PRESS RELEASE

May 25, 2000

CONTACT: Yier Shi   202-225-5716                                               FOR IMMEDIATE RELEASE 

HOUSE ACTS TO REPEAL 102-YEAR-OLD TELEPHONE TAX

WASHINGTON, D.C.—Congressman Doug Ose (R-Sacramento) today voted in support of the Telephone Excise Tax Repeal Bill, which eliminates a three percent federal tax on telecommunication services for consumers.

"One thing about Washington is that once a tax is on the books, it’s hard to get rid of it. It’s time to hang up on the 102-year-old telephone tax once and for all," Ose said. "Just about every American has a phone, so this tax cut will go to everyone equally across the board. "

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 Congress made it a permanent three percent tax on telecommunications services from taxation.

"Now that we’ve won the Spanish-American War, it’s time to move on. Repealing this tax removes one more restrictive barrier surrounding communications service," Ose said. "This legislation will give all Americans a break on their phone bills and cut down the cost of families logging on to the Internet."

The bill, which Ose co-sponsored, passed the House by a 420-2 margin.

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