History In The Federal Income Tax: Difference between revisions

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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 Denver. v. C.I.R., 227 F.2d 16, 19-20 (3rd Cir. 1960).) Any other taxes are typically called "indirect taxes," because they tax an event, rather than a person or property by itself. (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 subject of the tax proved inexact and unclear when applied a good income tax, that can easily be arguably viewed either as a direct or an indirect tax.

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Tax deference. While avoiding tax payments is illegal, lowering taxable income is far from being. Stay in compliance by reporting taxable income and deductions that you are legally allowed to claim. Also, be sure to file period and send payments with due particular date agreed.

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