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  (PA) Sales tax increase expected
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ContributorScottĀ³ 
Last EditedScottĀ³  Feb 05, 2007 12:35pm
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CategoryNews
MediaNewspaper - Pittsburgh Post-Gazette
News DateMonday, February 5, 2007 06:00:00 PM UTC0:0
DescriptionPittsburgh Post-Gazette article.

An excerpt...
"State Senate Republicans and Democrats expect Gov. Ed Rendell to call for a 1 percentage point increase in the current 6 percent state sales tax when he unveils his 2007-08 budget proposal on Tuesday.

The sales tax in Allegheny and Philadelphia counties, which is already at 7 percent, would go to 8 percent.

Sen. Gibson Armstrong, R-Lancaster, chairman of the Senate Appropriations Committee, said today Mr. Rendell told him about a week ago that he wanted to increase the sales tax as a way to generate additional funds for property tax relief and deal with other rising budget costs, such as medical assistance for the poor.

An official on the Senate Democratic side, who asked not to be named, said he has heard the same thing.

"I think a sales tax increase will be an extremely difficult for people on both sides of the aisle,'' Mr. Armstrong said. "How do you convince the newer legislators to put up a vote for an increase in the sales tax?'

Many of the 55 new members of the House and Senate made a no-tax-increase pledge during their campaigns.

State Rep. David Levdansky, R-Forward, chairman of the House Finance Committee, said he hadn't heard about the proposed sales tax increase but he said that significant additional funds will certainly have to be raised from some source for 2007-08."
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