General Meaning
A direct tax is one imposed upon an individual person (juristic or natural) or on property, as distinct from a tax imposed upon a transaction. Indirect taxes such as a sales tax or a value added tax (VAT) are imposed only if and when a taxable transaction occurs; people have the freedom to engage in or refrain from such transactions; whereas a direct tax is imposed upon a person, typically in an unconditional manner, such as a poll-tax or head-tax, which is imposed on the basis of the person's very life or existence, or a property tax which is imposed upon the owner by virtue of ownership, rather than commercial use. Some commentators have argued that "a direct tax is one that cannot be shifted by the taxpayer to someone else, whereas an indirect tax can be."
The unconditional, inexorable aspect of the direct tax was a paramount concern of people in the 18th century seeking to escape tyrannical forms of government and to safeguard individual liberty. An 18th century writing about this kind of taxation explained:
| “ | The power of direct taxation applies to every individual ... it cannot be evaded like the objects of imposts or excise, and will be paid, because all that a man hath will he give for his head. This tax is so congenial to the nature of despotism, that it has ever been a favorite under such governments. ...
The power of direct taxation will further apply to every individual ... however oppressive, the people will have but this alternative, either to pay the tax, or let their property be taken for all resistance will be vain. |
” |
Read more about this topic: Direct Tax
Famous quotes containing the words general and/or meaning:
“Though of erect nature, man is far above the plants. For man’s superior part, his head, is turned toward the superior part of the world, and his inferior part is turned toward the inferior world; and therefore he is perfectly disposed as to the general situation of his body. Plants have the superior part turned towards the lower world, since their roots correspond to the mouth, and their inferior parts towards the upper world.”
—Thomas Aquinas (c. 1225–1274)
“The popularity of disaster movies ... expresses a collective perception of a world threatened by irresistible and unforeseen forces which nevertheless are thwarted at the last moment. Their thinly veiled symbolic meaning might be translated thus: We are innocent of wrongdoing. We are attacked by unforeseeable forces come to harm us. We are, thus, innocent even of negligence. Though those forces are insuperable, chance will come to our aid and we shall emerge victorious.”
—David Mamet (b. 1947)