Congressman Michael G. Oxley Fourth Ohio District OXLEY BACKS TELEPHONE TAX REPEAL  FOR IMMEDIATE RELEASE
MAY 25, 2000
 
WASHINGTON -- This afternoon, U.S. Rep. Michael G. Oxley (R-Findlay) voted to repeal the federal tax on long-distance talking.  The Phone Tax Repeal Act, authored by Rep. Rob Portman of Ohio, passed by a vote of 420 to 2.  The bill repeals a federal telecommunications excise tax that was first imposed in 1898 to finance the Spanish-American War.
 
"They say that talk is cheap," Oxley said, "but that's not true when the federal government gets involved.  Today's House vote is a great step toward making talking more affordable for everyone."
 
If signed into law, the bill would completely repeal a federal tax paid by the 99.1 million American households that have telephone service.  Currently, the tax shows up on phone bills as a line-item labeled "FET" or "federal tax."
 
At its inception, the "temporary" tax cost one penny on long-distance phone calls costing more than 15 cents.  It was imposed because a telephone call was considered a luxury at the time.  Over the years, according to Rep. Portman, the tax has been increased, phased out, and phased in about 20 times, generally to help raise federal funds during war time.  In 1990, Congress made a 3 percent federal excise tax a permanent feature of Americans' telephone bills.
 
If passed by the Senate and signed into law, the tax repeal would remove another barrier to the growth of telecommunications services.  In addition to giving Americans a break on their phone bills, the bill will encourage growth in advanced technology sectors.
 
"It's time to put this tax on hold for good," Oxley said.
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