Federal wireless excise tax to be eliminated
by Donald Melanson 
posted May 25th 2006 at 1:04PM
In what should be music to the wireless industry's ears, US Treasury Secretary John Snow announced today that the Bush administration plans to eliminate the 3-percent federal excise on long-distance wireless and wireline services. At a press briefing, Snow said: "The federal appeals courts have spoken across the board. It's time to 'disconnect' this tax and put it on the permanent 'do not call' list." Yes, he really did say that. Snow also expressed support for a Senate measure that would remove the 3-percent tax from local wireless and wireless service as well. Losing the tax will cost the Treasury some $13 billion in refunds during 2007 and 2008. Individuals will simply have to claim the refund on their 2006 tax return.
Reader Comments (Page 1 of 1)
Donald @ May 25th 2006 1:56PM
If you think the carriers will actually remove this charge from their bills, raise your hands.
Didn't think so.
Chris @ May 25th 2006 7:19PM
"The tax, incorporated in 1898 to fund the Spanish-American War, adds 3 percent to monthly bills of the 214 million cellular subscribers. The U.S. government has lost several FET challenges in federal appeals courts around the country in past months."
Little known fact: the Spanish-American War was actually fought over roaming charges.
Nick @ May 26th 2006 12:02PM
I work for Cingular and we have been provided with a lot of collateral to provide customers who question the excise tax, all of which points to web sites promoting dropping the tax. So my guess is that if we refer people to sites wanting it gone, if it's dropped, I wouldn't be shocked in the slightest if Cingular at least dropped it.