September 06, 2007

Crapo Applauds Phone Tax Cut

IRS refunds long-distance excise taxes resulting in $60 refunds for many

Washington, DC â?? Taxpayers will no longer need to pay an outdated, century-old tax on long-distance phone service, thanks to an announcement by the U.S. Treasury Department that it will refund the collection of the 1898 telephone excise tax on long-distance service. Idaho Senator Mike Crapo praised the move as one of many Senators encouraging the Internal Revenue Service to stop collecting the tax. â??Refunding taxpayers the $60 on an outdated tax on long-distance is a good first step, but they shouldnâ??t still be paying this tax in the first place,â?? Crapo said. The action by the Internal Revenue Service on the long-distance tax means taxpayers can file paperwork to recover a return of the $30 to $60 dollars they have paid this year. The long-distance tax was established to help pay for the Spanish-American War and was intended as a luxury tax. Repealing the tax will save taxpayers and cost the government about $10 billion this year.# # #