Is a sale tax direct or indirect?

Answer 1

Sales tax is an Indirect, specifically, Excise tax. The tax is NOT imposed on the buyer of goods, but is actually imposed on the "Privilege" of the "retailer" selling goods and services at "retail". The burden falls directly on the shoulders of the "retailer" who is authorized by law to pass the tax off to the consumer.

Here's a cut and past from Connecticut General Statutes (Title 12, Chapter 219 - Sales and Use Tax)

Sec. 12-408. The sales tax. (1) Imposition and rate of sales tax. (A) For the privilege of making any sales, as defined in subdivision (2) of subsection (a) of section 12-407, at retail, in this state for a consideration, a tax is hereby imposed on all retailers at the rate of six and thirty-five-hundredths per cent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail or from the rendering of any services constituting a sale

Some explanation of the use of the word "privilege" in the statute you just read is warranted at this point.

The use of the word "privilege" in the Statute is NOT by accident or just some random word chosen by the legislature. The only way one is liable for "sales tax" is if first one is involved with the exercising of some type of "privilege"under State authority. If no "privilege" is being exercised, then one has NO sales tax liability, even if they are selling their own stuff to the general public, contrary to what most people assume about the "sales tax"

For instance, a "privilege" is the exact opposite of a "right". A "privilege" usually involves the obtaining of some sort of state or federal license to exercise such "privilege". Rights however are not convertible into "privileges" then required by the state to obtain a license to exercise such right.

To make the point, Government cannot convert rights to privileges then require you to pay money to exercise it. It is wholly without their authority to do such things. Although, government seeming tries very hard to make you think they can.