Which of the following best describes direct taxes?

Direct taxes are best described as taxes that are imposed on income. This definition aligns with the fundamental nature of direct taxation, which involves levying taxes directly on individuals or entities based on their earnings or wealth. Income taxes are a prime example of a direct tax, as they are calculated based on the income an individual or business earns, and the taxpayer is responsible for paying this tax directly to the government.

In contrast, options such as taxes imposed on goods and services typically refer to indirect taxes, such as sales taxes or value-added taxes, where the tax burden is not directly on the consumer but rather on the seller, who passes on the cost to consumers. Other options describe categories of taxation that do not accurately reflect the nature of direct taxes, including voluntary taxes, which are not typically a characteristic of direct taxation, as direct taxes are obligatory. Therefore, the distinction primarily lies in the direct link between the taxation imposed and the income received by the taxpayer, confirming that option B is the most accurate description.