Budgets and Balancing

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  • Evaluate the disparity of Virginia;s budget allocation for education and property tax to the various localities. Based on your assessment, challenge or defend the equity of the system across the various localities.
  • Identify and explain your choices for reductions and increases. Discuss at least two lessons you learned about the challenge of balancing the federal budget.

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  • 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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