What is ghetto tax?

Ghetto tax refers to the extra cost that people living in low-income neighborhoods or areas with limited resources may pay for goods and services. It is also known as a poverty penalty or poverty tax. This can include higher prices for groceries, utilities, and transportation, and expensive loans or fees for banking or financial services. Ghetto tax can perpetuate a cycle of poverty in disadvantaged communities, as people may have less access to affordable resources and services, limiting their ability to improve their economic situation. It is a significant social issue that affects many people worldwide and underscores the systemic inequalities present in society.