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Federal Document Clearing House
Congressional Testimony
May 16, 2000, Tuesday
SECTION: CAPITOL HILL HEARING TESTIMONY
LENGTH: 1360 words
HEADLINE:
TESTIMONY May 16, 2000 JAMES MARTIN PRESIDENT THE 60 PLUS ASSOCIATION
HOUSE WAYS AND MEANS OVERSIGHT INTERNET TAXES
BODY:
May 16, 2000 Statement Of James Martin
President-The 60 Plus Association Before the Subcommittee on Oversight Ways and
Means Committee United States House of Representatives Good afternoon, Mr.
Chairman, Mr. Coyne, and distinguished Members of the Ways and Means
Subcommittee on Oversight. My name is Jim Martin. I am the President of the 60
Plus Association. The 60 Plus Association has more than 500,000
citizen-lobbyists working against taxes that affect seniors and
their families. Indeed, our slogan at 60 Plus is "tax fairness
for seniors" and this Congress, thus far, has been very "senior friendly," for
instance, in abolishing the earnings limit that was essentially a 33%
tax on seniors' benefits. Now this Congress is poised, I
believe, to once again provide tax relief for seniors as it
considers H.R. 3916, a truly bipartisan bill that does the right thing for those
living on fixed incomes by repealing the antiquated I 00 year old federal
excise tax on telephones. I am here today on
behalf of all seniors who support H.R. 3916 co- authored by Representatives Rob
Portman (R-OH) and Robert Matsui (D-CA). 60 Plus has written a letter endorsing
H.R. 3916 and urging support for H.R. 3916. When the tax was
imposed in 1898 to fund the Spanish American war, it was intended as a
"temporary" luxury tax on telephones. Today
the telephone is essential to so many seniors in so many ways.
Seniors rely on the telephone to provide essential emergency
services and for regular consultation with physicians. Just as important, the
telephone is the main source of contact with family members. As
the head of a senior citizens group, let me put this issue into historical
perspective. Having worked on or around Capitol Hill since 1962, 38 years, I've
seen a lot of taxes come, but not many go. The time for this
tax to go has surely come. Considered a "luxury" back in 1898
when few owned telephones, it is clearly regressive in that
those on lower and fixed incomes, such as senior citizens, pay a
disproportionately higher part of their available funds. Thus, it makes it more
expensive for seniors who may be calling their children, their grandchildren, or
perhaps even more importantly calling their pharmacy. The FETT is no longer a
tax on luxury items. In fact the FETT is a regressive
tax that hits older Americans who live on fixed incomes the
hardest. If the FETT were repealed today it would mean a $ 1.1 billion
tax cut for families headed by a person aged 65 or over. Mr.
Chairman, repealing the FETT would mean an $85.6 million dollar
tax cut for seniors in your State of New York. These savings
can be used to pay for medicine, food or other necessities that are a burden on
those with a fixed income. There are plenty of reasons to eliminate the FETT.
Let me just cite a few: If a family started in 1940 to save the direct amount of
tax they've been required to pay since then, they'd have
$25,000 in savings today. That is enough money to pay off a home mortgage for
many seniors or pay Medicare deductibles or for prescription drug coverage. If a
small "five and dime" with four business lines in 1940 started saving the direct
amount of telephone tax they've been forced to pay all these
years, the store would have $88,000 available in that fund. Perhaps it would be
helpful if I submitted for the record an outline of the history of the federal
excise tax on telephone services. (see
attached) It's "temporary" status over I 00 years ago reminds me of a story by
President Nixon upon taking office in 1969. He recalled that as a young Navy
Lieutenant after World War II there were "temporary" trailers and wooden offices
built down on the Washington mall grounds to process the paper work of departing
and arriving military personnel. Some 25 years later, these "temporary"
buildings had become permanent, providing an ugly eyesore for visitors to our
nation's capitol. Newly elected President Nixon had them razed, restoring the
beauty of the mall. So it's long past time to disconnect the "temporary" 102
year old telephone tax! We thank you for your support of H.R.
3916 and hope that you will report it favorably from the Committee and move
swiftly to pass this important legislation.
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May 23, 2000, Tuesday 
