 TheWickerMan
join:2002-04-09 Enola, PA
| said by GOLFnSUN :Don't want to be taxed for everything, then write your congressperson and complain about all the nickel and dime taxes the government passed and never revoked. Yeah, I'm sure they'll get right on that, just as soon as they get a break from all the hard work they put in raising taxes and their own pay. |
 mykey2k
join:2001-11-19 Aurora, IL
| reply to GOLFnSUN I did write my Senators. I'll include their responses here because it shows their stances...
said by IL Senator Durbin :
Thank you for contacting me about repealing the federal telephone excise tax. I appreciate hearing from you.
The telephone tax, which was originally imposed to cover short-term revenue needs, first appeared as a temporary tax to finance the Spanish-American war. Telephone taxes have been continuously collected since the Great Depression. The tax is assessed at a rate of three percent on local and long-distance telephone services.
I have voted to repeal the telephone tax. However, such legislation has not been passed by the full Senate. A repeal of this tax will ultimately reduce the telephone bills of Illinoisans and reduce the cost of access to the Internet. I will be sure to keep your views on this matter in mind in case Congress debates changes to the tax code this year.
Thank you once again for contacting me. Please feel free to stay in touch.
Sincerely,
Richard J. Durbin United States Senator
said by IL Senator Obama :
Thank you for contacting me regarding the excise tax on long-distance telephone service. You raise some important concerns, and I am glad you wrote.
This tax, first imposed in 1898 because of the revenue needs of a military conflict, is levied at a 3 percent rate and is a permanent part of our revenue structure. For years the tax was set at 10 percent, but the Excise Tax Reduction Act of 1965 reduce the tax to 3 percent, and provided for its eventual elimination. However, the revenue requirements of the Vietnam War prompted Congress to extend the tax. It has remained between 2 percent and 10 percent since that time.
There has been renewed interest in the telephone excise tax during the current 109th Congress. New marketing practices and technologies have blurred the line between which telecommunications activities are taxable and which are not. For instance, in the case of VOIP (voice over internet protocol) voice transmissions are sent in the form of packets of information and are indistinguishable from text messages or e-mails which are tax-exempt. Further, companies now offer "bundles" of service which can include communication services which are subject to the excise tax and other services (such as cable television, high speed internet access, and text messaging) not subject to tax. These factors have caused consumers and businesses to scrutinize the telephone service excise tax, and have led to calls to repeal the tax.
Revenue from this excise tax goes directly into our government???s General Revenues, which is used to fund an expansive range of federal services. The case that continued imposition of the excise tax on long-distance telephone service can no longer be justified is strong. However, with the cost of the ongoing conflict in Iraq and predictions that the Federal price tag of Hurricane Katrina could be as much as $200 billion, it may, as a practical matter, be difficult to eliminate current sources of revenue at this time.
I am not on the Senate Finance Committee which is considering this issue. However, your views deserve a place in this debate, and I will keep them in mind as the discussions on this matter continue. If strategies arise that allow the government to reduce or eliminate the telephone service excise tax without sacrificing services to those who need them most, I will certainly keep your letter in mind.
Again, thank you for contacting me. I appreciate your comments, and I hope you will share your views with me again in the future.
Sincerely,
Barack Obama United States Senator
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