Question

(02.03 MC)

Which of these is an example of indirect tax? (4 points)

Corporate income tax
Gasoline tax
Paycheck withholdings
Property tax

Answer 1

The answer is paycheck withholdings because they are not giving you a direct in-your-face tax

Answer 2

The correct answer is: "Gasoline tax "

The gasoline or fuel tax is charged on fuel comsumption, as a percentage to be paid on top of the fuel price.

It is considered an indirect tax because, although it is collected in gas stations and these are in charge of sending the money to the economic authorities, the tax is ultimately (indirectly) paid by drivers and other fuel consumers.