Dec 10
Spanish-American War Tax Still Being Collected!
WASHINGTON, D.C. -- The Spanish-American War ended in 1898. In fact, it only lasted from April to August of that year. But one thing has lived on longer than the participants in that war: a federal tax on telephones that was said to be "temporary."
Fortunately, U.S. Rep. Ed Royce (R-CA-39) today voted with the House to repeal the "tax on talking." Royce was a cosponsor of the bipartisan bill [H.R.3916] which passed by a vote of 420-2. The measure now moves to the Senate for consideration.
"Only Washington could extend a tax 102 years. And only Washington would think to tax talking. Itβs so unbelievable that itβs a perfect candidate for βRipleyβs Believe It or Notβ," Royce said. "I would think that after 102 years, we would have paid off the five months of the Spanish-American War. This tax should have ended with it."
Congress first enacted a telephone excise tax in order to help pay for the 1898 Spanish-American War, which lasted only five months. At the time, this "temporary" tax amounted to a penny on long-distance phone calls costing more than 15 cents. Over the years, the federal phone tax has survived efforts to phase it out and scale it back. Congress made it a permanent 3 percent tax on telecommunications services in 1990.
"What else is there on the books? A surcharge for the Civil War?* A tax to pay for World War I? Maybe thereβs a tariff on candles to pay for the Revolutionary War still being collected," Royce said.
"The Spanish-American War ended more than 100 years ago; this tax should have ended with it," Royce said. "We must send a message that no longer will βtemporary taxesβ be permanent. **** this unnecessary tax."
Of the 105.4 million households in America, 99.1 million (94 percent) have telephone service. This telephone tax repeal would provide tax relief to every one of those households. Additionally, due to the rapid pace of technological change, the difference between traditional telecommunications, the Internet and other technologies is increasingly unclear. If the federal phone tax remains on the books, it would jeopardize recent efforts to keep the Internet free from taxation.
*Actually, there is -- the estate tax (death tax) is a relic from the Civil War, and the first federal income tax began during that period.
WASHINGTON, D.C. -- The Spanish-American War ended in 1898. In fact, it only lasted from April to August of that year. But one thing has lived on longer than the participants in that war: a federal tax on telephones that was said to be "temporary."
Fortunately, U.S. Rep. Ed Royce (R-CA-39) today voted with the House to repeal the "tax on talking." Royce was a cosponsor of the bipartisan bill [H.R.3916] which passed by a vote of 420-2. The measure now moves to the Senate for consideration.
"Only Washington could extend a tax 102 years. And only Washington would think to tax talking. Itβs so unbelievable that itβs a perfect candidate for βRipleyβs Believe It or Notβ," Royce said. "I would think that after 102 years, we would have paid off the five months of the Spanish-American War. This tax should have ended with it."
Congress first enacted a telephone excise tax in order to help pay for the 1898 Spanish-American War, which lasted only five months. At the time, this "temporary" tax amounted to a penny on long-distance phone calls costing more than 15 cents. Over the years, the federal phone tax has survived efforts to phase it out and scale it back. Congress made it a permanent 3 percent tax on telecommunications services in 1990.
"What else is there on the books? A surcharge for the Civil War?* A tax to pay for World War I? Maybe thereβs a tariff on candles to pay for the Revolutionary War still being collected," Royce said.
"The Spanish-American War ended more than 100 years ago; this tax should have ended with it," Royce said. "We must send a message that no longer will βtemporary taxesβ be permanent. **** this unnecessary tax."
Of the 105.4 million households in America, 99.1 million (94 percent) have telephone service. This telephone tax repeal would provide tax relief to every one of those households. Additionally, due to the rapid pace of technological change, the difference between traditional telecommunications, the Internet and other technologies is increasingly unclear. If the federal phone tax remains on the books, it would jeopardize recent efforts to keep the Internet free from taxation.
*Actually, there is -- the estate tax (death tax) is a relic from the Civil War, and the first federal income tax began during that period.
