Question

George who earns $45,000 and Mary who earns income $80,000 both spend $50 buying lottery tickets. [So both paid the same amount of $50]

A) Income Tax
B) Sales Tax
C) Property Tax
D) Excise Tax

Answer 1

The information provided does not directly indicate which tax is applicable to the purchase of lottery tickets by George and Mary. However, excise tax may be relevant if it's applied to lottery tickets, and sales tax could be included in the purchase price.

Step-by-step explanation:

The situation described in the question involves George and Mary spending money on lottery tickets, and the question presents four different types of taxes: income tax, sales tax, property tax, and excise tax. Given that both individuals are spending money on lottery tickets and not directly earning or owning property, the appropriate type of tax here is not clearly linked to the scenario.

Excise tax is typically imposed on specific goods, such as cigarettes or alcohol, and since lottery tickets are a specific good, it could be the right answer. However, this scenario does not clearly indicate that. Sales tax could be applicable since the overall price could include a sales tax component. Income tax and property tax are not directly related to the transaction of buying lottery tickets.