U.S. Treasury Dept. ends long-distance phone tax

May 25, 2006

The U.S. Treasury Department said it will eliminate the long-distance telephone excise tax.

Following the decision, the Internal Revenue Service will be issuing tax refunds on long-distance services for the past three years, and taxpayers will be able to apply for refunds on their 2006 tax forms, to be filed in 2007.

The decision "marks the beginning of the end of an outdated, antiquated tax that has survived a century beyond its original purpose, and by now should have been ancient history," Treasury Secretary John Snow said in a statement. "I would like to call on Congress to terminate the remainder of this antique tax by repealing the excise tax on local service as well."

The tax was first introduced in 1898 as a "luxury" tax on wealthy citizens who owned telephones.

Copyright 2006 by United Press International

Explore further: Cruising high seas, engineers detect fake GPS signals

add to favorites email to friend print save as pdf

Related Stories

Social Security spent $300M on 'IT boondoggle'

3 hours ago

(AP)—Six years ago the Social Security Administration embarked on an aggressive plan to replace outdated computer systems overwhelmed by a growing flood of disability claims.

Cheaper wireless plans cut into AT&T 2Q profit

3 hours ago

(AP)—AT&T posted lower net income for the latest quarter due to cheaper cellphone plans it introduced as a response to aggressive pricing from smaller competitor T-Mobile US.

Awarded a Pell Grant? Better double-check

3 hours ago

(AP)—Potentially tens of thousands of students awarded a Pell Grant or other need-based federal aid for the coming school year could find it taken away because of a mistake in filling out the form.

Recommended for you

Microsoft unveils Xbox in China as it faces probe

3 hours ago

Microsoft on Wednesday unveiled its Xbox game console in China, the first to enter the market after an official ban 14 years ago, even as it faces a Chinese government probe over business practices.

Teens love vacation selfies; adults, not so much

4 hours ago

(AP)—Jacquie Whitt's trip to the Galapagos with a group of teenagers was memorable not just for the scenery and wildlife, but also for the way the kids preserved their memories. It was, said Whitt, a "selfie ...

Tiny UAVs and hummingbirds are put to test

5 hours ago

Hummingbirds in nature exhibit expert engineering skills, the only birds capable of sustained hovering. A team from the US, British Columbia, and the Netherlands have completed tests to learn more about the ...

US spy agency patents car seat for kids

7 hours ago

Electronic eavesdropping is the National Security Agency's forte, but it seems it also has a special interest in children's car seats, Foreign Policy magazine reported Wednesday.

User comments : 0