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Revision as of 07:26, 4 March 2025
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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 Denver colorado. v. C.I.R., 227 F.2d 16, 19-20 (3rd Cir. 1960).) Various other taxes are commonly referred to as "indirect taxes," because they tax an event, rather than somebody or property per se. (Steward Machine Co. v. Davis, 301 U.S. 548, 581-582 (1937).) What turned out to be a straightforward limitation on the power of the legislature based on the main topics the tax proved inexact and unclear when applied a good income tax, that arguably viewed either as a direct or an indirect tax.
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During is the fact Depression and World War II, the top income tax rate rose again, reaching 91% within transfer pricing war; this top rate remained ultimately until '64.
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If you add a C-Corporation into the business structure you can reduce your taxable income and therefore be qualified for a few of those deductions and your current income is too high. Remember, a C-Corporation is its own individual individual.
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