PRC-3 · Chapter 16 · Question 10 of 20
A defining feature of a 'Direct Tax', such as personal income tax, is that:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The financial burden cannot be shifted to another person
Explanation
A direct tax is levied directly on an individual's income or wealth, and the legal obligation to pay it rests entirely on that individual.
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