An In the News article titled "Perpetuating Poverty: Lotteries Prey on the Poor" reports that poor people spend a larger percentage of their income on government-promoted gambling than do rich people. On the basis of this information, we can conclude that lotteries function as:_________.
A) An income tax.
B) A progressive tax.
C) A property tax.
D) A regressive tax.

Respuesta :

Answer:

D) A regressive tax.

Explanation:

A regressive tax is one in which as the amount being taxed increases the tax on it reduces. Being regressive implies that there is reduction in the tax as the taxable amount increases.

In this case poor people are spending a larger percentage of their income on government promoted gambling than the percentage spent by rich people. So lotteries function as regressive tax tool.