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Latest revision as of 15:49, 3 September 2026

The courts have generally held that direct taxes are limited to taxes on people (variously called capitation, poll tax or head tax) and property. (Penn Mutual Indemnity Co. v. C.I.R., cibai 227 F.2d 16, 19-20 (3rd Cir. 1960).) Any other taxes are commonly referred to as "indirect taxes," because they tax an event, memek rather than somebody or property as such. (Steward Machine Co. v. Davis, 301 U.S. 548, 581-582 (1937).) What turned out to be a straightforward limitation on the power of the legislature based on the topic of the tax proved inexact and unclear when applied to an income tax, which can be arguably viewed either as a direct or an indirect tax.

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