Taxes and Debt
In 1898 the U.S. decided that Cuba should be a free nation. Luckily, Cuba felt the same way. On April 25, Congress declared war on Spain to free the Cubans. Soon after a luxury tax on telephone use was enacted to pay for the war. Apparently we are still paying.
Yes, the IRS and US government failed to repeal the tax once the war was paid for. It has raked in over 300 billion dollars over the last hundred years. 50 times the amount needed to fight the 6 month war. Our stout defenders, Verizon and AT&T, have just recently won a court battle with the IRS to remove the 3% tax.
The question is, will our bills go down or will the ILEC's profits go up?
Yes, the IRS and US government failed to repeal the tax once the war was paid for. It has raked in over 300 billion dollars over the last hundred years. 50 times the amount needed to fight the 6 month war. Our stout defenders, Verizon and AT&T, have just recently won a court battle with the IRS to remove the 3% tax.
The question is, will our bills go down or will the ILEC's profits go up?
posted by mattjustmull | 5:57 PM | permalink
4 Comments:
Option 2!!! Am I right?
Money talks and bullshit walks!!!!
Profits go up, gotta make the stockholder's happy!!!!
The Federal Excise tax is listed on your "taxes" section of your phone bill. So unless this comes with an increase in the actual phone bill (which would have to be announced in most states by 25 days) then your phone bill will indeed go down next month.
It's a complete PR move by the phone companies. They can now say they got your bill reduced by 3%, which they did.
Long distance calls are mostly free these days. Does that mean that Verizon is paying this tax separate from your bill? If they are, then your bill won't change.
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