2006-10-04 08:25:09 · 3 answers · asked by Nemo 3 in Business & Finance ➔ Taxes ➔ United States
In the colloquial sense, an indirect tax (such as sales tax, value added tax (VAT), or goods and services tax (GST)) is a tax collected by an intermediary (such as a retail store) from the person who bears the ultimate economic burden of the tax (such as the customer). The intermediary later files a tax return and forwards the tax proceeds to government with the return. In this sense, the term indirect tax is contrasted with a direct tax which is collected directly by government from the persons (legal or natural) on which it is imposed.
The term indirect tax has a different meaning for U.S. constitutional law purposes. See Direct tax; see also Excise.
In the early years of the United States, there was strong opposition to the federal government levying direct taxes. As a result, the government resorted to tariffs, an indirect tax.
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2006-10-04 10:02:13 · answer #1 · answered by kitty_mom 2 · 1⤊ 0⤋
If you buy a Coke and pay sales tax that is direct. If the maker of the Coke paid taxes to make it and then charged you more that is indirect.
2006-10-04 08:28:55 · answer #2 · answered by spicertax 5 · 0⤊ 0⤋
That spicertax person is pretty smart and shoud get the 10 points being he was first to have the correct answer..
Now keep in mind there might be a babe with hot legs still could answer which no matter what she answers should get the 10 for the correct answer..
2006-10-04 08:33:58 · answer #3 · answered by Don K 5 · 0⤊ 0⤋