HERGER VOTES TO END 102-YEAR OLD TAX
Obsolete tax enacted in 1898 to fund the Spanish-American War


May 23, 2000

Dear Editor:

Most Northern Californians find the notion of a "tax on talking" to be another example of big government at its worst. Every year, Americans pay more than $5 billion to Uncle Sam as a result of the 3% telephone excise tax, commonly marked as "FET" or "Federal Tax" on phone bills. First enacted in 1898 to fund the Spanish-American War, this "temporary" tax is still impacting Americans 102 years later.

Thankfully, the days of this outdated and unnecessary tax are numbered. On May 25, the House of Representatives is scheduled to vote on the telephone tax repeal. I plan to support this legislation. 

The telephone tax is bad tax policy for several reasons. First, this tax hits low-income families the hardest, and also hurts small businesses barely breaking even.

It is a tax which has lost its purpose, and is simply an excuse for Washington to grab more hard-earned taxpayer dollars.

Finally, the telephone tax discourages efforts to remove barriers to the Internet and lower the cost of telecommunications. Repeal of this tax will provide relief for the 94 percent of American households with phone service, whether they use their lines for phone, fax, or Internet access.

Northern Californians pay enough taxes already - they shouldn't be forced to fund a war that ended 102 years ago.

Sincerely,

Wally Herger
Member of Congress


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