Direct tax

direct taxesdirect taxationdirecttaxdirect carbon taxdirect taxeFederal Direct Tax
Though the actual definitions vary between jurisdictions, in general, a direct tax is a tax imposed upon a person or property as distinct from a tax imposed upon a transaction, which is described as an indirect tax.wikipedia
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Tax

taxationtaxeslevy
Though the actual definitions vary between jurisdictions, in general, a direct tax is a tax imposed upon a person or property as distinct from a tax imposed upon a transaction, which is described as an indirect tax.
Taxes consist of direct or indirect taxes and may be paid in money or as its labour equivalent.

Pollock v. Farmers' Loan & Trust Co.

Income Tax SuitPollock v. Farmers' Loan and Trust CompanyPollock v. Farmers' Loan & Trust Company
After the 1895 Pollock ruling (essentially, that taxes on income from property should be treated as direct taxes), this provision made it difficult for Congress to impose a national income tax that applied to all forms of income until the 16th Amendment was ratified in 1913.
In a 5-to-4 decision, the Supreme Court struck down the income tax imposed by the Wilson–Gorman Tariff Act for being an unapportioned direct tax.

The Wealth of Nations

Wealth of NationsAn Inquiry into the Nature and Causes of the Wealth of NationsAdam Smith
The distinction between direct and indirect taxation was first extensively discussed by Adam Smith in his Wealth of Nations, as in the following passage:
He also introduced the distinction between a direct tax, and by implication an indirect tax (although he did not use the word "indirect"):

Constitutional Convention (United States)

Constitutional ConventionPhiladelphia ConventionConstitutional Convention of 1787
The Pennsylvania Minority, a group of delegates to the 1787 U.S. Constitutional Convention who dissented from the document sent to the states for ratification, objected over this kind of taxation, and explained:
If the national government did not impose direct taxes (which for the next century it almost never did), he noted, representatives could not be assigned.

Article One of the United States Constitution

Article IArticle OneU.S. Const. art. I
In the United States, Article I, Section 9, Clause 4 of the Constitution requires that direct taxes imposed by the national government be apportioned among the states on the basis of population.
The amount of direct taxes that could be collected by the federal government from the people in any State would still be tied directly to that state's share of the national population.

Sixteenth Amendment to the United States Constitution

Sixteenth Amendment16th AmendmentSixteenth
After the 1895 Pollock ruling (essentially, that taxes on income from property should be treated as direct taxes), this provision made it difficult for Congress to impose a national income tax that applied to all forms of income until the 16th Amendment was ratified in 1913.
The 1894 Wilson–Gorman Tariff Act contained an income tax provision, but the tax was struck down by the Supreme Court in the case of Pollock v. Farmers' Loan & Trust Co. In its ruling, the Supreme Court did not hold that all federal income taxes were unconstitutional, but rather held that income taxes on rents, dividends, and interest were direct taxes and thus had to be apportioned among the states on the basis of population.

National Federation of Independent Business v. Sebelius

Florida et al v. United States Department of Health and Human ServicesFlorida v. United States Department of Health and Human ServicesNFIB v. Sebelius
In National Federation of Independent Business v. Sebelius, the Supreme Court held that a penalty directly imposed upon individuals for failure to possess health insurance, though a tax for constitutional purposes, is not a direct tax.
Further, the Court ruled that while the section 5000A penalty is treated as a tax for constitutional purposes, it is not a direct tax, and therefore is not required to be apportioned among the states according to population.

Indirect tax

indirect taxationindirect taxesindirect
Though the actual definitions vary between jurisdictions, in general, a direct tax is a tax imposed upon a person or property as distinct from a tax imposed upon a transaction, which is described as an indirect tax.
In this sense, the term indirect tax is contrasted with a direct tax, which is collected directly by government from the persons (legal or natural) on whom it is imposed.

United Kingdom corporation tax

corporation taxUK corporation taxUnited Kingdom
Except for certain life assurance companies, it is borne by the company as a direct tax.

United States

AmericanU.S.USA
In the United States, Article I, Section 9, Clause 4 of the Constitution requires that direct taxes imposed by the national government be apportioned among the states on the basis of population. However, in the United States, the term has special constitutional significance because of a provision in the U.S. Constitution that any direct taxes imposed by the national government be apportioned among the states on the basis of population.

European Union

EUEuropeanEurope
In the European Union direct taxation remains the sole responsibility of member states.

Juridical person

legal entityjuristic personlegal entities
In general, a direct tax is one imposed upon an individual person (juristic or natural) or property (i.e. real and personal property, livestock, crops, wages, etc.) as distinct from a tax imposed upon a transaction.

Natural person

naturalnatural personsindividual
In general, a direct tax is one imposed upon an individual person (juristic or natural) or property (i.e. real and personal property, livestock, crops, wages, etc.) as distinct from a tax imposed upon a transaction.

Sales tax

salessales taxesnational sales tax
In this sense, indirect taxes such as a sales tax or a value added tax (VAT) are imposed only if and when a taxable transaction occurs.

Value-added tax

VATvalue added taxGoods and Services Tax
In this sense, indirect taxes such as a sales tax or a value added tax (VAT) are imposed only if and when a taxable transaction occurs.

Adam Smith

SmithA SmithAdam Smith’s
The distinction between direct and indirect taxation was first extensively discussed by Adam Smith in his Wealth of Nations, as in the following passage:

Property tax

property taxespropertymillage
In the United States, the term "direct tax" has acquired specific meaning under constitutional law: a direct tax is a tax on property "by reason of its ownership" (such as an ordinary real estate property tax imposed on the person owning the property as of January 1 of each year) as well as a capitation (a "tax per head").

United States Court of Appeals for the District of Columbia Circuit

D.C. Cir.D.C. CircuitU.S. Court of Appeals for the District of Columbia Circuit
The United States Court of Appeals for the District of Columbia Circuit has stated: "Only three taxes are definitely known to be direct: (1) a capitation [ . . . ], (2) a tax upon real property, and (3) a tax upon personal property."

United States Congress

CongressU.S. CongressCongressional
After the 1895 Pollock ruling (essentially, that taxes on income from property should be treated as direct taxes), this provision made it difficult for Congress to impose a national income tax that applied to all forms of income until the 16th Amendment was ratified in 1913.

Income tax

income taxesincometaxes
After the 1895 Pollock ruling (essentially, that taxes on income from property should be treated as direct taxes), this provision made it difficult for Congress to impose a national income tax that applied to all forms of income until the 16th Amendment was ratified in 1913.

United States Court of Appeals for the Third Circuit

Third Circuit Court of Appeals3d Cir.U.S. Court of Appeals for the Third Circuit
1990) (tax evasion conviction under affirmed by the United States Court of Appeals for the Third Circuit; taxpayer's argument – that because of the Sixteenth Amendment, wages were not taxable – was rejected by the Court; taxpayer's argument that an income tax on wages is required to be apportioned by population also rejected); Perkins v. Commissioner, 746 F.2d 1187, 84-2 U.S. Tax Cas.

United States Court of Appeals for the Sixth Circuit

6th Cir.Sixth Circuit Court of AppealsSixth Circuit
1984) ( ruled by the United States Court of Appeals for the Sixth Circuit to be "in full accordance with Congressional authority under the Sixteenth Amendment to the Constitution to impose taxes on income without apportionment among the states"; taxpayer's argument that wages paid for labor are non-taxable was rejected by the Court, and ruled frivolous).

Withholding tax

withholdingwithholding taxeswithhold
EU direct taxation covers, regarding companies, the following policies: the common consolidated corporate tax base, the common system of taxation applicable in the case of parent companies and subsidiaries of different member states (to avoid withholding tax when the dividend qualifies for application of the EC Parent-Subsidiary Directive, the financial transaction tax, interest and royalty payments made between associated companies and elimination of double taxation if the payment qualifies for application of the EC Interest and Royalties Directive.

Corporate tax

corporation taxcorporate income taxbusiness tax