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The U.S.federal government offers homeowners a tax deduction for their home loan interest payments. This reduction in taxes may have encouraged too many people to own homes. If the tax deduction caused people who otherwise would have rented to own, the tax deduction serves as a(n) incentive. 1. indirect 2. direct 3. complementary 4. unintended 5.neutral

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osondumartins

Answer:2. DIRECT

Explanation: Direct taxes are levies imposed directly on its citizens by Government,they are levies on INCOME EARNED, PROPERTIES. Direct taxes can not be transferred to another party or business,Direct taxes are different from indirect taxes because indirect taxes can be imposed on Goods and services offered in the community. Indirect taxes are such as VAT(value added tax).

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