Indirect Taxes are taxes placed upon goods by the national government, and collected before the goods are sold to the consumer.
The national government needs this money to pay:—
1. Interest on the public debt.
2. To support an army and navy, to build vessels, and keep up arsenals and forts.
3. To pay pensions.
4. To improve the rivers and harbors.
5. To pay the salaries of its officers; as, the president, cabinet officers, judges, ministers to foreign countries, congressmen, etc.
Indirect taxes are of two kinds, customs or duties, and excises or internal revenue.
Excises or internal revenue are taxes levied on certain domestic goods, as, manufactured tobacco, liquors, and the like.
Indirect taxes levied by the government on imported goods or merchandise are called duties or customs.