shareholders pay the taxes within an s corporation.
who pays the taxes within an s corporation?
shareholders
na
na
the court held that taxes on the rents or income of real estate, on personal property, or on the income of personal property (e.g. interest and dividends), were direct taxes within the meaning of the constitution, and therefore had to be apportioned. in "springer", the court had held that direct taxes within the meaning of the constitution were only capitation taxes and taxes on real estate. therefore in "pollock", the court overruled a portion of the "springer" decision by expanding the definition of direct taxes. the portion of the "springer" decision that was not overruled by the court in "pollock" was the portion of the holding that applied to taxes on professional earnings. since apportionment of income taxes is impractical, the court's decision had the effect of prohibiting a federal tax on income from property. the power to tax real and personal property, or that such was a direct tax, was not denied by the constitution. due to the political difficulties of taxing individual wages without taxing income from property, a federal income tax was impractical from the time of the "pollock" decision until the time of ratification of the sixteenth amendment (below).
legal history of income tax in the united states