direct taxes
Levies on earnings
Direct taxes are levied on individuals or organizations rather than on transactions or goods.
Income tax, property tax, and estate tax are direct taxes—the taxpayer pays the government directly.
This contrasts with indirect taxes like sales tax, where the tax is embedded in a purchase price.
The Constitution originally required direct taxes to be apportioned among the states by population.
Compulsory government charge
- revenueBusiness income total
- dutyRequired moral task
- exciseRemove by cutting
- fiscal policyState spending and taxation
assessment · collection · enforcement · treasury · government revenue · incidence · jurisdiction · compliance
Legally separate business entity
- profitGain exceeding expenditure
- multinationalOperating across multiple countries
- dividendCorporate profit share
- capital gainsProfit from asset sales
accounting · audit · compliance · deduction · exemption · filing · subsidiary · shareholder
Staff wages collectively
- withholdingKeeping from another
- deductionsConclusions from reasoning
- adjusted gross incomeEarnings after initial subtractions
- IRSFederal tax collector
1040 form · standard deduction · itemized deductions · filing status · W-2 form · earned income · salary · wages
Formal evaluation of worth
- real estateLand and its structures
- land valueWhat real estate costs
- homeownerProperty title holder
- parcelWrapped item for shipping
improvements · homestead · lien · appraisal · cadastre · prorated · arrears · escrow
Assets less debts
- assetsOwned items of value
- inheritanceProperty received from ancestors
- estateProperty and grounds
- capital gainsProfit from asset sales
valuation · equity · investment · portfolio · high net worth · death duty · succession · bequest
levy
Compulsory government charge
fiscal policy · assessment · collection · enforcement · treasury · government revenue · incidence · jurisdiction · compliance
corporation
Legally separate business entity
- profitGain exceeding expenditure
- multinationalOperating across multiple countries
- dividendCorporate profit share
capital gains · accounting · audit · compliance · deduction · exemption · filing · subsidiary · shareholder · fiscal year
payroll
Staff wages collectively
- withholdingKeeping from another
- deductionsConclusions from reasoning
- adjusted gross incomeEarnings after initial subtractions
IRS · 1040 form · standard deduction · itemized deductions · filing status · W-2 form · earned income · salary · wages · self-employment
assessment
Formal evaluation of worth
- real estateLand and its structures
- land valueWhat real estate costs
- homeownerProperty title holder
parcel · improvements · homestead · lien · appraisal · cadastre · prorated · arrears · escrow · stamp duty
net worth
Assets less debts
- assetsOwned items of value
- inheritanceProperty received from ancestors
- estateProperty and grounds
capital gains · valuation · equity · investment · portfolio · high net worth · death duty · succession · bequest · patrimony
direct taxessales taxes
Government fees on purchases
value-added tax · consumption taxes · excise taxes · VAT · customs duties
direct taxesconsumption taxes
Levies on purchased goods
sin taxes · luxury taxes · carbon taxes · fuel taxes · tobacco taxes
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