Direct and Indirect Taxes |  | Describe, in detail, the differences between direct and indirect taxes. Here is a selection of statements and opinions which could be used to answer the question.
Direct tax, such as income tax, is progressive because they are levied on what people earn
With direct tax, the rich pay more, the poor pay less.
Indirect taxes are taxes on goods e.g. alcohol, VAT, petrol, tobacco.
Indirect taxes may be unfair because they hurt the poorest most.
If direct tax was lowered, it would encourage people to set up businesses.
With indirect tax, if you want to cut your petrol consumption or stop smoking and drinking then you pay less tax. | | | | | |
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