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FOR IMMEDIATE RELEASE CONTACT: KIMBERLY NIELSEN
May 25, 2000 (202) 225-3415
 
REP. WALTER JONES HELPS REPEAL 
PHONE TAX FROM SPANISH-AMERICAN WAR 
Current Tax Hits Every American Family with Telephone, Internet Service
 
Washington, D.C. — Congressman Walter B. Jones (R-NC) today voted to help pass the Phone Tax Repeal Act, (H.R. 3916), which would eliminate a three-percent federal excise tax on telecommunications that affects every American household with telephone service.  

“This bill proves that once a tax is signed into law in Washington, D.C., its life span is virtually endless,” Jones said. “For more than 100 years, every family in this country with a telephone has been forced to pay this outdated tax.  I am proud to have cast my vote to give all consumers a break from this burdensome tax.”

Congress first enacted a telephone excise tax in 1898 to help pay for the Spanish-American War.  At that time, the tax amounted to one penny on all long-distance calls of more than 15 cents. While it was intended to be a temporary tax, efforts to phase it out over the years have proven unsuccessful.  In 1990, Congress succeeded in making it a permanent three-percent tax on all telecommunications services. 

 Rep. Jones is a co-sponsor of H.R. 3916. President Clinton has expressed hesitation about signing the legislation into law should it receive majority support in the Senate.

 
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