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Senators want to nix 1898 telecom tax (Spanish-American War Tax)
ZDNET ^ | June 30, 2005 | Declan McCullagh

Posted on 06/30/2005 11:53:03 AM PDT by nickcarraway

The Spanish-American War may have ended over a century ago, but anyone in the U.S. with a telephone line is paying a 3 percent "luxury" tax created to fund the conflict in 1898.

That's a situation that a number of Republican senators would like to change. This week, they introduced a bill to repeal the Spanish-American War levy.

"Common sense dictates that repeal of the telephone excise tax is long overdue," said Sen. Rick Santorum, R-Pa. "Communication is not a luxury. It has become part of the basic fabric of our social and economic life." Other sponsors of the Senate legislation include Republicans Mike Crapo of Idaho and Gordon Smith of Oregon. A related bill is pending in the House of Representatives.

The obscure telecommunications tax took center stage in January when a congressional committee suggested the tax could be extended to include "all data communications services" including broadband, dial-up, fiber, cable modems, cellular and DSL (digital subscriber line) links. In addition, the Internal Revenue Service and the Treasury Department have said they are considering whether the tax should apply to Internet phone calls.

Congress enacted the so-called "luxury" excise tax at 1 cent a phone call back in 1898, when only a few thousand phone lines existed in the country. It was repealed in 1902 but was reimposed at 1 cent a call in 1914 to pay for World War I and eventually became permanent at a rate of 3 percent in 1990.

A few years ago, the House of Representatives voted overwhelmingly to repeal the excise tax, but the Senate never acted on the measure.

The bill introduced this week, called the Telephone Excise Tax Repeal Act, isn't the only proposal aimed at defanging the tax. Sen. George Allen, a Virginia Republican, has proposed the more modest approach of preventing the IRS from extending the tax to the Internet--but not eliminating it altogether.


TOPICS: Business/Economy; Constitution/Conservatism; Culture/Society; Extended News; Foreign Affairs; Government; Miscellaneous; News/Current Events; Politics/Elections; US: District of Columbia
KEYWORDS: rememberthemaine; taxes; telecommunication; war
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I find it hard to believe any senators "want" to get rid of a tax. They'd still be taxing us on the Pelopponesian War if they could



Remember the Maine (When you pay your phone bill)

1 posted on 06/30/2005 11:53:06 AM PDT by nickcarraway
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To: nickcarraway
This comes up every session, and instead of repealing it they add another tax to your telephone bill, only they forbid the phone company from itemizing it on your bill.
2 posted on 06/30/2005 11:55:23 AM PDT by E. Pluribus Unum (Drug prohibition laws spawned the runaway federal health care monopoly and fund terrorism.)
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To: nickcarraway

We need to trash the "Gore Tax" too.


3 posted on 06/30/2005 11:57:46 AM PDT by isthisnickcool (Get all the incumbents out of politics!)
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To: nickcarraway
I'm not holding my breath waiting for Congress to nix the income tax and the IRS.

(Denny Crane: "Sometimes you can only look for answers from God and failing that... and Fox News".)
4 posted on 06/30/2005 11:59:20 AM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives On In My Heart Forever)
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To: nickcarraway

Remember MAINE .... as an example of what happens to an economy beset by crippling taxes and regulations.


5 posted on 06/30/2005 11:59:31 AM PDT by JohnnyZ ("I believe abortion should be safe and legal in this country." -- Mitt Romney)
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To: nickcarraway

I pay more in taxes and fees on my home phone bill than I do for the actual service. This seems to come up every session - I'll be shocked if it passes.


6 posted on 06/30/2005 12:03:26 PM PDT by centexan (God bless our troops)
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To: centexan
Not to be outdone, liberals in Alexandria, Virginia have imposed a $3 a month cell phone service tax. You get taxed for the privilege of using anything. Anything that can be taxed sooner or later will be taxed - and its the nearest thing we have to eternal life on earth next to government.

(Denny Crane: "Sometimes you can only look for answers from God and failing that... and Fox News".)
7 posted on 06/30/2005 12:06:16 PM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives On In My Heart Forever)
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To: nickcarraway

bttt


8 posted on 06/30/2005 12:16:57 PM PDT by BenLurkin (O beautiful for patriot dream - that sees beyond the years)
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To: nickcarraway
The Spanish/American War was a quagmire. When will bush apologize?
9 posted on 06/30/2005 12:19:07 PM PDT by Mike Darancette (Mesocons for Rice '08)
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To: All
Have you (everyone) ever looked closely at your telephone bill? There are so many taxes that have nothing to do with telephone srvice, it has become a de facto place to raise taxes without a refenderum or vote. My local municipality taxes my cell phone! What does the town I live in have to do with taxing my cell phone? Nothing. But taxing a telephone bill has become too easy for them to do, and with practically no one complaining about it, they get away with it.

Is the beeswax subsidy still in effect? How about the helium subsidy? Let's get rid of those while we are at it.

10 posted on 06/30/2005 12:21:18 PM PDT by Max Flatow
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To: nickcarraway

They aren't taxing us for the Pelopponesian War? That is a shock!


11 posted on 06/30/2005 12:29:27 PM PDT by Redleg Duke (Getting old sucks, but it is the only viable option! NRA)
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To: Redleg Duke

"They aren't taxing us for the Pelopponesian War? That is a shock!"

On the other hand, I do suspect that there is a fee for the Battle of Lepanto in there somewhere...


12 posted on 06/30/2005 12:33:18 PM PDT by Army Air Corps (Four fried chickens and a coke)
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To: Mike Darancette

Didn't President James Polk send 500 troops to Cuba in 1850 to invade that country? I think I remember it failed miserably. A second invasion was tried in 1851 without the support of President Millard Fillmore. I don't think that one worked either.


13 posted on 06/30/2005 12:35:22 PM PDT by Max Flatow
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To: JohnnyZ

Remember Maine, and remember the Maine.


14 posted on 06/30/2005 12:42:56 PM PDT by captain_dave
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To: Max Flatow
"A second invasion was tried in 1851 without the support of President Millard Fillmore. I don't think that one worked either."

I believe you are correct. And Helen Thomas covered it personally...she was the one with the most years of experience!

15 posted on 06/30/2005 12:43:08 PM PDT by Redleg Duke (Getting old sucks, but it is the only viable option! NRA)
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To: nickcarraway

Re: "Spanish-American War Tax"

One would think we would have that one paid for by now. ;-}


16 posted on 06/30/2005 1:13:24 PM PDT by Mark in the Old South (Sister Lucia of Fatima pray for us)
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To: Mark in the Old South
Nope, it's turned into a "quagmire". We'll probably be paying/involved it that war for at least as long as we've been fighting the "War on Poverty". BTW, have the demoncrats ever given us/anybody an exit strategy for their War on Poverty.
17 posted on 06/30/2005 1:45:36 PM PDT by skimbell
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To: skimbell
Re: "BTW, have the demoncrats ever given us/anybody an exit strategy for their War on Poverty."

LOL =^D
No, now that I think about it, they haven't. Perhaps we should ask them. You should consider that as a tagline.
18 posted on 06/30/2005 1:53:14 PM PDT by Mark in the Old South (Sister Lucia of Fatima pray for us)
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To: nickcarraway
I find it hard to believe any senators "want" to get rid of a tax. They'd still be taxing us on the Pelopponesian War if they could

---------------

You had to mention the only thing they're not taxing us for,

19 posted on 06/30/2005 1:55:36 PM PDT by Cheburashka
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To: nickcarraway
Who was it that said that a Federal tax is the nearest thing to immortality that any of us would ever see?

I think that 1898 qualifies!

20 posted on 06/30/2005 2:15:49 PM PDT by America's Resolve (Liberal Democrats are liars, cheats and thieves with no morals, scruples, ethics or honor!)
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