In my opinion, I think it’s more than fair. It’s downright generous. Passive income tends to be more heavily rewarded (and less taxed) than active income. But passive income strategies can also add a lot of value to the economy, and so it makes sense to reward these strategies more heavily.

It’s not uncommon for active income earners to think of passive income as a greedy strategy. The irony is that it’s just as easy to regard active income earners as holding back and making a lesser contribution… contributing to just one employer when they could be serving many more people. The truth is that both strategies seek to contribute, just in different ways.

As I’ve noted in previous posts, I think passive and active income strategies are mutually supportive. They are not opposites. I think it’s healthy for both to co-exist.

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