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Senators don't want 1898 tax to hit Net
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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 It was repealed in 1902 but was reimposed at 1 cent a call in 1914 to pay for World War I and eventually became permanent at a rate of 3 percent in 1990.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.
See more CNET content tagged:
tax, senator, luxury, telecommunications, Republican
a) if they repeal the tax, 90% of congress will claim that "if we eliminate this tax, we will have to raise taxes somewhere else to make up for it" (see the Alabama Civil War widow's fund) and
b) there is a 100% chance they'll stick some rider onto the bill raising that other tax or instituting some completely unrelated legislation that increases soybean subsidies or provides funding for some lameduck senator's marble statue to be erected in his homwtown.
a) if they repeal the tax, 90% of congress will claim that "if we eliminate this tax, we will have to raise taxes somewhere else to make up for it" (see the Alabama Civil War widow's fund) and
b) there is a 100% chance they'll stick some rider onto the bill raising that other tax or instituting some completely unrelated legislation that increases soybean subsidies or provides funding for some lameduck senator's marble statue to be erected in his homwtown.
We're doomed!! The good times are over!!
We're doomed!! The good times are over!!
Balance the budget!
The National Debt clock is at damn near 8,000,000,000,000 dollars. That's the problem. Either you pay up now or you pass the buck to future generations.
Balance the budget!
The National Debt clock is at damn near 8,000,000,000,000 dollars. That's the problem. Either you pay up now or you pass the buck to future generations.
A tax enacted, unless written to expire or requiring re-authorization, never go away.
What I would like to know what has been done with all the money collected? Is the GAO going to audit the income / expenses since 1898 and see if it has ONLY been spent on the Spanish American War, veteran benfits, World War I funding and those related expenses? Are the people collecting it and mis-using the funds going to be put in jail for mis-appropraition of Federal Funds?
This tax is like a sales tax - once enacted the funds are never accounted for and no one is responsible for use - or misuse - of them.
Which is why politicans love sales and excise taxes!
A tax enacted, unless written to expire or requiring re-authorization, never go away.
What I would like to know what has been done with all the money collected? Is the GAO going to audit the income / expenses since 1898 and see if it has ONLY been spent on the Spanish American War, veteran benfits, World War I funding and those related expenses? Are the people collecting it and mis-using the funds going to be put in jail for mis-appropraition of Federal Funds?
This tax is like a sales tax - once enacted the funds are never accounted for and no one is responsible for use - or misuse - of them.
Which is why politicans love sales and excise taxes!
State Regulatory Fee: $0.02
Federal Universal Service Fee: $0.49
CA 911 tax: $0.02
CA High Cost Fund B: $0.07
CA Relay Service: $0.01
CA Universal Lifeline: $0.04
Fed Universal Service Fund: $0.50
Regulatory Surcharges: $0.01
The Federal Universal Service Fee was recently raised 100% to $0.02
======
$6.17 taxes, surcharges, and other fees
Basic service: $10.69
% tax = 60%
Does anybody think a 60% tax is a bit too high?
I'd be all for removing all these taxes and levies, and replacing them with increased graduated income tax that lets the highest earners pay a bigger share instead of applying levies like this flatly across the high and low wage earners. While I'm dreaming, I'd like to see interest, dividends, capital gains, and any other income that you don't "work" for to be taxed higher, not lower, than earned wages.
What's more, in my fantasy-land, the budget would balance by automatically raising income tax to meet any new spending. THAT would slow down Congressional spending increases and the financing of unnecessary wars.
Now... I can't figure out whether I'm fiscally conservative or liberal.
If you don't speak up, then they will continue their trend of overtaxing everything they can get their hands on. Here are links to contact your representatives:
http://www.senate.gov/general/contact_information/senators_cfm.cfm
http://www.house.gov/writerep/
State Regulatory Fee: $0.02
Federal Universal Service Fee: $0.49
CA 911 tax: $0.02
CA High Cost Fund B: $0.07
CA Relay Service: $0.01
CA Universal Lifeline: $0.04
Fed Universal Service Fund: $0.50
Regulatory Surcharges: $0.01
The Federal Universal Service Fee was recently raised 100% to $0.02
======
$6.17 taxes, surcharges, and other fees
Basic service: $10.69
% tax = 60%
Does anybody think a 60% tax is a bit too high?
I'd be all for removing all these taxes and levies, and replacing them with increased graduated income tax that lets the highest earners pay a bigger share instead of applying levies like this flatly across the high and low wage earners. While I'm dreaming, I'd like to see interest, dividends, capital gains, and any other income that you don't "work" for to be taxed higher, not lower, than earned wages.
What's more, in my fantasy-land, the budget would balance by automatically raising income tax to meet any new spending. THAT would slow down Congressional spending increases and the financing of unnecessary wars.
Now... I can't figure out whether I'm fiscally conservative or liberal.
If you don't speak up, then they will continue their trend of overtaxing everything they can get their hands on. Here are links to contact your representatives:
http://www.senate.gov/general/contact_information/senators_cfm.cfm
http://www.house.gov/writerep/
"Senators want to nix 1898 telecom tax" to "Senators want to add new tax for people without Telephone service tax"
"The above new tax is reported to generate the same revenue as the already over taxed phone service by requiring everyone to pay Telecom taxes with or without phone service."
Just a little humour to humour our days. :)
- New headline change
- by July 1, 2005 3:04 PM PDT
- How about this one for a headline and article?
- Reply to this comment
-
(30 Comments)"Senators want to nix 1898 telecom tax" to "Senators want to add new tax for people without Telephone service tax"
"The above new tax is reported to generate the same revenue as the already over taxed phone service by requiring everyone to pay Telecom taxes with or without phone service."
Just a little humour to humour our days. :)