3 years ago

Is federal income tax a direct or indirect tax? Explain your response.

1 answer:

4 0

Hi! I don't have the answer, but this may help:

" A direct tax is one that the taxpayer pays directly to the government. These taxes cannot be shifted to others. A homeowner pays personal property taxes directly to the government. A family pays its own federal income taxes.

An indirect tax can be passed on to another person or group. A business may recover the cost of the taxes it pays by charging higher prices to customers. A tax shift occurs when the business shifts its taxes to others."

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