Why do we add indirect business taxes(sales taxes,excise taxes) to the national income when we compute GDP using the income approach?

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Please note that when you use the income approach you are actually subtracting these indirect taxes, not adding them.  (You can say they're being added, but if you are adding them, you are adding them as a negative number).

The reason you need to do this is because indirect taxes...

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Please note that when you use the income approach you are actually subtracting these indirect taxes, not adding them.  (You can say they're being added, but if you are adding them, you are adding them as a negative number).

The reason you need to do this is because indirect taxes like this are not really part of a business's income.  The business does take this money in when it sells goods, but the money is then passed on to the government.  It is not really part of the prices of the good or service and therefore it should not be counted in GDP.

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