[News Release - Congressman John E. Peterson - Pennsylvania's Fifth District - 1020 Longworth House Office Building - Washington, D.C. - 202-225-5121]
FOR IMMEDIATE RELEASE
October 30, 2000
CONTACT: Jen Bennett
202/225-5121 
 
CONGRESSMAN PETERSON URGES CLINTON-GORE TO SUPPORT BILL TO REPEAL TELEPHONE TAX
Outdated Telephone Tax Imposed to Fund Spanish-American War of 1898 
 
Washington—Congressman John Peterson today urged the Clinton-Gore Administration to sign a bill that would rescind the 3% federal excise tax on telecommunications, originally established in 1898 to fund the Spanish-American war.  "This is an outdated, unnecessary tax that has been on the books for 102 years. It proves again that once a tax is imposed in Washington, it is nearly impossible to get rid of it," Peterson said.

Last September, the House passed a bill that would repeal the phone tax as well as fund the legislative branch, Treasury Department, Postal Service and other general government operations.  The bill repeals a federal telecommunications excise tax that was originally enacted in 1898 as a "temporary luxury tax" to finance the Spanish-American War. 

The federal phone tax is regressive, having more of an affect on lower-income Americans and people, such as senior citizens, on a fixed income.

Repeal of the telephone tax would also be of benefit to Internet customers by making access more affordable.

"I would urge the Clinton-Gore administration to take this opportunity to provide relief to American telephone and Internet customers by signing this bill into law."
 
 

 
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