May 26, 2006
Wireless Consumers Get Excise Tax Reprieve
The U.S. Treasury Department has abandoned its legal dispute over the federal excise tax (FET) on long-distance telephone service.
The 108 year old FET was instituted in 1898 to finance the Spanish-American War, and adds 3% to the monthly bill of every wireless user in America. Today, there are more than 214 million estimated wireless subscribers in the nation.
... In recent months, the Internal Revenue Service had come under increasing pressure from wireless consumers to repeal the FET after five separate U.S. Circuit Courts of Appeals had found the federal surcharge to be illegal. The antiquated tax can be levied on phone calls wherein the charge varies based on the call's duration and distance traveled. The wireless industry abandoned such a tariff scheme several years ago in favor of offering consumers "all-distance" minutes.
"With the FET tax finally taking its rightful place aside the Spanish-American War in our history books, wireless consumers can now turn their attention and efforts to repealing discriminatory wireless taxes on the state and local level," said The Wireless Association President and CEO Steve Largent.
Largent was referring to the numerous state and local wireless-specific surcharges that contribute to the average wireless user in America paying 17% of his or her monthly bill in taxes and fees.
Related article:
-- U.S. May Stop, Refund Excise Tax On Phone Service
-- 3 Percent Fee On Cell Phones Started 107 Years Ago
The Permanent Link to this page is: http://www.textually.org/textually/archives/2006/05/012479.htm
