Direct tax
From Freepedia
A direct tax a tax that is collected directly by government from the persons (legal or natural) on which it is levied. Examples include income tax and corporate taxes and transfer taxes. It contrasts with an indirect tax (such as sales tax or Value Added Tax (VAT)), which are collected by intermediaries and the proceeds passed on to government.
In the United States, Article I, Section 9 of the constitution requires that direct taxes imposed by the national government be apportioned among the states on the basis of population; this provision made it difficult for Congress to impose a national income tax that applied to all forms of income until the 16th Amendment was ratified in 1913.
