[Congressional Record Volume 152, Number 68 (Friday, May 26, 2006)]
[Extensions of Remarks]
[Page E998]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      FEDERAL TELEPHONE EXCISE TAX

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                      HON. MICHAEL G. FITZPATRICK

                            of pennsylvania

                    in the house of representatives

                         Thursday, May 25, 2006

  Mr. FITZPATRICK of Pennsylvania. Mr. Speaker, I rise today to say 
good riddance to an outdated, antiquated tax that has long outlived its 
usefulness--the long distance telephone tax. This tax is known to many 
Americans only as another indiscernible line on their phone bill which 
reads as an access fee or charge for service.
  But in fact, this tax began as part of the War Revenue Act of 1898 as 
a temporary means to finance the Spanish American War. Interestingly, 
this wasn't the only onerous tax in the War Revenue Act. The Act also 
gave us the much debated estate tax.
  Back then, the excise tax was designed to be a luxury tax for people 
who owned telephones. Today, the war is ancient history and if you ask 
anyone walking down the street to join you in shouting ``Remember the 
Maine,'' I'd expect you to get quizzical stares. Today, there is no 
specific purpose for this tax. Telephones are a virtual necessity--not 
a luxury--and the revenues collected by this tax flow into the general 
fund. But this once temporary tax remains and costs American taxpayers, 
our small businesses and families almost $6 billion dollars a year.
  On the tax, Gene Kimmelman, director of Consumers Union is quoted as 
saying, ``this is the poster child for how messed up our telephone 
pricing system is today. It makes no sense to have to pay a tax to 
fight a war that was over more than 100 years ago.'' Well today the tax 
has been repealed.
  Americans will soon be able to file for a refund as part of their 
2006 tax return for the past three years of charges and the Treasury 
Department estimates that $15 billion will be refunded to the American 
public.
  I encourage all Americans to take advantage of this opportunity to 
get their returns and I call on my colleagues to set their sights on 
ending this tax's equally unnecessary counterpart, the local telephone 
excise tax. These are outdated, out-of-touch taxes and they should all 
be removed from the tax code.

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