Sales taxes are an example of indirect taxes because?

A. The amount of sales tax paid by consumers increases as your income goes up

B. Sales taxes are charged as part of the price a consumer pays for a product

C. The amount of sales taxes paid by consumers drops as your income drops

D. Sales taxes are charged based on your ability to pay them

Question

Patrick

Social Studies

27 February, 19:09

Sales taxes are an example of indirect taxes because?

A. The amount of sales tax paid by consumers increases as your income goes up

B. Sales taxes are charged as part of the price a consumer pays for a product

C. The amount of sales taxes paid by consumers drops as your income drops

D. Sales taxes are charged based on your ability to pay them

+1

Answers (1)

Know the Answer?

Gregory Moran · Answer 1

The correct answer is B. Sales taxes are charged as part of the price a consumer pays for a product

This are taxes that are collected by the salesperson that sold you the goods. For example, VAT is a sales tax that is indirect. When you buy something, you also pay the Value Added Tax. This tax is collected by the salesperson because they already paid the state for it. They pay for the production of goods more then they should to the country, but they take the tax from you when you purchase so it all works well then.