The following events result in a tax. Which is an example of a direct tax?

Charles sells his 25-acre lot, which includes a pole barn.

Sammy stops to pump gas on a cross-country road trip.

Ingrid's cable bill contains extra fees that weren't listed in the plan.

Javier owes money to the federal government based on his earnings.

Question

Business

Aidyn Medina

22 January, 16:39

The following events result in a tax. Which is an example of a direct tax?

Charles sells his 25-acre lot, which includes a pole barn.

Sammy stops to pump gas on a cross-country road trip.

Ingrid's cable bill contains extra fees that weren't listed in the plan.

Javier owes money to the federal government based on his earnings.

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Answers (1)

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Cedric Buckley · Answer 1

Javier owes money to the federal government based on his earnings.

Explanation:

Direct taxes are levied directly on the income of an individual or a business. Javier pays income tax on his earnings which is classified as a direct tax. Other examples of direct taxes include corporate tax and property tax.

All other options are examples of indirect tax as they are being levied on goods and services. Such taxes are usually included in the price. For e. g. General sales tax and value added tax.