2003-04-25

bigdamnnerd: (chao)
And people wonder why I don't trust the government. A tax placed on phone lines to pay for the Spanish American war (1898 for those that slept through US History classes). Is *still* around, and was made permanent in 1990.

From: http://www.itaa.org/taxfinance/fedexctx.htm

What is the history of the tax?
In 1898, Congress passed a 3% excise tax on telephone calls to raise the funding necessary to fight the Spanish-American War. At the time the tax was imposed, only 2,000 phone lines were operational in America. Today, 94% of American households have telephone service.

This tax, now commonly referred to as the Spanish-American War tax, was made permanent in 1990, after 31 years of "phase outs" and was set at 3%.

May 2013

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