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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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Repeal of the Spanish-American War Tax Now Has 218 Cosponsors
Majority of House of Representatives signs on to end 108-year-old tax on talking

WASHINGTON – H.R. 1898, which would repeal the 3% federal excise tax on telecommunications, a 108-year-old “temporary” tax enacted to fund the Spanish-American War, gained its 218th cosponsor this week. A majority of the House is now cosponsoring the legislation.

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.

“This is a real benchmark in the battle to finally end this tax,” said taxpayer advocate Grover Norquist. “Now a majority of the House would not only vote to repeal the tax, but have proactively signed on as cosponsors. Repealing the Spanish-American War tax this year would be a real feather in the cap of the 109th Congress.”

The Senate companion to H.R. 1898, S. 1321, sponsored by Sen. Rick Santorum (R-PA), has been reported favorably by the Finance Committee and awaits a full Senate vote. However, the Constitution requires that the House pass tax legislation before the Senate may act.

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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.