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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writes "Over 108 years after financing the Spanish American War, the tax on long-distance phone calls is finally being repealed.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 The tax is no longer in effect on 31 July, 2006."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."

12 of 303 comments (clear)

  1. Photo Op? by eldavojohn · · Score: 5, Funny

    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.
    1. 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...

      --
      Baker's Law: Misery no longer loves company. Nowadays it insists on it
      http://www.sigsegv.cx/
  2. If you have VoIP, double check your bill. by XorNand · · Score: 5, Informative

    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"
  3. 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.

    --
    The phrase "more better" is acceptable English. suck it grammar Nazis
  4. I have a better idea on how we can save money by MikeRT · · Score: 5, Insightful

    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.

  5. 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.

  6. Income Tax by mulhollandj · · Score: 5, Insightful

    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.

  7. there's no temproary tax or program by b17bmbr · · Score: 4, Insightful

    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.
  8. 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.
  9. Maybe they could tackle this tax next.... by i_want_you_to_throw_ · · Score: 4, Informative

    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!

  10. Re:Spanish-American War Over? by rlp · · Score: 4, Funny

    Not as far as I am concerned! To arms, my Brothers! Remember the Maine!

    Hell yes! I say we storm the Spanish beaches and drink all their wine and eat all their tapas. Oh yeah, and take lots of photos. And maybe visit a few art musuems and ...

    --
    [Insert pithy quote here]
  11. History of this tax by autophile · · Score: 5, Funny
    Havana, Cuba (a colony of Spain), February 15, 1898

    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.