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

select the correct answer. the 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? a. direct tax b. estate tax c. excise tax d. gift tax e. indirect tax

select the correct answer. the 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? a. direct tax b. estate tax c. excise tax d. gift tax e. indirect tax

Answer

Brief Explanations:

The tenants are indirectly paying the property - tax through the increased rent. An indirect tax is a tax that is shifted from one entity to another. Here, Alan shifts the burden of increased property - tax to his tenants by raising the rent.

Answer:

E. indirect tax