For Immediate Publication  Contact: Magaly Rivas
May 17, 2000 (202) 225-6235

BECERRA BACKS ELIMINATION OF FEDERAL TELEPHONE TAX
House Ways and Means Committee Takes Action on Measure

Washington, D.C. ---- Rep. Xavier Becerra (D-CA) voted today in favor of the elimination of the Federal Excise Tax on Communications during a House Ways and Means Committee markup. An original cosponsor of HR 3916 "The Phone Tax Repeal Act," Becerra has been a strong advocate for this measure since its introduction.

"Every time a child calls his mother, or a senior citizen reaches out to family members, they are paying a tax on that call," expressed Becerra. "By eliminating this tax we are not only providing direct and immediate relief to over 94% of America's households, we are also giving relief to those who need it most -- low-income families."

The Federal Excise Tax on Communications or "talking tax" is a 103 year-old provision which disproportionately penalizes low-income Americans. It was originally passed in 1898 as a luxury tax to help fund the Spanish-American War.

"The telephone is a necessity of life and the tax has become a financial burden on every American household with phone service," concluded Becerra.

HR 3916 "The Phone Tax Repeal Act" now goes on to the full House of Representatives for consideration.

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