Tanya purchases a new pair of shoes for $45. The cashier asks her to pay $48. Which of these explains the difference in price?
A direct tax in the form of a flat tax
A direct tax in the form of withholding
An indirect tax in the form of a tip
An indirect tax in the form of sales tax

An indirect tax in the form of sales tax

Explanation:

This is certainly the sales tax, and that the shoe retailer is charging with the actual price And each retailer must charge this as they have to submit the sales tax on the number of goods they sell in a year. And these are indirect taxes. Hence, the $45s here is the price of the shoe, and the extra $3s is the sales tax on that shoe. The retailer collects this on behalf of the government, and remember this is an indirect tax.

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