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Question
by what means does the constitution allow the congress to raise revenue for its expenditures? what is the difference between a direct tax and an indirect tax?
The U.S. Constitution allows Congress to raise revenue through the power to lay and collect taxes, duties, imposts and excises. A direct tax is levied directly on individuals or property (e.g., income tax, property tax), and is paid directly by the entity on which it is imposed. An indirect tax is levied on goods, services, or transactions and is passed - on to consumers by producers or sellers (e.g., sales tax, value - added tax).
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- The Constitution allows Congress to raise revenue by laying and collecting taxes, duties, imposts, and excises.
- A direct tax is levied directly on individuals or property and paid by the entity on which it is imposed. An indirect tax is levied on goods, services, or transactions and is passed - on to consumers by producers or sellers.