WASHINGTON-Everyone who makes a phone call-either wireless or wireline-soon could see a tax cut if Rep. Billy Tauzin (R-La.) has his way.
Last week, Tauzin, chairman of the House telecom subcommittee, re-introduced a bill to eliminate two-thirds of the 3-percent excise tax on all telephone calls. The remaining 1 percent would be eliminated in five years after schools, libraries and rural health centers have been wired for the Information Superhighway.
The 3-percent excise tax originally was levied at the beginning of the century as a luxury tax, but has remained even as phones have become commonplace necessities.
Tauzin’s effort last year was too little too late, said co-sponsor Rep. Jerry Weller (R-Ill.). Weller is a member of the House Ways and Means Committee which must approve any tax plan.
Both Tauzin and Weller told reporters last week they are working with the House Republican leadership to gain support of their bill. “We are a free speech society. We shouldn’t pay a tax to [talk on the telephone.] We pay more taxes on state, local and federal [levels] for talking on the telephone than we do on tobacco,” Tauzin said.
Sen. Conrad Burns (R-Mont.), chairman of the Senate communications subcommittee, introduced the companion legislation in the Senate.
