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Which of the following is an example of an indirect tax?

a) Estate tax
b) Federal income tax
c) Personal property tax
d) Sales tax

User Sunmat
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1 Answer

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Final answer:

Sales tax is an example of an indirect tax, levied on goods and services at the point of sale, while direct taxes like federal income and property taxes are imposed on income and assets respectively.

Step-by-step explanation:

An example of an indirect tax is d) Sales tax. Indirect taxes are levied on goods and services rather than on income or profits. Sales taxes are charged at the point of sale, and the consumer bears the tax by paying a higher price for the good or service. Direct taxes, such as federal income tax, are charged directly to individuals or organizations based on income or property ownership. Other forms of direct taxes include property taxes, directed at assets and generally imposed by local governments, and estate taxes, which are imposed on the transfer of property upon death.

User Iamdlm
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