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Thursday, February 5, 2009

Rendell--Let Counties Raise Sales Tax--Give Half To Cities

Proposal Would Let Counties Hike Sales Tax
WHTM TV
Harrisburg, Pa. - Gov. Ed Rendell says other states have cut funding to counties significantly, in some cases by hundreds of millions of dollars. The governor says that shouldn't happen here, but in order to keep counties afloat he believes local leaders may need to bump up the sales tax.

The decision is up to individual county leaders. Rendell wants to give them the power to increase the sales tax from six-percent to as much as seven-percent.

Most residents appear to be against the idea.

"As long as it's an across the board raise and it's not staggered from county to county, I don't see the problem with it especially with the financial situation that's going on now," said Harrisburg resident Bob Bush.

"I don't have anything too profound to say except I pay enough," Sandy Gordon said.

A one-percent sales tax increase on a $20,000 vehicle means you'd pay an extra $200. Some lawmakers point out a non-uniform tax hike could affect where people do their shopping.

"If you're going to buy a car in Lancaster County or York County and one has the tax and one doesn't, where are you going to buy the car?" said Rep. Stan Saylor, R-York County. "What you're doing is pitting businesses in one county against another where you shop."

Where exactly would the new tax revenue go? Rendell suggests the counties would keep half, but financially-strapped cities would take the other half. Pittsburgh and Philadelphia already have a 7-percent sales tax.

Of course, the possible sales tax increase is a merely a proposal at this point and not a done deal. If it is approved, county commissioners would decide whether they want to adopt the hike and whether it's a full one-percent or a fraction thereof.

10 comments :

Anonymous said...

Can we talk NJ into annexing Philadelpia - THAT would be a huge tax savings!! :-)

Anonymous said...

Oh sure!!! Tax us here and give half of OUR money to Pittsburgh or Philly. When is this madness going to end ?

Solomon's words for the wise said...

It will end when Just Plain Joe Scarnati gets elected Governor in 2010.

Anonymous said...

He needs it for his welfare votes.

Anonymous said...

lol, annex Philly, that would be a great start!!

Anonymous said...

Raising the sales tax would be a disaster for Potter and other Northern Tier counties. 6% is plenty!

MT

Anonymous said...

We could just grow whatever it is that Big Ed is smoking and create some jobs too!If he is not on something, he must sleep alot to be able to dream this nonsense up.

Rep. Chick said...

"It will end when Just Plain Joe Scarnati gets elected Governor in 2010."
I am with you 100% on this one.
But at this point ANYONE would be better than Rendell~!!

Anonymous said...

When have we had enough of politics and underhanded dealing. Why should we fund the cities! Make the cities fend for themselves, cut there welfare roles and other give away projects. Put these people to work, earning there welfare. See how fast they would leave the state.

Anonymous said...

We all ready pay a tax on new tires for tractor trailers that goes for their city public transportation systems.

Yep, $2.00 on every new tire purchased.

Now that might not sound like a lot of money but do the math 18 wheels @ 2.00 tx per tire that is $36.00 per truck atleast 3 times a year if you get really good wear out of them, now that tax just sent $108.00 to the "city". If you own a fleet of trucks of 10 or so that is now $1080.00 from just one small business in the commonwealth!

Rendell is an idiot...I just hope the county leaders in the commonwealth will not fall for his plan.

Pay the tax here and send it there! Why should they benefit from our tax dollars anymore than they all ready do?