Government Tax Deed Sales

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The courts have generally held that direct taxes are limited to taxes on people (variously called capitation, poll tax or cibai head tax) and property. (Penn Mutual Indemnity Co. v. C.I.R., 227 F.2d 16, cibai 19-20 (3rd Cir. 1960).) All other taxes are commonly referred to as "indirect taxes," because they tax an event, rather than particular or property by itself. (Steward Machine Co. v. Davis, 301 U.S. 548, 581-582 (1937).) What seemed to be a straightforward limitation on the power of the legislature based on the subject of the tax proved inexact and unclear when applied to an income tax, kontol that arguably viewed either as a direct or an indirect tax.

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