Difference between revisions of "Dealing With Tax Problems: Easy As Pie"

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Revision as of 13:54, 10 November 2024

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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 Organization. v. C.I.R., 227 F.2d 16, 19-20 (3rd Cir. 1960).) All taxes are known as "indirect taxes," basically tax an event, rather than somebody or property per se. (Steward Machine Co. v. Davis, 301 U.S. 548, 581-582 (1937).) What were a straightforward limitation on the power of the legislature based on the topic of the tax proved inexact and unclear when applied for income tax, that will be arguably viewed either as a direct or an indirect tax.

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Conversely, earned income abroad, and second income from foreign securities, rental, or anything abroad, could be excluded from U.S. taxable income, or foreign taxes paid thereon, could be as credits against Ough.S. taxes due.

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