Income tax and property tax are paid straight from citizens to the government. This makes them which type of tax? A. Direct tax
B. Regressive tax
C. Indirect tax
D. Progressive tax
Income tax and property tax are paid straight from citizens to the government. This makes them which type of tax?
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The correct answer is A. Direct tax.
A direct tax is one that is paid directly by an individual or organization to the government. Income tax and property tax fall into this category because they are directly assessed on individuals’ income and property ownership, respectively. Indirect taxes, on the other hand, are collected by intermediaries (like sales tax), not directly from the individuals to the government.