The main difference between direct and indirect taxes is that
A. indirect taxes are automatically deducted from workers’ paychecks and direct taxes are not.
B. direct taxes are paid to state and local governments and indirect taxes are paid to the federal government.
C. direct taxes are taxes levied on people and indirect taxes are taxes levied on activities undertaken by people.
D. direct taxes are usually proportional and indirect taxes are usually progressive.
Answer: C
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