A. 1. B, 2. A, 3. C, 4. D, 5. E
B.
Policy Goal: Design with hybrid vehicles may drive in toll lanes without paying a toll.
Possible Tax Solution: Implement a congestion pricing system where hybrid vehicles are exempt from tolls during peak hours to incentivize their use and reduce traffic.
Policy Goal: Groceries are exempt from sales tax.
Possible Tax Solution: Enact a sales tax exemption for unprepared food items, including fresh produce, dairy, and bread, to reduce the cost of living for low- and middle-income families.
Policy Goal: Aerospace businesses that create at least 50 full-time jobs will receive an investment of at least $20 million in state funding over five years.
Possible Tax Solution: Offer a performance-based tax credit equal to a percentage of capital investment or payroll for aerospace companies that meet the job creation threshold, phased over five years.
Policy Goal: Developers of large tourist projects can have up to 25% of the cost credited to the state, which will return cash to the developer when they pay their taxes.
Possible Tax Solution: Provide a refundable tax credit equal to 25% of qualifying development costs, redeemable against future state income or business taxes, to stimulate tourism infrastructure.
Policy Goal: Many of the state’s largest employers are located in rural areas. The state wants to encourage people to live there so these businesses can grow and retain them in a way that is appealing to the workers who want to live near nature and have lower housing costs.
Possible Tax Solution: Introduce a relocation tax credit for individuals moving to designated rural counties, coupled with a property tax abatement for new homeowners, to make rural living more financially attractive.
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