January 17, 2006
3 Percent Fee On Cell Phones Started 107 Years Ago
This is wild! According to Channel 5 News, there is a 3 percent fee on every cell phone bill in America. The origin of the tax predates the invention of the cellular phone by nearly a century and supportis the war effort -- the Spanish-American War.
The fee began as a luxury tax on phones at the turn of the 19th Century. And we're all still paying for it today.
Phone bills donít specify that the tax originates from the Spanish-American War. It is labeled as the federal excise tax, which amounts to 3 percent of every monthly bill.
And now, at least three federal courts have ruled the tax illegal. Some lawmakers are demanding cell phone companies stop collecting the tax and refund three years worth of fees.
But for now, every time you make a cell phone call, you'll continue to pay for a war fought more than 107 years ago.
According to the Web site www.mywireless.org, you can ask the IRS for a refund of up to three years of past taxes. You can also contact members of Congress to ask them to repeal the tax altogether."
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