Answer:
Explanation:
The local school district will be opposed to any "generous tax holiday" because
A. What would probably be involved in a generous tax holiday? In this case, the "tax holiday" probably concerns exemption from Tax.
A tax holiday is granted by the government as an incentive to businesses that offers a tax reduction or elimination.
B. Select either "True" or "False" to indicate why the school district would oppose a generous holiday tax.
• Due to the erosion of the tax base, less revenue would be forthcoming to the school district. True
In accordance with the definition of a tax holiday which means reduction or elimination of Taxes, the school district will be in opposition to granting a tax holiday because it will amount to a reduction in revenue.
• The school district would only get a percentage of the tax holiday funds. False
This assumption and conclusion is not a possible deduction from the information in the scenario, however in the case that the tax holiday implies a reduction in tax payable, that will lead to only receiving part of what would have been expected as tax revenue.
• New workers would mean new families and more children to educate.
False
This assumption and conclusion is not a possible deduction from the information in the scenario and has no bearing with the meaning of a tax holiday.
