direct taxation
Straight-from-source revenue
Direct taxation is a system where taxes are levied on individuals or organizations and collected straight from them, rather than being embedded in the price of goods or services.
Income tax, property tax, and estate tax are classic examples—the taxpayer pays the government directly and cannot shift the burden to someone else.
This contrasts with indirect taxation, such as sales tax, where the tax is collected by an intermediary.
Direct taxation tends to be more progressive because it can be scaled to income or wealth.
- income taxGovernment charge on earnings
- taxable incomeEarnings subject to taxation
- tax bracketTaxable income category
- capital gains taxLevy on asset sale profits
- corporate taxLevy on company profits
gift tax · payroll tax · wealth tax · fair share · property tax · tax codes · inheritance tax · trusts · ability to pay · estates · individual taxpayers · poll tax · corporations · income redistribution · pay stub · federal withholding · tax exemptions · levy
direct taxationconsumption taxes
Levies on purchased goods
sales tax · value-added tax · VAT · excise tax · tariffs