PFBlog logo

My Personal Finance Journey

Personal finance observation, musing and decisions in a journey toward financial independence by 36 with at least $1 million.

  Home | Feed: feed-icon.gif | About | Progress: June 07: $756,924 | Best of PFBlog | Product Reviews | PFBlog Digest | Disclaimer | Advertise | Contact Me

...

Phone Service Excise Tax May End Soon?





Good news that at the very least, we have a bit more transparency of our phone bills. I'm also looking forward to my refund check now.

By the way, did anyone know that this excise tax was enacted in the 19th century?

From Wall Street Journal:

The Treasury Department, following a series of hostile court rulings on the way it assesses the federal excise tax on phone service, is working on a plan to stop collecting the levy and refund billions of dollars to consumers and businesses, according to people familiar with the matter.

...

The law -- originally enacted to help pay the costs of the Spanish-American War -- taxes telecom services based on both the duration of a call and the distance it travels. But the changing nature of technology now lets phone companies offer flat rate per minute or monthly plans. The government, however, has continued to assess the tax under the old services, sparking widespread protest.

When the tax was enacted in 1898, telephone service was something of a luxury and the levy affected relatively few Americans. As telecommunications expanded to become a fixture of modern life, the tax has become a steady revenue stream that administrations of both political parties have been loath to surrender. In 2000, Congress repealed the tax, at an estimated five-year cost of $24 billion. Former President Clinton vetoed the measure over budget concerns.

What do you think of this post? Be the first to share your opinions.

Enjoy the latest personal finance news and commentary at PFBlog Network.
Similar Posts

What? Tax Hike for Expatriates? (May 20, 2006)
Am I exposed to another five-figure tax bill? This is not good news.
At H&R Block, "Simple Pay" Is Not Simple (April 15, 2006)
Now wonder why both online versions of H&R Block's TaxCut and Quicken's TurboTax do not want you to pay the tax preparation fee upfront. By deducting the fee from your tax refund, these shops are positioned to make $20 or $30 more. H&R Block is ...
Dirty Little Deadline Secret (April 13, 2006)
For most people, missing the tax filing deadline is nothing to be worried about. After all, if IRS owes you, there is no penalty in filing late.
Letting the IRS Do Your Taxes for You (April 12, 2006)
This kind of proposal will surely meet huge headwind from the commercial tax preparation business. A more plausible proposition is to provide a reliable feed of automatically collected information to these tax preparation firms to save time for tax filers and tax preparers.

Read all 12 articles in the same category.

Read More ... All Other Posts In The Same Category

PREMIUM SPONSORS

Car Loans
Dallas Bankruptcy Attorney
Personal Loans
Car Finance
Homeowner Loans
Cheap Car Insurance
Mortgages UK & CCJ Mortgage
Used Cars
Loans
Commercial Mortgages and Business Loans
Guaranteed Car Finance
Payday Loan
Personal Loan
Student Loan Consolidation.com
Secured Loans
Bad Credit Loans - Free Quote