Which of the following is an example of indirect tax?

Corporate income tax
Gasoline tax
Paycheck withholdings
Property tax

1 answer

An example of an indirect tax from the options provided is Gasoline tax.

Indirect taxes are those that can be passed on to another entity or individual, while direct taxes are paid directly to the government by the taxpayer. In the case of gasoline tax, the tax is included in the price of gasoline, and consumers effectively pay it when they purchase fuel.

The other options listed are forms of direct taxes:

  • Corporate income tax is paid by corporations on their profits.
  • Paycheck withholdings are direct deductions from an employee's salary for income tax.
  • Property tax is levied directly on property owners based on the value of their property.