Editing Tax (section)

====Direct and indirect====
{{Main|Direct tax|Indirect tax}}
Taxes are sometimes referred to as "direct taxes" or "indirect taxes". The meaning of these terms can vary in different contexts, which can sometimes lead to confusion. An economic definition, by Atkinson, states that "...direct taxes may be adjusted to the individual characteristics of the taxpayer, whereas indirect taxes are levied on transactions irrespective of the circumstances of buyer or seller."<ref>{{cite journal |last1=Atkinson |first1=A. B. |year=1977 |title=Optimal Taxation and the Direct Versus Indirect Tax Controversy |journal=Can. J. Econ. |volume=590 |page=592}}</ref> According to this definition, for example, income tax is "direct", and sales tax is "indirect". 
 
In law, the terms may have different meanings. In U.S. constitutional law, for instance, direct taxes refer to [[Tax per head|poll taxes]] and [[property tax]]es, which are based on simple existence or ownership. Indirect taxes are imposed on events, rights, privileges, and activities.<ref>{{cite web |url=http://www.investorguide.com/igu-article-1138-tax-basics-what-is-difference-between-direct-and-indirect-tax.html |title=What is Difference Between Direct and Indirect Tax? |publisher=Investor Guide |access-date=28 October 2011 |archive-date=22 June 2013 |archive-url=https://web.archive.org/web/20130622031929/http://www.investorguide.com/article/11164/the-difference-between-direct-tax-and-indirect-tax-igu/ |url-status=dead }}</ref> Thus, a tax on the sale of the property would be considered an indirect tax, whereas the tax on simply owning the property itself would be a direct tax.