Each of the following is an indirect tax EXCEPT the __________ tax.
gasoline
telephone
corporate income
excise
my answer is Telephone. :)
I disagree.
http://www.investopedia.com/terms/i/indirecttax.asp
To confirm your answer, let's understand what indirect taxes are and then analyze each option.
Indirect taxes are taxes levied on goods, services, or activities rather than directly on individuals or income. They are usually incorporated into the final price of goods or services that consumers pay. Examples of indirect taxes include sales tax, excise tax, and value-added tax (VAT).
Now, let's analyze the options:
1. Gasoline: Gasoline tax, also known as a fuel tax or petrol tax, is a common example of an indirect tax. Governments impose taxes on the sale or use of gasoline to generate revenue and discourage excessive fuel consumption.
2. Telephone: Based on your answer, you believe that telephone tax is not an indirect tax. However, in reality, telephone tax is an indirect tax. Governments often impose taxes on phone services to generate revenue. This tax is usually collected by service providers as a separate charge on phone bills and is considered an indirect tax.
3. Corporate income: Corporate income tax is an example of a direct tax. It is levied on the profits or income of corporations and is paid by the corporate entity itself.
4. Excise: Excise tax is another example of an indirect tax. It is a tax applied to specific goods such as alcohol, tobacco, or luxury items. The tax is generally included in the price of the product and paid by the consumer when purchasing the item.
Based on the analysis, the correct answer is corporate income tax. Corporate income tax is not an indirect tax but a direct tax, as it is levied directly on corporate profits rather than on goods, services, or activities.
Therefore, the correct answer is corporate income tax, and your initial answer of telephone tax is incorrect.