Sales tax??

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Is sales tax a form a direct taxation or indirect?
and why?

I need to know this for an oral exam in 3 hours!!

2006-10-19 02:26:37 · 2 answers · asked by Anonymous in Politics & Government ➔ Government

2 answers

Sales tax, I would think, is a form of direct taxation due to the fact that it is consumption based. That is, you will never pay the sales tax if you never purchase anything that is subject to the sales tax. Plus, the tax is levied directly on the purchaser. Gasoline taxes are likely examples of indirect taxes.

2006-10-19 02:35:56 · answer #1 · answered by jinenglish68 5 · 0⤊ 0⤋

The internet is your friend! Read this

http://en.wikipedia.org/wiki/Indirect_tax

2006-10-19 12:25:55 · answer #2 · answered by Middleclassandnotquiet 6 · 0⤊ 0⤋