Friday, May 26, 2000
Phone tax to finally die
House OKs phasing out 1898 levy
By Derrick DePledge
Enquirer Washington Bureau
WASHINGTON — In an election-year move, the House on Thursday voted overwhelmingly to end a 3 percent federal excise tax on the telephone.
The tax originated in 1898 to help pay for the Spanish- American War and has survived on and off as a reliable source of revenue for the federal government. It has been repealed three times in the past 102 years, according to the Joint Committee on Taxation.
“It's a classic example of a tax in Washington that just won't die,” said Rep. Rob Portman, R-Ohio, who worked for the repeal with Rep. Robert Matsui, D-Calif.
The tax — about $3.21 on a sample Cincinnati Bell phone bill — is tied to local, long-distance and monthly service charges. It collects about $5.5 billion a year for the U.S. Treasury.
House lawmakers, in a 420-2 vote, chose to ease the tax over three years, dropping it to 2 percent later this year, 1 percent next year and eliminating it by 2002. Sen. William Roth, R-Del., chairman of the Senate Finance Committee, has proposed repeal legislation in the Senate.
Cincinnati Bell and other phone companies support the repeal. Consumer and business groups complain the tax is one of several unnecessary charges on phone bills.
“This legislation will make telephone bills cheaper and easier to understand,” said Rep. Baron Hill, D-Ind., who has asked the Federal Communications Commission to control minimum long-distance fees and other expenses added by phone companies.
The House rejected an attempt to dedicate the phone tax to closing the so-called “digital divide” between wealthy and low-income Americans. Several Democrats also tried to add an unrelated campaign-finance reform provision to the bill but failed.
Other Democrats contend the money would be better used to draw down the national debt or help pay for a prescription drug benefit in Medicare.
Study: Festivals worth millions
Termites ready to stop swarming, start eating
Americana to reopen under new owner
Park buyer no stranger in Butler
Port authority asked for Banks
Sentinels: Don't let chief's slur slide
'Son of Beast' cleared to reopen
Ambulance firm owes $861K, Ohio says
Basilica altar will be moved
Miss America helps veteran, family go home
Bank robberies up this year
Clerk wings would-be bandit
Deal lets Bengals manage stadium
Hillary Clinton comes back to Cincinnati for more money
List of Memorial Day observances
Butler County
Clermont County
Hamilton County
Northern Kentucky
Warren County
ADHD.com pays attention to parents
GET TO IT
Grandmother tries heal old hatreds
Brichto's projects build understanding
Leis defends views on Mapplethorpe
Pig Parade: Marbleized (Pig)ment
Retiree spreads his success to others
Search ends for CCM dean
Send us your cyber-speak
5 named to board of MRDD
Carjackings begin with holdup at ATM
Central State reduces student loan defaults
Crisis Card offers hope in palm of hand
Four honored for civic service
Ky. tobacco farmers get $140 million
Newport wary of gambling plan
Officer sues two Ludlow councilmen
Phone tax to finally die
Queen City's moments to shine reflected in book
Tristate Digest
Visit helps cheer ailing classmate
