WASHINGTON -- A key House committee today approved legislation cosponsored by Rep. John T. Doolittle (R-Rocklin) to permanently repeal the excise tax on telephone services enacted to fund the Spanish-American War.

A vote by the full House of Representatives is expected next week.

Rep Doolittle commented, "I'm very pleased to see the telephone tax repeal cleared for action on the House floor next week. This tax has been around long enough. The time to repeal a 102 year-old 'temporary' tax is now."

Congress first enacted a telephone excise tax in order to help pay for the Spanish-American War in 1898. At the time, this "temporary" tax amounted to a penny on long-distance phone calls costing more than 15 cents. Over the years, the federal phone tax has survived efforts to phase it out and scale it back, and the Democrat Congress made it a permanent 3% tax on telecommunications services in 1990.

The legislation would provide tax relief to all that have telephone service - 94% of American households.

Doolittle added, "After the Spanish-American War tax is repealed, the 'Gore Tax' on communications services will remain. The 'Gore Tax' was enacted unilaterally by the Federal Communications Commission without the approval of Congress. I also support legislation to repeal this unconstitutional tax."

Congress has been pursuing an aggressive tax relief strategy this year. In February the House passed legislation to address the marriage tax penalty. The Social Security earnings penalty that reduced benefits for working seniors has already been repealed. Last week, the House extended the moratorium on discriminatory internet taxes.