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On an upcoming segment of Comcast Newsmakers, the PA Chamber outlines its members' concerns about the Rendell administration's plans to expand the state sales tax base.

During his February state budget address, Gov. Ed Rendell announced plans to lower the sales tax rate from 6 percent to 4 percent, while expanding the base to more than 74 new items and services, including business services.

As pointed out on the program and in a letter sent recently to state House and Senate lawmakers, a sales tax on business services is counter to what many tax experts believe is sound tax policy, and would result in double taxation for some final goods and services.

One recent study concluded that the business share tax burden of an expanded sales tax on business services would be:

• 98 percent for advertising services
• 96 percent for architectural and engineering services
• 94 percent for employment services
• 88 percent for management and technical services
• 84 percent for data processing services
• 71 percent for accounting and legal services
• 66 percent for securities and investment services

Under the governor's proposal, companies would be forced to either pass the new sales tax costs on to consumers or reduce their economic activity in Pennsylvania in order to remain competitive with states and nations that do not have such an increased tax burden. This could lead to a reduction in investment and employment in Pennsylvania.

To read the PA Chamber's letter to lawmakers, click here.

To read items that would no longer be exempt from the state sales tax under the governor's plan, click here.

Comcast Newsmakers airs on the Headline News Channel on Comcast Cable.