Under the plan, Rendell would lower the sales tax from 6 percent to 4 percent (from 8 percent to 6 percent in Philadelphia, where the last 2 percent goes to the city). But he would spread it out to cover 74 items and services - think bar tabs, accountants, and lawyers - some of which have been exempt from the tax for years.
And that, Rendell said yesterday, is no accident.
"The sales tax today is a testament to the power of lobbyists and special interests," the governor told a joint session of the General Assembly. "There is little rhyme or reason why we tax some items or services and wholly exempt others."
Rendell's proposal comes in an election year in which legislators are loath to tackle any measure involving the dreaded T word - tax.
And yesterday, Republicans who control the state Senate quickly smacked down the idea, characterizing it as a veiled tax increase destined for defeat.
"It's dead on arrival," said Senate President Pro Tempore Joe Scarnati (R., Jefferson) moments after Rendell unveiled his budget.
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