108-Year-Old “Temporary Tax” Must Go!
Washington, DC — “On behalf of the 60 Plus Association and senior citizens all across America, I am pleased to note that H.R. 1898 sponsored by Rep. Gary Miller (R-CA) has gained its 218th cosponsor this week, marking an historic opportunity for the 109th Congress to once and for all repeal the 3% federal excise telephone tax — a tax we’ve referred to for years now as the highly regressive ‘tax on talking.’
This outdated tax hurts the poor and disadvantaged and is certainly an impediment to senior citizens, especially those on fixed incomes.
Look at your next phone bill. The ‘Federal excise tax’ is the smokescreen tax imposed to pay for the 1898 Spanish-American War.
The Spanish-American War was waged at a time when telephones were considered a luxury and as is always the case, the ‘rich’ were taxed for this luxury. (Shades of the estate, nee ‘death’ tax, imposed as a temporary tax to finance war efforts!) Can any clear thinking person today consider the ubiquitous telephones, cell phones or internet access we enjoy — as a “luxury” or something only enjoyed by the so-called “rich”? Of course not. Everyone pays this tax, but the heaviest burden falls on the least-able.
The 60 Plus Association calls for its permanent repeal immediately — or until such time as the Spanish-American War flares up again. As a personal aside, my recently-deceased stepfather who passed on at a remarkable 105 years of age, quipped to me once how he’s paid this tax 85 years! He said, ‘Jim, all those dollars could have paid for a lot of prescription drugs’ and he’s certainly right about that!
In 2000, similar legislation was offered by former Congressmen Rob Portman (R-OH) and Robert Matsui (D-CA) but was vetoed by then President Clinton. That was a shame, for it was a true bi-partisan effort with repeal embraced by the overwhelming majority in the House 420-2. Today, I’d think H.R. 1898 offers a chance for Congress to pass legislation supported by both sides of the political spectrum, void of all the partisan rancor so common on the Hill today. In that regard, 60 Plus also commends Sen. Rick Santorum (R-PA) for sponsoring companion legislation, S. 1321.
Having worked on Capitol Hill for over 40 years, I’ve seen lots of taxes come but precious few go. Surely the time has come for this tax to go. Further, I congratulate Americans for Tax Reform for leading this most recent charge up San Juan Hill, so to speak, to abolish this tax.”
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