Week 10 Discussion 2

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“General Taxes” Please respond to the following:

  • Review the following scenario and then analyze the impact of tax holidays on the budget.
    • Scenario: Several states have declared sales tax holidays for which
      the state does not collect sales tax on selected items for those day or
      days. In most instances, the holiday has applied to purchases of
      clothing and the period has been a week to 10 days in August. The
      primary reason is to provide a “back-to-school” discount as families get
      ready for the upcoming year; however, in recent years, some
      states have proposed or enacted holidays for hurricane survival
      supplies, gasoline, Energy Star appliances, and guns and ammunition.
    • You are the State Economic Director. Analyze the economic impact of tax holidays of up to 10 days in your state

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