Asked by Cassandra Myers on Jul 02, 2024
Verified
The federal personal income tax is
A) a direct tax.
B) an indirect tax.
C) both a direct tax and an indirect tax.
D) neither a direct tax nor an indirect tax.
Direct Tax
is a type of tax directly imposed on individuals or entities, such as income tax and property tax, which cannot be passed onto others.
- Acquire knowledge on the distinctions and classifications between taxes, focusing on direct versus indirect and progressive versus regressive taxes.
Verified Answer
MD
Manpreet Dhillon7 days ago
Final Answer :
A
Explanation :
The federal personal income tax is a direct tax because it is levied directly on individuals based on their income. This is in contrast to indirect taxes, which are levied on goods and services and are passed on to consumers in the form of higher prices.
Learning Objectives
- Acquire knowledge on the distinctions and classifications between taxes, focusing on direct versus indirect and progressive versus regressive taxes.