direct tax
Học thuậtThân thiện
Definition
- Noun:
- A tax paid directly by the person or organization on whom it is levied: A direct tax is a levy that is imposed on and paid for by the same individual or entity. The burden of this tax cannot be shifted to another party.
Usage
- The term "direct tax" is used in economics, finance, and law to categorize taxes based on who bears the ultimate financial responsibility.
- It is typically contrasted with an indirect tax, where the tax burden can be passed on to another party (e.g., a consumer).
Examples
- Noun:
- Income tax is a classic example of a direct tax.
- The proposed reform aims to simplify the system of direct taxes on corporations.
- Property tax is considered a direct tax because the homeowner is liable for its payment.
Advanced Usage
- "Incidence of a direct tax": This phrase refers to the analysis of who ultimately bears the economic burden of the tax. By definition, the legal and economic incidence of a direct tax falls on the same entity.
- The study focused on the incidence of the direct tax on high-income earners.
Variants and Related Words
- Direct taxation (n): The system or practice of imposing direct taxes.
- The country relies heavily on direct taxation for its revenue.
- Indirect tax (n): A tax collected by an intermediary (like a retailer) from the person who ultimately bears the economic burden (like a consumer), such as a sales tax or value-added tax (VAT).
Synonyms
- Non-shiftable tax: A tax whose liability cannot be transferred.
Antonyms
- Indirect tax: A tax where the liability for payment can be shifted from the taxpayer to another person or group.
Noun
- a tax paid directly by the person or organization on whom it is levied