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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.
What else can I help you with?
What is an example of indirect tax?
An example of an indirect tax is the sales tax, which is levied on the sale of goods and services. This tax is collected by retailers at the point of sale and then passed on to the government. Unlike direct taxes, such as income tax, the burden of indirect taxes can be shifted from the seller to the consumer, who pays the tax as part of the purchase price.
Is petroleum tax a direct or indirect tax?
it is an indirect tax
Is import duty a direct tax or indirect tax?
indirect tax
Is sales tax an indirect tax are direct tax?
Sales tax is considered an indirect tax because it is levied on the sale of goods and services and is collected by the seller from the buyer at the point of sale. The seller then remits the collected tax to the government. Unlike direct taxes, which are paid directly by individuals or entities based on their income or wealth, indirect taxes like sales tax can be passed on to consumers, making them less visible in the transaction process.
Is wealth tax a direct tax or indirect tax?
direct tax
Is the tax on your house indirect tax or direct tax?
excise taxA+
Is VAT direct or indirect?
VAT is an indirect tax as it is based on a tax applied to the manufacture or sale of goods and services. Basically, VAT is mainly added to and paid for by a customer when making a purchase.
Is federal income tax direct or indirect?
Federal income tax is a direct tax on income and not an indirect tax. Direct taxes are paid directly to the government.
Is capital gains tax direct or indirect tax?
direct tax
Is toll tax direct OR indirect tax?
Toll tax is a direct tax
Is property tax on your house direct or indirect?
direct tax
Is the tax on food items a direct or indirect tax?
Indirect tax because they are impose on goods and services
