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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
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." Source: Riley Griffin and Katia Dmitrieva, "Lotteries Are Doing More Damage to Those Who Can Least Afford It," bloomberg.com, September 12, 2018. Ahmad Jamal et al., "Current Cigarette Smoking among Adults in 2017," cdc.gov, February 4, 2019. a. In what sense is a state-run lottery like a tax? A. A state-run lottery performs well in meeting the ability-to-pay principle similar to the federal income tax. B. It involves the payment of funds from the government to individualslong dashthat is, it is like a social insurance tax. C. It involves the payment of funds from individuals to the governmentlong dashthat is, it raises revenue for the government. D. Since low-income households spend a higher percentage of their income on lottery tickets than do people with higher incomes, it is like a progressive tax
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