Rendell Wants to Change PA Sales Tax

Facing a $3 billion deficit in its pension funds, Governor Ed Rendell is planning to propose dramatic changes to Pennsylvania's sales tax system... The governor is planning to propose lowering the rate by one or even two percentage points. He also wants to expand the sales tax base (i.e., subject more purchases to tax). He will likely focus on eliminating dozens of exemptions in the system..

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This is good tax policy. A sound system is built on a broad base and low rates. Such a move would also do a great deal to alleviate some of the financial woes facing the Commonwealth.

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View TaxAnalysts' David Brunori's opinion in its entirety on TAX.com.