A direct tax is a tax exacted directly from the persons who will bear the burden of it (without reimbursement to them at the MORE?.An example of direct taxation would be income taxes that are collected from the people who actually earn their income...more
difference b/w direct tax and indirect tax
the difference between a direct tax is one that must be paid directly to the government by the person on whom it is imposed and indirect tax is one first paid by one person but then passed on to another.
A direct tax is one that is taken directly from the individual, such as income tax. Indirect taxes, such as sales tax, are collected by merchants and taken from the consumer. Indirect taxes also lead to inequalities while direct taxes do not.
Direct taxes are levied directly on individuals or organizations and cannot be transferred to another party, such as income tax or property tax. Indirect taxes are imposed on goods and services and are ultimately paid by the consumer, like sales tax or value-added tax.
1. The allocative effects of direct taxes are superior to those of indirect taxes. 2. Direct taxes are progressive and they help to reduce inequalities. 3. The administrative costs of direct taxes are more than that of indirect taxes. 4. Direct taxes are more flexible than that of indirect taxes. 5. Indirect taxes are more growth oriented than direct taxes.
it is an indirect tax
A direct tax is a tax exacted directly from the persons who will bear the burden of it (without reimbursement to them at the MORE?.An example of direct taxation would be income taxes that are collected from the people who actually earn their income...more
indirect tax
direct tax
excise taxA+
direct tax
Federal income tax is a direct tax on income and not an indirect tax. Direct taxes are paid directly to the government.