Difference between revisions of "Direct tax"
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| − | A direct tax is a burden carried by the person paying the obligation. It cannot be shifted to others, such as | + | A '''direct tax''' is a burden carried by the person paying the obligation. It cannot be shifted to others, such as [[consumer]]s. |
| − | Personal income | + | [[Personal income taxe]]s, [[social security tax]]es and [[death tax]]es are all direct taxes. [[Sales taxe]]s are not, because a [[merchant]] can shift that tax to his customers. |
| + | ==References== | ||
| + | <references/> | ||
[[category:economics]] | [[category:economics]] | ||
Revision as of 20:47, May 2, 2007
A direct tax is a burden carried by the person paying the obligation. It cannot be shifted to others, such as consumers.
Personal income taxes, social security taxes and death taxes are all direct taxes. Sales taxes are not, because a merchant can shift that tax to his customers.