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Economics Unit

With the decline in business in Contractile the tax base will drop. There will be smaller amount of businesses and people paying taxes. 2) The operating budget would decrease because of the decline in businesses. Increase fines for testing while driving, drunk driving, tailgating, aggressive driving, public intoxication, toll violations and other crimes. Increase fines for all violators of health and safety regulations in business, especially the food service industry. Lower the taxes can increase economic activity and provides incentives for taking risks in investments. 2) Increasing fines for individuals or businesses. 1) A. By using the capital funds from the other project to buy the warehouse. B. The By masseuse 2) There will be more revenue from the sales and more Jobs for people of the city. 3)

Tax deductions for energy savings. Corporate income tax credit. Sales tax exemption. Payroll tax deductions. Part 4 – Summary questions 1) Challenges to implement a fair tax system: a. People agreeing on a fair tax system. It seems that most will not agree on every aspect of creating a fair tax system. B. Implementing a fair tax system would take power out of the hands of politicians. C. The poor would suffer

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more than the wealthy with a fair tax system. 2) Sales tax. Each person is charged at the same rate on their purchases. The wealthy will pay more sales tax because they have more disposable income.

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