Question

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.

Answer 1

Answer: (D) A regressive tax

Explanation:

 According to the given question, the lotteries function is refers as a regressive tax on the basis of given data or information as regressive tax is one of the type of tax that basically describe about the given distributing effect in terms of expenses and earning.

This type of tax basically required the larger portion of the income from the earners and the main purpose of a regression tax is that the marginal rate of the tax become increase. The taxation process also affect the necessary requirements and living standards.  

 Therefore, Option (D) is correct answer.