[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3916 Reported in Senate (RS)]






                                                       Calendar No. 662
106th CONGRESS
  2d Session
                                H. R. 3916

                          [Report No. 106-328]


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 25, 2000

     Received; read twice and referred to the Committee on Finance

                              July 5, 2000

 Reported under authority of the order of the Senate of June 30, 2000, 
                     by Mr. Roth, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 AN ACT


 
To amend the Internal Revenue Code of 1986 to repeal the excise tax on 
              telephone and other communication services.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. REPEAL OF FEDERAL COMMUNICATIONS EXCISE 
              TAX.</DELETED>

<DELETED>    (a) In General.--Chapter 33 of the Internal Revenue Code 
of 1986 (relating to facilities and services) is amended by striking 
subchapter B.</DELETED>
<DELETED>    (b) Phase-out of Tax.--Paragraph (2) of section 4251(b) of 
such Code (defining applicable percentage) is amended to read as 
follows:</DELETED>
        <DELETED>    ``(2) Applicable percentage.--The term `applicable 
        percentage' means--</DELETED>
                <DELETED>    ``(A) 2 percent with respect to amounts 
                paid pursuant to bills first rendered on or after the 
                30th day after the date of the enactment of this 
                subparagraph and before October 1, 2001, and</DELETED>
                <DELETED>    ``(B) 1 percent with respect to amounts 
                paid pursuant to bills first rendered after September 
                30, 2001, and before October 1, 2002.''.</DELETED>
<DELETED>    (c) Conforming Amendments.--</DELETED>
        <DELETED>    (1) Section 4293 of such Code is amended by 
        striking ``chapter 32 (other than the taxes imposed by sections 
        4064 and 4121) and subchapter B of chapter 33,'' and inserting 
        ``and chapter 32 (other than the taxes imposed by sections 4064 
        and 4121),''.</DELETED>
        <DELETED>    (2)(A) Paragraph (1) of section 6302(e) of such 
        Code is amended by striking ``section 4251 or''.</DELETED>
        <DELETED>    (B) Paragraph (2) of section 6302(e) of such Code 
        is amended--</DELETED>
                <DELETED>    (i) by striking ``imposed by--'' and all 
                that follows through ``with respect to'' and inserting 
                ``imposed by section 4261 or 4271 with respect to'', 
                and</DELETED>
                <DELETED>    (ii) by striking ``bills rendered 
                or''.</DELETED>
        <DELETED>    (C) The subsection heading for section 6302(e) of 
        such Code is amended by striking ``Communications Services 
        and''.</DELETED>
        <DELETED>    (3) Section 6415 of such Code is amended by 
        striking ``4251, 4261, or 4271'' each place it appears and 
        inserting ``4261 or 4271''.</DELETED>
        <DELETED>    (4) Paragraph (2) of section 7871(a) of such Code 
        is amended by inserting ``or'' at the end of subparagraph (B), 
        by striking subparagraph (C), and by redesignating subparagraph 
        (D) as subparagraph (C).</DELETED>
        <DELETED>    (5) The table of subchapters for chapter 33 of 
        such Code is amended by striking the item relating to 
        subchapter B.</DELETED>
<DELETED>    (d) Effective Dates.--</DELETED>
        <DELETED>    (1) Repeal.--The amendments made by subsections 
        (a) and (c) shall apply to amounts paid pursuant to bills first 
        rendered after September 30, 2002.</DELETED>
        <DELETED>    (2) Phase-out.--The amendment made by subsection 
        (b) shall apply to amounts paid pursuant to bills first 
        rendered on or after the 30th day after the date of the 
        enactment of this Act.</DELETED>

SECTION 1. REPEAL OF EXCISE TAX ON TELEPHONE AND OTHER COMMUNICATIONS 
              SERVICES.

    (a) In General.--Chapter 33 of the Internal Revenue Code of 1986 
(relating to facilities and services) is amended by striking subchapter 
B.
    (b) Conforming Amendments.--
            (1) Section 4293 of such Code is amended by striking 
        ``chapter 32 (other than the taxes imposed by sections 4064 and 
        4121) and subchapter B of chapter 33,'' and inserting ``and 
        chapter 32 (other than the taxes imposed by sections 4064 and 
        4121),''.
            (2)(A) Paragraph (1) of section 6302(e) of such Code is 
        amended by striking ``section 4251 or''.
            (B) Paragraph (2) of section 6302(e) of such Code is 
        amended by striking ``imposed by--'' and all that follows 
        through ``with respect to'' and inserting ``imposed by section 
        4261 or 4271 with respect to''.
            (C) The subsection heading for section 6302(e) of such Code 
        is amended by striking ``Communications Services and''.
            (3) Section 6415 of such Code is amended by striking 
        ``4251, 4261, or 4271'' each place it appears and inserting 
        ``4261 or 4271''.
            (4) Paragraph (2) of section 7871(a) of such Code is 
        amended by inserting ``or'' at the end of subparagraph (B), by 
        striking subparagraph (C), and by redesignating subparagraph 
        (D) as subparagraph (C).
            (5) The table of subchapters for chapter 33 of such Code is 
        amended by striking the item relating to subchapter B.
    (c) Study Regarding Continuing Economic Benefit of Repeal.--
            (1) Study.--The Comptroller General of the United States, 
        after consultation with the Chairman of the Federal 
        Communications Commission, shall study and identify--
                    (A) the extent to which the benefits of the repeal 
                of the excise tax on telephone and other communication 
                services under subsection (a) are passed through to 
                individual and business consumers, and
                    (B) any actions taken by communication service 
                providers or others that diminish such benefits, 
                including increases in any regulated or unregulated 
                communication service provider charges or increases in 
                other Federal or State fees or taxes related to such 
                service occurring since the date of such repeal.
            (2) Report.--By not later than September 1, 2001, the 
        Comptroller General of the United States shall submit a report 
        regarding the study described in paragraph (1) to the Committee 
        on Ways and Means of the House of Representatives and the 
        Committee on Finance of the Senate.
    (d) Effective Date.--The amendments made by this section shall 
apply to amounts paid pursuant to bills first rendered after August 31, 
2000.




                                                       Calendar No. 662

106th CONGRESS

  2d Session

                               H. R. 3916

                          [Report No. 106-328]

_______________________________________________________________________

                                 AN ACT

To amend the Internal Revenue Code of 1986 to repeal the excise tax on 
              telephone and other communication services.

_______________________________________________________________________

                              July 5, 2000

                       Reported with an amendment