Question

Which situation is an example of indirect taxation?

A.
All citizens who earn money in a year pay a portion of it to the government.
B.
The government charges a tax on imports, which companies pass on in the prices they charge buyers.
C.
Corporations have to pay a portion of their earnings to the government each year.
D.
Homeowners must pay a percentage of their home's worth to the government.

Answer 1

A. All citizens who earn money in a year pay a portion of it to the government

Answer 2

Answer: b. The government charges a tax on imports, which companies pass on the prices they charge buyers

Step-by-step explanation: