Free access to scriptures religious leaders try to censor
This Haig Simons income/profit may be related to corporate valuation more. We used to think that corporate valuation is simply the present value of all future cash flow. I wonder if we can measure that, and get some actual value, of present value of all future Haig Simons income + current valuation?
For example, say a company spends money in advertising to build brand. His book income may be negative. He spend money on advertising and that’s it. However, we can see that advertising actually generate Haig Simons income. His brand worth more. The increase valuation of his brand is actually “income” that improve his whole corporate valuation.
A wise CEO then spend money on advertising even though it reduces profit. A wise investor then value the company higher knowing taking into account the brand valuation. Another sample is research.
Research cost money but then the company increase the values of it’s intellectual property. A wise CEO then maximize the Haig Simons profit and invest in research if and only if the cost of research exceed the increase of intellectual property valuation.
Of course, research will increase costs and reduce taxable income. Which is even better.
In general the Haig Simons income is also what determines your happiness. In general, you want to max out your Haig Simons income and minimize your taxable income. Your taxable income is your source of grief and your Haig Simons income is your source of happiness.