FOR IMMEDIATE RELEASE CONTACT: Doug McGinn May 19, 1999 (202) 225-3031 Ryan Blasts Administration and FCC Over Increased Phone Tax
WASHINGTON - First District Congressman Paul Ryan today blasted Vice President Al Gore and the Federal Communications Commission (FCC) over their decision to implement an increase in last year's concealed tax on all phone service in the United States. -- Calls "Gore Tax" Unconstitutional --
Dubbed the "Gore Tax" following his push to have it initiated, the concealed tax is hidden within the long distance phone service charges of every American. It was announced today that fees would increase an additional $10 billion over the next four years. The "Gore Tax" was initially implemented as a means to assist educational facilities in upgrading their communications capabilities, but is widely considered as unconstitutional. Congress has the sole power to levy federal taxes.
"This issue is not about whether schools and libraries should be wired to the Internet," said Ryan. "This issue is about the Constitution and the Clinton Administration's attempt to impose an illegal tax on our citizens. Congress alone has the power to tax."
"Allowing, in fact, encouraging, a regulatory agency to impose a tax on the American people is nothing but a flagrant attempt to do an end-run around Congress. More alarming, the American people did not even have say through their representatives about this additional tax that they now have to pay."
"I am all for wiring our schools with better telecommunications systems, but I cannot support allowing regulatory agencies or the Vice President to simply impose taxes on the American people at their leisure. This is an illegal tax and it should be called just that."
Ryan is a cosponsor of the E-Rate Termination Act, legislation that terminates the FCC's ability to implement this program.
The Telecommunications Act of 1996 originally set discounted telecommunications rates for schools and libraries around the country. Instead of fixing special service rates for these institutions, the FCC, with Vice President Gore's vocal support, secretly levied a tax on telecommunications firms and phone companies who must recoup the cost by passing the charge along to unsuspecting customers. It was announced yesterday that these fees will rise an additional $10 billion over the next four years.
For additional information, or to speak with Congressman Ryan about the "Gore Tax," please contact Doug McGinn at (202) 225-3031.