direct tax

noun

Definition of direct tax 

: a tax exacted directly from the taxpayer

Examples of direct tax in a Sentence

Recent Examples on the Web

Representatives and direct taxes shall be apportioned among the states within this union according to their respective numbers. Gregory Krieg, CNN, "The census has always been a weapon of political power," 27 Mar. 2018 Economists have long argued that carbon pricing, either through a direct tax or cap-and-trade, can be an effective tool for reducing the greenhouse gas emissions warming the planet. Brad Plumer, New York Times, "New Jersey Embraces an Idea It Once Rejected: Make Utilities Pay to Emit Carbon," 29 Jan. 2018 But that progressivity holds true only for direct taxes on personal and corporate income. Joseph C. Sternberg, WSJ, "Europe’s Taxes Aren’t as Progressive as Its Leaders Like to Think," 3 Aug. 2017 The Big Six plan includes direct tax cuts for middle-class earners, but the reduction in business taxation has been criticized as benefiting the wealthy. Edward Lazear, WSJ, "How to Make a Good Tax-Reform Plan Even Better," 16 Oct. 2017 Record corporate profits and unprecedented stock valuations, juxtaposed with weak median income growth this century, together make a strong case for a completely different law, one that would direct tax benefits toward the middle class. Derek Thompson, The Atlantic, "Donald Trump’s Tax Pitch Doesn’t Make Any Sense," 11 Oct. 2017 After the currency move, direct tax revenue increased 19.1% from a year earlier to 1.9 trillion rupees ($30 billion) in April to July. Corinne Abrams, WSJ, "India’s Markets Break Away From the ‘Fragile Five’ Pack," 6 Sep. 2017 Tying direct taxes to political representation was so important that it was repeated in Article 1, Section 9. Adam Chodorow, Slate Magazine, "Thank Your Taxes," 17 Apr. 2017

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'direct tax.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of direct tax

1770, in the meaning defined above

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The first known use of direct tax was in 1770

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More Definitions for direct tax

direct tax

noun

Financial Definition of direct tax

What It Is

A direct tax is any tax levied on companies or individuals that cannot be transferred to another party. It is the opposite of indirect tax.

How It Works

Direct taxes affect individuals and companies to the amountn of the tax that cannot be eliminated by transferring to another party. Personal, corporate and property taxes are examples of direct taxes.

[InvestingAnswers Feature: The Most Important Tax Changes to Know Before Filing Your Tax Return]

Why It Matters

Individuals and entities affected by direct taxes should stay informed about how much they should be prepared to pay, and if these changes might affect business decisions.

[InvestingAnswers Feature: How to Avoid an IRS Audit]

Source: Investing Answers

direct tax

noun

Legal Definition of direct tax 

: a tax imposed on a taxpayer himself or herself or on his or her property — compare excise

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evasion of direct action or statement

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