

Gross income versus Net income.

Why is it that so many places where we go to apply for loans, benefits, etc, require you to list your Gross and not Net income?  If you earn $4000 a month and you only Net $2900, then why do places like banks, auto dealers, etc, base your income on the money that you do not have?

Likewise, if you go into someplace and apply for a particular benefit or assistance of some sort, then they use your Gross income as a deciding factor, when in reality, you only ever see a little more than half of that amount in your pocket?

It does not make sense to me, really.  But I am sure that there are those out there that are more knowledgeable about these things than am I or my wife.  To those people I would like you to comment and share your expert, and maybe not so expert, opinions and understandings of this.


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