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FRONT PAGEState Lotteries: A Tax on the Uneducated and the PoorAmericans now spend over $85 billion a year on lottery tickets. That's more than we

FRONT PAGEState Lotteries: A Tax on the Uneducated and the PoorAmericans now spend over $85 billion a year on lottery tickets. That's more than we spend on sporting events, books, video games, movies, and music combined. That spending works out to about $650 a household.Poor people are proportionally the biggest buyers of lottery tickets. Households with less than $25,000 of income spend $1,100 a year on lottery tickets. By contrast, households with more than $50,000 of income buy only $300 of lottery tickets each year.Education also affects lottery spending: 2.7 percent of high school dropouts are compulsive lottery players, while only 1.1 percent of college grads play compulsively. Because lottery games are a sucker's game to start withpayouts average less than 60 percent of saleslotteries are effectively a regressive tax on the uneducated and the poor.Source: Research on lottery sales.

According to Front Page Economics, what percentage of income is spent on lottery tickets by

a. a low-income family with an income of $20,000 per year?

b. a middle-income family with an income of $60,000 per year?

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