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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writes "Over 108 years after financing the Spanish American War, the tax on long-distance phone calls is finally being repealed.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 The tax is no longer in effect on 31 July, 2006."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."
Is the president going to play dress-up, get into an air force uniform, land on an air craft carrier near the Straight of Gibraltar and declare the Spanish American War finally over?
My work here is dung.
The Federal Excise Tax is typically the only tax that US-based VoIP carriers charge their subscribers (if they charge any). Having help start a VoIP company myself, I never understood why other providers charged this tax. We were advised by council that VoIP is not classfied as a "telecommunications service" but rather an "information service" by the FCC, hence was not subject to the tax. Therefore we've never collected a dime in taxes (other than sales tax on equipment sales, of course). I wouldn't expect Vonage to be pocketing that extra 3%, but I wouldn't put it past some of the other companies out there.
FYI: The "Regulatory Recovery Fee" isn't a tax, it's a surcharge that carriers levy to offset the cost of having to comply with federal regulations. However, IMHO, it's a bit disingenuous for VoIP companies to charge this fee since they aren't actually regulated.
Entrepreneur : (noun), French for "unemployed"
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.
The phrase "more better" is acceptable English. suck it grammar Nazis
I don't want a refund. I want my money to go toward funding the FBI teams that are going after Rep. Jefferson. I want them expanded by several hundred agents and to have what happened to Jefferson to happen to the entire Congress. You want to save money? Bush the sons of bitches who spend nearly $2B on bridges to nowhere, $1B on repairing and then moving a perfectly good railroad and all of that other pork barrel crap. Sorry, they can keep my $18/year in exchange for the FBI continuing to go after these scumbags. I'd consider that some of the best $18 I've ever spent.
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.
Are they ever going to repeal income tax which was only supposed to be 2% max? Many of us pay over 50% in taxes if you include gas tax, sales tax, income tax, property tax, etc etc.
for those of here in California, you might remember the sales tax history. it was capped at 6% forever, then when the earthquake hit northern california in 1989, they allowed a "temporary" sales tax increase to help pay for it. Well, it's going on 17 years now and Los Angeles is 8.25% and isn't going down anytime soon. The same is true of spending. It only gets larger and grows, which is the source of our current economic problems and even longer term nightmare. I understand alot of the political sympathies around here, many at odds with mine (mostly foriegn policy related) but at least there'd be enough sentiment for small governemnt. big brother is big brother, whether he's listening to your phone calls OR taking half your paycheck.
My problem? I was perfectly gruntled, until some numbnuts came by and dissed me.
It's over? Does Bush know about this?
-- www.globaltics.net
Political discussion for a new world
This is all about VOIP. And how VOIP doesn't pay these taxes. Traditional services complete with VOIP.
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.
If they already have our phone records, couldn't they just analyze them to see who is elgible for the refund?
The man who trades freedom for security does not deserve nor will he ever receive either. - Benjamin Franklin
The myriad of taxes on airline tickets. Ever since 1980 the feds have put a 10% tax on all airline tickets and the fund is doing nothing except offsetting the deficit. If you think about it, that's a ton of money. Airports got fed up and start charging PFC (passenger facility charges) which you see on yout ticket ranging from 3.00 - 6.00.
Ever pay attention to the taxes on your tickets after you buy them? In some low cost fare markets it increases the cost by almost 100%.
Then there's the "fuel surcharges" that airlines charge that never get refunded or repealed.
At least regarding long distance I have a choice NOT to use a meatspace carrier like Verizon. Give me help with air travel! Yikes!
You Americans have it easy. We Brits are still paying income tax, which was originally raised to pay for the Napoleonnic wars !
No but, yeah but, no but...
I wanna be a sandwhich too!
nothing
>Bowing to changes in technology and pressure from taxpayers and phone companies
The deeper significance here is that taxpayers don't mean squat but phone companies can get things done.
I'm not surprised, I always knew dollars were stronger than votes. I just hate having my nose rubbed in it.
Steve
A work that expires before its copyright never enters the public domain and thus enjoys eternal copyright protection.
Now that the US defense is no longer funded, the time for a new Spanish conquest has arrived.
As copyright owner of this comment, I authorize everyone to defeat any technological measure which limits access to it.
Vonage chared that 3% fee even when my first month of service was free.
I tried to explain that $0 * 3% = 0. They didn't seem to understand.
The big crime, the excise tax on local phone service that applies to every land line, is still there. I haven't used a land line to make long distance calls in years. But I still have a land line. Wake me up when I can save money by not paying the tax on it.
The good news is you'll get your $18 back since we don't need to fund the Spanish-American War anymore.
The bad news is they're going to add a tax of $5000/year to your phone bill to fund the wars in Iraq, Afghanistan, and possibly Iran.
The libertarian solution to the failures of capitalism is to apply more capitalism til the failures are fixed.
Hey, don't complain, it's one less tax.
:)
Now up here in Canada if we could get rid of this "temporary wartime tax" from WWII that we call "Income Tax"...
--- I used to moderate, then I read the -1 articles and decided having to filter through them was not worth it.
Does this mean the Spanish-American war is finally over? Did we win?
We all acknowledge that there is some waste in government....until it comes to the programs you like! Taxes do good things--they generally build roads to somewhere...they pay for schools...they pay for police, fire, and other stuff. In business, you get what you pay for. In business, waste takes on forms like Ken Lay or Jeff Skilling....and other overpaid CEOs. (and, oh yes--it was GOVERNMENT, in the form of prosecutors, not stockholders, who held them accountable.!) Guess what--the principle works the same in government. You get what you pay for. You don't like it--then get involved in the process and change it. This phone tax is a red herring....a right-wing fakeout to avoid the fallout over huge tax cuts to the rich which vastly overshadow the cost of this little sop to the masses. I say keep my $18. Give me good roads, and good schools. Hunt down the criminals. Feed kids who go to bed hungry. And yes--make those who benefit the most in our society bear the burden for taking care of the least among us.
Great.
When the tax is instituted, you have to pay it or men with guns come to your home.
When the tax is repealed, you have to fill out a form to get your money back. That's fair.
Why not just repeal the whole damn thing and replace it with something that makes more sense?
Support the FairTax
[a soft, scraping noise is heard as the soapbox is pushed closer to the keyboard]
Am I the only American who has noticed that our governments, the Federal one in particular, have spiraled way out of control (I doubt it)? The Fed has usurped so many powers originally intended for the States that it only vaguely resembles what was laid out by our founders. It was never intended for our Senators and Representives to be full-time, sometimes lifelong (albeit by election) positions. Nowhere is an exclusivley two-party system endorsed by our foundational documents (the Constitution, etcetera). State militias were devised in order to keep our Federal government in check, not as an auxillary force in time of need. And above all, our government was never supposed to be a for-profit concern.
We the American public need a revolution! No, I'm not talking an armed conflict. I'm talking about an educated public demanding that their government serve them, not vice versa. We need to demand term limits for Congresspersons and Federal Justices. We need to limit Federal speding via a reduction of cash flow. We can do this via a reduction in Federal taxes. Why does the government need so much money? They have fallen into the trap of thinking that the Government needs to be the baby-sitter of the American public. Providing for the common defense and general welfare of the public does not include paying farmers NOT to farm or subsidizing sheep/wool farmers. Specific cases such as these are best handled by those that are closest to the problems: the States.
The States need to take back their rightful powers. By severely reducing Federal income taxes and expenditures, States will have the ability to fairly tax their residents and handle their own internal problems and promote ideas and programs specifically tailored to their citizens' needs.
We need to mobilize and educate. We need to make demands of our government and not take "No" for an answer. They are supposed to be serving us. We need to make them honor that trust. And above all, we need to vote! Even if that means standing in the rain for hours in line. We need to write and phone our elected officials on a regular basis to let them know our concerns and find out how they are representing us. It is only through action that we will win back control of our government and set things on the right path again.
[pushes soapbox back under desk]
USS Maine: Blam! Glug, glug, glug.
America: WTF? Spain, can't you control your own damn harbor?!
Spain: STFU
Tomas Estrada Palma (head of Cuban Revolutionary Junta): Spain, I've got $150 million for you if you'll let us have independence.
Spain: STFU
American Democrats and Big Media: Free Cuba! Woohoo! Spain sux0rz!
Prez. McKinley and Republicans: WTF, we don't need dat shit.
Americans: Remember the Maine? Let's go kick some ass!
(April 11, 1898)
McKinley: Fine. Spain, GTFO of Cuba.
Spain: STFU
(April 25, 1898)
McKinley: No, YOU STFU! We declare war! As of... uh... 5 days ago!
Congress: Let's tax... inheritance! That oughta make us some bling-bling. Oh, and let's add one penny to the telephone bill. Only rich people have telephones, they can afford it.
(June 10, 1898)
US Marines: Ha ha, we ownz0r Guantanamo Bay! Freedom from torture for all!
(August 12, 1898)
Spain: Dios Mio! All our fleet are belong to you!
America: Yay, we win! Give us all your wine. And tapas.
Time Machine: Wowowowowow
(1982)
Congress: Let's set that war tax to 3% of the phone bill, that oughta keeps us in da bling-bling. But only until 1985.
(1984)
Congress: F Dat, we want to keep our bling-bling. At least until 1987.
(1987)
Congress: Mane, what were we thinking? Keep da bling-bling until... 1990?
(1990)
Congress: Too fun! Let's make it... permanent! Par-tee! Par-tee! Par-tee!
(2000)
Congress: That was stupid. Let's repeal the war tax.
Clinton: Ah agree. But there's nothing in this big ol' Bill (heh heh) about that edumication spendin' ah wanted. Y'see, it all depends on what the meaning o' the word "Spanish-American War Tax" is. Ah veto this Bill (heh heh, I cain't never get enough o' that joke, now come set on daddy's lap).
(2005)
Internet: Congress, you are too stupid!
Congress: Well, I guess we can try again.
Towards the Singularity.