Which type of tax is collected directly from individuals and firms paid straight to the government?

Direct taxation refers to taxes that are paid directly to the government by individuals and firms. This type of tax is typically based on income or wealth, and it includes various forms such as income tax, corporate tax, and property tax. The key feature of direct taxation is that the taxpayer is responsible for paying the tax directly to the government, without any intermediary.

This system ensures that tax obligations are clear and allows the government to directly collect revenue from those who are legally required to pay it, based on their earnings or assets. In contrast, indirect taxes are levied on goods and services and are collected by intermediaries (like retailers) before being passed on to the government.

Progressive and regressive taxation describe how tax rates change relative to the taxpayer's income. Progressive taxation imposes a higher tax rate on higher income levels, while regressive taxation takes a larger percentage from lower-income individuals. Both are concepts that describe the structure of tax systems but do not specifically address the mechanism of payment directly to the government like direct taxation does.