ABSTRACT
Taxation is a fundamental function of the government. In a sense, it defines the state. There are a wide variety of taxes that the average citizen pays, often without being aware that the government is receiving the money, and it is difficult for most people to identify all the tax money they pay to government.2 A direct tax is conventionally defined as a tax which is levied on the person who bears the burden. The theory of tax incidence suggests that it is likely to be a rare occurrence for the taxpayer to bear the full burden, but the conventional classification of direct taxation uses only superficial tax. Thus, income tax is classified as a direct tax because it is levied on the person who receives the income, although in fact he may pass at least part of the burden to others. The personal income tax is not, however, the only tax levied
on incomes. Corporations also have incomes and governments in all nations extract some revenue from that source.
