PHILADELPHIA Governor touts tax savings from slots plan

Gov. Ed Rendell hopes lawmakers will approve his combination proposal.
PHILADELPHIA (AP) -- Gov. Ed Rendell said city and suburban residents would save hundreds of dollars each on wage and property taxes if lawmakers settle their differences and legalize slot machines to pay for his tax-relief proposals.
People who live and work in Philadelphia and earn $50,000 a year would pay $321 less in wage taxes each year; suburban residents working in the city for that wage would see a $126-a-year reduction, Rendell said Monday.
Suburban residents would get smaller city wage-tax cuts because they also would benefit from property-tax reductions, which Rendell said would range from $323 a year in Norristown to $518 a year in Coatesville under his plan.
Rendell said he was urging lawmakers to pass the legislation in March so taxpayers could begin to reap the benefits next year.
"This ... goes to the lifeblood of the city, the competitiveness of the city," he said.
Rendell said legalized gaming apparently was the only way lawmakers would consider raising money to cut taxes. "It is necessary because the Legislature is unwilling to provide any other funding mechanism," he said.
Combined proposal
Rendell has combined elements of several stalled gambling bills into a single proposal he hopes lawmakers can agree on.
The House and Senate had passed separate bills to legalize slot machines, but lawmakers failed to agree to a compromise on points including how to distribute revenue to 500 school districts for property tax reductions, and to Philadelphia to compensate for cutting the wage tax.