Recall the Application on State Lotteries and Distribution of Income,how

question 148

Multiple Choice

Recall the application on state lotteries and distribution of Income,how do government policies affect the distribution of income?

• A)Higher-income household contributes a larger percent of its income and more than the lower-income households.
• B)Lower-income household contributes a larger percent of its income.
• C)A low-income household spends about the same per yer on lotteries as a medium and high income households.
• D)B and C are correct.

---

Definitions:

Tax Withheld

The portion of an employee's income that an employer sends directly to the government as a payment of income taxes.

Federal Income Tax

The tax levied by the Internal Revenue Service on the annual earnings of individuals, corporations, trusts, and other legal entities.

FICA Tax

A U.S. federal payroll tax that funds Social Security and Medicare, requiring contributions from both employers and employees.

FUTA Tax

A federal tax in the United States imposed on employers to fund state workforce agencies and unemployment insurance.