What are the three income types?

      My essay is about the Occupy Wall Street Movement and why they are justified in their anger. The frustration is born out of unjust benefits to the wealthy at the expense of the other classes. The banking collapse of 2008 was just the end of a long line of abuses by those who control the money. The tipping point for the protesters was the fact that not one CEO or executive has been prosecuted for this collapse which was clearly created by their greed. While average Americans are loosing their homes and are unemployed, these fat cats are getting record bonuses. Important to this article is the discussion of the three income types. They are labor or wage income, business income, and capital income.
      Labor income is the wages that each of us make by going to work. We are exchanging our time and skill for monetary remuneration. This is the most common type because 99% of American workers are in this category.This income is subject to both the income tax and the payroll tax. Meaning we pay both income tax and social security/medicare taxes. Social security and medicare taxes equals 15% (7.5% paid by you and 7.5% paid by your employer) of your wages in addition to your income tax bracket percentage.
     Second is business income. This income is represented by the small business. This represents the profit of contractors, shop owners, daycare owners, beauty salon owners, etc. The idea being that the  money is often used to reinvest in there own companies to purchase new equipment, hire more workers, increase production.This income can fall into either labor or capital depending on amounts of income and corporate structure.
     The third type of income is called capital income. This income is generated from investment returns, property, dividends and hedge fund managerial fees. These are the fees we pay to have someone run our 401k funds. Their income for running our retirement is not counted as wage income and therefore they pay only up to 15%  in taxes on this income. This type of income is what the 1% of top earning Americans have. The Americans in this 1% earn 80% of their income through capitol. Meaning they are taxed only up to 15%. We pay 15% in payroll tax AND income tax.