May 10, 2005
Senators Warner and Allen and Representative Moran
Senators Warner and Allen and Representative Moran
PO Box 8208
Alexandria, VA 22306-8208
May 10, 2005
The Honorable John William Warner
United States Senate
225 Russell Senate Office Building
Washington, DC 20510-4601
The Honorable George F. Allen
United States Senate
204 Russell Senate Office Building
Washington, DC 20510-4604
The Honorable James P. Moran
U.S House of Representatives
2239 Rayburn House Office Building
Washington, DC 20515-4608
Dear Senators Warner and Allen and Representative Moran:
As you know, in 1898, the federal government placed a tax on telephones for the purpose of funding the Spanish-American War. While the war only lasted four months, the tax is still in place. I urge you to support and cosponsor legislation to repeal the 3% federal excise tax on telephones.
Since only the wealthiest Americans had phones in 1898, the tax was billed as a luxury tax. In 2005, there are more telephones in America than people, and the tax is now highly regressive, as it amounts to a greater share of the income of low-income Americans, minorities and senior citizens.
The tax also funds no specific purpose, but instead goes into the general fund. Meanwhile, the tax has strangled the telecommunications industry for a century, stifling innovation and keeping prices high.
It is past time to repeal this regressive, antiquated and unpopular tax. I strongly urge you to support and cosponsor legislation to repeal the Spanish-American War tax!
Sincerely,
James Landrith
May 20, 2005
Mr. James Landrith
PO BOX 8208
Alexandria, Virginia 22306-8208
Dear Mr. Landrith:
Thank you for contacting me concerning the federal excise tax on telephone service. I appreciate your position on this issue and benefit from having your input.
The federal excise tax on telephone service originated on long distance service back in 1898 as a new revenue stream to help pay for the Spanish American War. Following the conclusion of this war, the tax was repealed. Over the course of the 20th century, the tax on telephone service was reinstituted and repealed during times of war and economic need. It wasn’t until the Revenue Reconciliation Act of 1990 (Public Law 101-508) that the federal tax was permanently extended.
As you know, the debate on the merits of this tax continues. While I understand the desire to lower taxes on phone bills, many of which can be expensive, I believe that a repeal of this tax could have an adverse effect on governmental receipts. Revenues collected from this help to pay for essential services such as protecting our environment, supporting health care needs, and providing for our national defense.
While I have supported efforts in past sessions to eliminate this tax, there is no current legislation addressing this issue in the 109th Congress. Rest assured that should the matter come to the floor of the House of Representatives, I will keep your thoughts in mind.
Please feel free to visit my website at http://www.moran.house.goy that contains information on other topics of interest or to sign up for the Moran E-Digest to receive periodic email updates and issue alerts. Thank you again for contacting me.
Yours truly,
James P. Moran
JPM/hb