Is the Federal income tax a direct tax, or excise (indirect) tax?

Question

I understand that those are the only two types of tax that the Federal government can impose on the people of the 50 states.

Isn't it true that direct taxes must be apportioned, that is, distributed evenly among all the states? Also, wouldn't a direct tax be imposed in the form of a bill showing money due, as opposed to the method of us "voluntarily complying" by declaring our own income and assessing the tax due ourselves? Where is it stated explicitly that the Federal income tax is a direct tax? I'd like to read that. Thanks-

Can you show me where the 16th amendment removes the requirement to apportion a direct tax? Here's what it actually says: "The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration." This describes an excise tax, which is not only levied on goods, but also on the exercise of privileges, (not rights). It is not the source that is relevant, but the character of the interaction from which the "income" is gotten.

Hi again Wayne Z- I understand "without apportionment " very well. I know that all direct taxes must be apportioned. The 16th amendement has been described by the Supreme Court as not adding new powers of taxation to the law. Where does that leave us? That means that the Federal Income tax is an excise tax, a tax on privileged activities. As noted on numerous occasions even by the IRS, it is based on voluntary compliance, and not mandatory compliance. Thus, we assess ourselves by claiming the amount of our "ïncome" (statutorily defined) when we fill out a return. It is up to us to decide whether the money paid to us is that sort of "ïncome". Income has been shown not to mean äll that comes in". Is it possible that a tax upon mney from any source whatsoever can still be limited in its applicability?

Answer 1

It is a direct tax on income. For salaried and wage employees, it is deducted from pay and paid to the government at the time salaries or wages are earned.

Answer 2

1) You posted this in "India". Obviously, this is a US question.

2) The constitution, as orginally written, required income taxes to be "apportioned". The 16th Amendment removed the apportionment clause....and, yes, the 16th was properly ratified if that was going to be your next argument.

3) In answer to your first question:

>>>>One common mistake made by tax protesters is in assuming that the phrase “Capitation, or other direct, Tax” in the Constitution is a reference to any tax that is collected “directly” from the person on whom it is imposed, while “indirect” taxes such as “Duties, Imposts and Excises” are collected on goods during manufacture, or in transit, and the ultimate burden is passed along to someone else (usually the consumer). That is a definition of “direct” and “indirect” that is frequently used by economists, but it is not the meaning of “direct” and “indirect” that has been applied by the U.S. Supreme Court.<<<<

Edit===

"...from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration."

What part of "without apportionment" do you not understand?

Edit====
The phrase "...not adding new powers of taxation to the law..." is taken out of context by Tax Protesters. Congress always had the power to pass an income tax but, before the 16, it had to be apportioned. Therefore, in effect the 16th added no new tax authority to Congress because it had the authority to impose an income tax the entire time.

The phrase "voluntary compliance" was said by a former IRS commissioner and is also most always taken out of context by tax protesters. He was talking the preparation of tax returns in that, all of us, prepare our returns voluntarily. You can voluntarily choose not to prepare a return, but, as with any law, there are consequences.

None of the arguments that you listed in this or your other post are new. They have been tried many times in court and have lost every time. For your own sake, do not go down this path.

Answer 3

Direct Tax and it's progressive