Press
Consumers Win Huge Victory in
Repeal of Federal Excise Tax
108 Year-old “Tax on Talk” Stricken from the Books
WASHINGTON, D.C. – MyWireless.org® declared today’s repeal of the Federal Excise Tax a huge “win” for wireless consumers. After years of consumer outcry and legal challenges in courts across the country, the Treasury Department finally repealed the Federal Excise Tax.
“This breakthrough shows how united wireless voices can be powerful agents for change. MyWireless.org empowered wireless consumers to send more than 100,000 messages to federal policymakers asking for relief from the 3% Federal Excise Tax. It was a long battle, but tax relief is finally in sight for the more than 200 million wireless consumers who have been paying this outdated tax for years,” said Kimberly Kuo.
Imposed by President William McKinley in 1898 to help fund the Spanish-American War, the Federal Excise Tax was originally a luxury tax, at a time when only wealthy Americans had phones. The war lasted only four months, but the “Tax on Talk” remained for more than 107 years.
Until today’s decision by the Treasury Department, every person who made a phone call paid an extra 3% for this outdated tax. Unlike other excise taxes, the money raised through the Tax on Talk is not “earmarked” for a specific purpose—not even to improve service or support for the telecom services that were being singled out for the tax!
“The average wireless consumer pays more than 17% in local, state and federal taxes, fees and surcharges every month. Striking the outdated FET off consumers’ monthly bills will bring more equity to wireless taxes. We hope that state and local governments will take note and reduce the outrageous tax burden wireless consumers are forced to bear,” added Kuo.
Go to www.MyWireless.org and register to help lower state and local taxes in your area.