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Refund of Long-Distance Telephone Taxes

pertelote writes "Over 108 years after financing the Spanish American War, the tax on long-distance phone calls is finally being repealed. The IRS is supposed to refund our last three years worth of taxes for both landlines and cell phones on our returns next year. The phone companies sued because they did not want the hassle of collecting the tax. The tax is no longer in effect on 31 July, 2006." Don't get too excited about a big windfall. From the article: "Consumers, who pay about 40 percent of the taxes collected, typically pay about $18 a year in excise taxes if they have a long-distance service and a cellphone. They will be able to file for a refund on their 2006 federal income tax returns."

4 of 303 comments (clear)

  1. If it were private industry by Tweekster · · Score: 5, Interesting

    This would be a clear cut case of fraud. Since the tax was imposed for a specific reason and obviously has not been used for that in the last 100 years or so, someone should go after the Federal Govt for fraud. Now that would be interesting.

    It isnt that far fetched either, say your local community imposed an extra $20 on property taxes to be used for technology in schools and in reality it was used to buy a new Benz as a "govt vehicle" for the mayor, there would be significant problems.

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  2. It will stay on phone bills by pete6677 · · Score: 4, Interesting

    What do you bet the tax stays on your phone bill anyway? It is a well-known fact that phone companies attach all sorts of fees disguised as taxes, some of which actually go into their own pockets. So their costs will be lowered, but for phone customers its just another day.

  3. Re:Photo Op? by arivanov · · Score: 4, Interesting

    Neah... Forget it...

    After all his clone on this side of the pond did not bother getting on board of the HMS Illustrious to declare the end of the Great War with Germany finally over on the 24th November 2005.

    For the humour and history defficient out there:

    1. Britain introduced drinking establishment licensing laws to improve the quality of ammunition shipped to the German front in WWI and minimise the number of workers showing up to work incapacitated. Hurray for the war effort against the great enemy, hurray, hurray
    2. These laws stayed in force till 24th November 2005
    3. When the changes of the laws were discussed and introduced every single idiot neocon in the country was prophessing that the world will end on 24th November 2005 or soon thereafter. It is still there and still as boring as it was.

    And do not even get me started on income tax and napoleonic wars...

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  4. The Nature of Taxes by geoffrobinson · · Score: 5, Interesting

    The only reason this is getting appealed is because it was originally for the Spanish American War (Remember the Maine!). It was a humourous enough example to get someone in Congress to actually repeal this tax.

    Generally, taxes never die. So be very cautious about adding a new one.

    Pennsylvania still has the "Jonestown Flood Tax". A 18% excise tax on alcohol meant to raise funds for the flood that occured in 1889 or something like that.

    --
    Except for ending slavery, the Nazis, communism, & securing American independence, war has never solved anything.