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PRESS RELEASE FROM AMERICANS FOR TAX REFORM
Contact: John Kartch ( jkartch@atr.org or 202-785-0266)

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6/28/05

Rep. Henry Bonilla (R-TX) Becomes 100 th Cosponsor of Spanish-American War Tax Repeal
Legislation would end 107 years of “temporary” tax on talking

 WASHINGTON – Rep. Henry Bonilla (R-TX) today become the 100 th cosponsor of H.R. 1898, which would repeal the 3% federal excise tax on telecommunications, a 107-year-old “temporary” tax enacted to fund the Spanish-American War.

While the Spanish-American War tax was originally billed as a luxury tax in 1898, when only the wealthiest Americans had phones, the telephone is now a ubiquitous part of American life. The tax is therefore highly regressive, as it represents a greater share of the income of low-income and minority households.

In 2000, the House of Representatives passed legislation repealing the Spanish-American War tax by a vote of 420-2, and both houses of Congress passed appropriations legislation including the repeal in the same year. President Bill Clinton, however, vetoed the legislation.

“Repealing the Spanish-American War tax is long overdue,” said taxpayer advocate Grover Norquist. “We’ve been stealing money from telephone users for 107 years to fund a war it took us four months to win. Henry Bonilla’s cosponsorship brings this bill to a symbolic point. This is now a very serious effort. ”

A Senate companion to H.R. 1898 is expected to be introduced soon.

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Americans for Tax Reform is a non-partisan coalition of taxpayers and taxpayer groups who oppose any and all federal and state tax increases.  For more information, or to arrange an interview with Mr. Norquist please contact John Kartch at (202)785-0266 or by email at jkartch@atr.org.