Cellphone "federal excise tax" dates back to the Spanish-American War

With all this fussin' and fightin' over the billions of dollars spent for the war in Iraq, it's surprising that there's not more of an uproar over a tax that we still pay to support a war that ended over a hundred years ago. The Ohio News Network out of Columbus is reporting that the 3% "federal excise tax" that we pay each month on our cellphone bills originated as a luxury tax on phones to fund the 1898 Spanish-American War. While none of us were around then to confirm this, we're pretty sure that there were very few cellphones being produced around the turn of the century, so the income they'd generate from a usage tax would seen to be negligible. No one is quite sure where this tax money goes today, which is why both carriers and some lawmakers support a repeal of the antiquated tithing, although another option being toyed with is to reroute the funds towards another war machine and show Spain that we can really hold a grudge.

[Via textually]

[Pete @ Jan 17th 2006 4:25PM]

Thanks for clarifying this, Evan. It's BS that we have to put up with all these taxes. It's not like 33% of our gross income already goes to them. Is there any way to start a petition to end this tax?

[db @ Jan 17th 2006 4:35PM]

This is actually old information; it seems to come up every few years. That charge is still on your landline bills, too. But it's true that it started with the Spanish-American War and was supposed to be a "temporary tax". (That's why you should never support a "temporary tax" -- I have never seen a temporary tax that did not become permanent, one way or another.) And the public doesn't know where any of the money goes, but you can bet the government won't repeal it since that would mean less of our money for them to play with.

[GujuGuy67 @ Jan 17th 2006 4:37PM]

The good news is that there is a way to end this excise tax!

The solution? Call and write your Congressman! Also, encourage others you know to do the same.

[Scott @ Jan 17th 2006 4:39PM]

There are a number of people who don't pay this tax on principle. If you tell your phone company that you don't want to pay it, they will take it off your bill- the phone companies are pissed off that they have to collect it in the first place. There is a small chance that the IRS will come down on your ass for not paying it, or that you will end up on the no-fly list, or during Bush's third term, locked up in Gitmo as an "enemy combatant."

Denver Post story about the protestors:
http://www.denverpost.com/search/ci_3348908

[Montgomery @ Feb 9th 2007 1:00AM]

Your false accusation attributed to Bush only fools those who already know better but don't care. A tax perpetuated by liberal dogma, and last year repealed, by the then conservative majority only proves to the ever increasingly savvy public what a diseased position the left so torridly defends.

[Adam @ Jan 17th 2006 4:42PM]

It's true and it's not just on wireless... that 3% Federal tax is on all telecom - check your wireline bill.

[serious @ Jan 17th 2006 4:48PM]

Why, www.petitiononline.com of course!

Seriously, I'd love to see how the accountants "account" for this $, and more specifically exactly where it goes. My guess: execs.

[PEZ @ Jan 17th 2006 4:51PM]

If the cellcos and landline co's were upset about it, they would have done something about it long ago.

But with all of us pulling together as one nation, maybe we can overcome the big bad government! YAY!

Right.

[Eric @ Jan 17th 2006 4:55PM]

At first I was confused by this since there is no NewsChannel5 in Columbus, then I realized it was reported by Ohio News Network here, then posted at NewsChannel5. Anyway, I'd be very interested to know where all of this money is going.

[YourNameHere @ Jan 17th 2006 5:00PM]

The only war to ever turn a profit!

[John @ Jan 17th 2006 5:02PM]

Not that it matters. If the tax were repealed, carriers would probably continue to charge and pocket the 3%, and just change the name to some BS like "regulatory recovery fee".

[Craig @ Jan 17th 2006 5:04PM]

I'm still not sure what beef we had with Spanish-Americans. Now those Franco-Americans, what with their delicious pasta delicacies, they are welcome in my country any time.

[Director Mitch @ Jan 17th 2006 5:07PM]

Let's see - bitch, moan and petition for a few bucks out of my cellphone and telephone bills each month, or the 7-9% of income that California confiscates from my income? Or that they assess on my car? Or what they assess on my house? Or that is tacked on to nearly all my purchases?

There are plenty other taxes to bitch and moan about and very, very little of it goes to anything doing with any war - except the so-called one on "poverty".

[Kike (Yup, it's my real name) @ Jan 17th 2006 5:13PM]

Attack us if you dare! (From Spain)

(Just in case someone finds this offensive: It's just a JOOOKE, as the one in the article ('cos that is a joke, isn't it?)

[Whisky @ Jan 17th 2006 5:16PM]

There was something on the News about something like this. Senator Schumer (NY) is fighting to stop a cell phone tax for NY customers that is old and if its done, it would require the cell companies to ponie up about $50 per custumer.. seems great but what about for all the other years i had Verizon and Sprint and ATT and now I'm with Cingular.

I can't find the story online. I heard it last night.

[Whisky @ Jan 17th 2006 5:21PM]

found the story.. NY might get a refund...
http://www.ny1.com/ny1/content/index.jsp?stid=8&aid=56333

[Pinkerton @ Jan 17th 2006 5:24PM]

The House voted 420-2 to repeal this tax in the summer of 2000 (HR 3916). The Senate took this bill and added it to their bigger "Death Tax" bill, which President Clinton vetoed in the fall of 2000. The larger bill did not have enough support to gain the 2/3 majority in the house required to override the veto.

http://thomas.loc.gov/cgi-bin/bdquery/z?d106:h.r.03916:
http://thomas.loc.gov/cgi-bin/bdquery/z?d106:HR00008:

This bill keeps getting thrown about in one form or another with most politicians paying it lip service. The inefficient process of our Congress keeps it from passage.

[Nachete @ Jan 17th 2006 6:54PM]

Grudge? What grudge? You kicked our spanish ass in that war.

[DaGringo @ Jan 17th 2006 6:58PM]

Holy Crap!!! Don't say that twice cause these nuts in Washington might take you seriously!!! Plus I just read that even though Spain lost the war, 4 American soldiers were creamed for every 1 Spanish soldier, so I'd rather just pay the damn tax!!!!

[Mr. Pottersquash @ Jan 17th 2006 9:05PM]

So thats how we fun all our secret CIA-type things. Dont repeal it, foolish to repeal a tax everyone is gladly paying. Keep it, just give us an accounting of the money.

[Mr. Phillips @ Jan 17th 2006 11:46PM]

What do you think Income Tax comes from. World War II War Bond. After Woodraw Wilsons signing of the Federal Reserves enactment (wasn't ratified properly) in 1913. They where trying to push "Income Tax". Everyone knew back then it was a farce hardly anyone paid. It was only during World War II (War Bond)that they snuck it in again after the conflict continuing as Income Tax. Therefore we are still at a state of war.

[Mat @ Jan 18th 2006 10:45AM]

I for one say we put those taxes to a war with Portugal. They've been lookin' at us sideways for way too long!


(I for one would be willing to pay all these taxes if we just had more cool social programs like Canada, Norway, and/or Germany)

[Mastershake @ Jan 18th 2006 12:18PM]

There is an Excise Tax in MA. as well. "to help defer the cost of road maintanence during this time of war" (WWII)! I found this out when I moved back home from serving in the Army, when I was served with a warrant for not paying my excise Tax for 3 years. Every year you get taxed based on the value of your car. So the nicer the car the more you pay. This of course seems to contradict things like emmissions control, and yearly vehichle inspections that they have in Ma. which actually protect thier roads! Even though I feel we should encourage another German occupation of France, i don't really like france...I do believe that WWII is over. I now live in Las Vegas where people are free to put all kinds of junk on the road unfortunately, but it doesn't rerquire a tax, and I can drink anytime anywhere with my concealed weapon! which I plan to "E" out this summer with an electronic trigger, auto cocking, and maybe an mp3, I mean why not? but seriously I would like to put a camera under the barrel that would capture mpegs for like 30sec after every shot that would be a cool way to incriminate myself.

[Timothy @ Jan 18th 2006 12:46PM]

Tithe means tenth, not just a synonym for offering or tax.

[miss joys @ Jan 26th 2006 6:03PM]

I am a comment spammer: [e-mail]

[MISS JOYS @ Jan 27th 2006 7:09AM]

I am a comment spammer: [e-mail]

[Michael @ Jun 23rd 2006 4:36PM]

I say we apply this tax toward free basic health care for all U.S. Citizens and... bullet trains in the U.S.

[Isabel @ Jul 26th 2006 10:17AM]

Even though this tax is going away I wouldn't be surprised to see another tax of equal or greater value take its place to try to bandage the deficit the Iraq occupation has incurred.

[Former Republican @ Sep 1st 2006 5:29PM]

That's peanuts. If you think that's bad, just wait what the Bush tax will look like to cover the Iraqi quagmire.

[Montgomery @ Feb 9th 2007 1:15AM]

The personal decision to forsake truth for a lie for the advancement of one's ideals exposes the glaring absence of fact based substance. This can only be viewed as the moral lower ground.

[Montgomery @ Feb 9th 2007 1:24AM]

You mean the quagmire caused by the emboldening of our enemies as a result of one sided reporting in the mass media which is geared towards the indoctrination of the masses?
By the way,...How much did WWII cost in comparison. Oh,... and yeah,...freedom from tyranny, terrorism, and oppression isn't ever free.

[billy bob thorton @ Aug 4th 2007 2:10AM]

Montgomery, set the thesaurus down, have some tea, and turn off Fox news for a few minutes to let your head clear.

[billy bob thorton @ Aug 4th 2007 2:13AM]

No we should use it and build a monorail, and maybe an escalator to nowhere if there's money left over.