how can indirect taxes affect consumer spending
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Explanation:
An indirect tax is a tax that is paid through another party and then by the taxpayer. Taxes are always paid to some government entity, usually the IRS for federal taxes or the state where the transaction takes place.
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Answer:
Indirect taxes are placed on goods and services which raise the price so that the consumer pays more for the item. ... The tax is added to the price of gas. The producer pays the tax to the state, and it's built into the price you pay for gas.
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