What type of tax affects the amount of money you pay for a product?
A) direct tax
B) income tax
C) indirect tax
D) all of the above

Question

Quizplus · Accepted Answer

Indirect taxes, such as sales taxes or value-added taxes, are added onto the price of a product or service and affect the final amount of money a consumer pays. Direct taxes, like income taxes, are taken out of a person's income or wealth before they are able to spend it on products or services. Therefore, indirect taxes are the type of tax that directly impact the amount of money paid for a product.

What Type of Tax Affects the Amount of Money You