Nestled in Gov. Rendell's $29 billion state budget he proposed Tuesday (Feb.9) lies a paradox. He wants to lower the state sales tax
rate from six percent to four percent, yet increase sales tax
revenue by $534 million. How can he perform this Houdini-like trick? Simple. Rendell wants to expand the list of
items that can be taxed. Traditionally, the sales tax has been levied on goods. Now, he wants to impose it on services. The list includes legal bills, doctor's visits, accountant fees. The Inquirer offers an
overview on the budget plan and an
in-depth look at it from the always reliable Pennsylvania State Budget and Policy Center. Now, the budget is in the hands of the legislature. God help us.
