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Revision as of 18:09, 30 August 2026
The courts have generally held that direct taxes are limited to taxes on people (variously called capitation, poll tax or head tax) and property. (Penn Mutual Indemnity Company. v. C.I.R., 227 F.2d 16, 19-20 (3rd Cir. 1960).) All the taxes are commonly referred to as "indirect taxes," as these tax an event, rather than somebody or property as such. (Steward Machine Co. v. Davis, 301 U.S. 548, 581-582 (1937).) What seemed to be a straightforward limitation on the power of the legislature based on the main topic of the tax proved inexact and unclear when applied to an income tax, that can easily be arguably viewed either as a direct or an indirect tax.
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Basically, the reward program pays citizens a percentage of any underpaid taxes the government recovers. You receive between 15 and 30 percent of the money the IRS collects, locations keeps the check.
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