A tax, such as income tax, that is levied on the income or profits of the person who pays it, rather than on goods or services.
More example sentences
- The Scottish National Party has called for a return to direct taxes like income tax, under which the rich pay more.
- It ruled that because the income tax was a direct tax not apportioned among the states, it violated Article I of the US Constitution.
- Some research had been done at Massey University (at Palmerston North in the North Island) showing that countries that had this independent direct tax rather than income tax had higher employment rates.
Definition of direct tax in:
- The British & World English dictionary