direct tax (redirected from Direct taxes)

Direct Tax

A tax that cannot be shifted onto others.

Notes:

Income and property taxes are good examples of direct taxes.

See also: Income Tax, Indirect Tax, Property Tax

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direct tax

A tax paid by the individual or organization on which it is levied. For example, the personal income tax is levied on individuals, who end up bearing the entire burden of the tax. A direct tax cannot be shifted from the entity on which it is levied. Compare indirect tax.