select the correct answer.\nthe property taxes on a house that alan owns and rents out have increased. to…

select the correct answer.\nthe property taxes on a house that alan owns and rents out have increased. to balance his monthly budget, he decides to increase his tenants rent by $10 per month. he will use the extra money to pay his property tax. in this scenario, what type of tax do his tenants pay?\na. direct tax\nb. estate tax\nc. excise tax\nd. gift tax\ne. indirect tax

select the correct answer.\nthe property taxes on a house that alan owns and rents out have increased. to balance his monthly budget, he decides to increase his tenants rent by $10 per month. he will use the extra money to pay his property tax. in this scenario, what type of tax do his tenants pay?\na. direct tax\nb. estate tax\nc. excise tax\nd. gift tax\ne. indirect tax

Answer

Brief Explanations:

Direct tax is paid directly by an individual or entity to the imposing authority. Estate tax is on property transferred at death. Excise tax is on specific goods and services. Gift tax is on the transfer of property as a gift. Indirect tax is passed - on to another party. Here, Alan passes on the burden of increased property tax to his tenants by raising rent, so it's an indirect tax.

Answer:

E. indirect tax