Many states have begun raising revenue by operating lotteries rather than through direct taxes. According to an
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Many states have begun raising revenue by operating lotteries rather than through direct taxes. According to an article on bloomberg.com, “The lowest-income households in the U.S. on average spend $412 annually on lottery tickets, which is nearly four times the $105 a year spent by the highest-earning households.”
a. In what sense is a state-run lottery like a tax?
b. If a lottery can be thought of as a tax, is it regressive or progressive? Briefly explain.
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