Wednesday, May 24, 2006

U.S. Treasury Ends Long-Distance Telephone Excise Tax

After 108 years, the U.S. Treasury will end collection of the long distance telephone excise tax and the Internal Revenue Service (IRS) will issue refunds of tax on long-distance service for the past three years.

The tax was originally imposed in 1898 as a "luxury" tax on wealthy Americans who owned telephones and was established to help fund the Spanish-American War.

In a statement, Treasury Secretary John Snow called on Congress "to terminate the remainder of this antique tax by repealing the excise tax on local service as well."

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