'Unearned income' is a term coined by Henry George to popularize the economic concept of land rent and 'rent' generally.
Classical political economists, like Adam Smith and John Locke, viewed land as different from other forms of property, since it was not produced by humans.
[citation needed] Capital gains are a form of passive income some argue are unearned, though this is a great point of contention between all the various economic schools of thought.
[citation needed] In the United States, long term capital gains (generally assets held more than 12 months) are taxed at the rate of 15%.
[citation needed] While classical free market economists were generally skeptical towards unearned incomes, more recent economists, like Ronald Coase, claim that capital markets facilitate allocation of resources to those enterprises which will provide the best economic benefit, and that extra taxes on unearned income can interfere with these mechanisms.