Rep. Ron Paul (R-Lake Jackson) is co-sponsoring the Telephone Excise Tax Repeal Act of 2009, a bill that would do away with a tax that was originally enacted to help fund the Spanish-American War of 1898.
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The 110-year-old tax was initially enacted as a “temporary” tax to provide military funding during a time when a telephone was considered a luxury item.
Paul said the legislation was outdated and repealing the tax would help people keep more money in their pockets at a time when they sorely need the extra cash.
“In these tough economic times, every little bit of tax relief helps. I am proud to fight in Washington for every tax cut possible for my constituents, and I am hopeful that the Telephone Excise Tax Repeal Act will gain support and pass quickly,” Paul said.
Paul added that for more than 40 years, the federal excise tax has been withering away. Most recently, after losing several court cases, the Internal Revenue Service stopped collecting the tax on long distance and most bundled telephone services in 2006.
As a result, the tax now disproportionately burdens those who depend greatly on local telephone service, primarily people who live in rural and low-income communities and those who subscribe to lifeline telephone services.
Simonton-area resident Flo Richards has one of the lifeline services. She said she never really paid attention to the tax but would be glad to see it removed.
“In these times, very little bit helps,” she said.
Richards, 77, laughed when she learned the tax was originally intended to fund the Spanish-American War.
“That was so long ago, my great-grandfather fought in that war. That just shows you can’t trust the government when they tell you a tax is temporary,” she said. “How can something be ‘temporary’ for over 100 years?”
Paul’s congressional district covers portions of Fort Bend County, including much of Cinco Ranch.
