Henry David Thoreau
"On the Duty of Civil Disobedience"
THE TELEPHONE TAX
The Federal excise tax on telephone service has been associated with war spending throughout most of its history. The first telephone tax -- on long distance calls only, was imposed by the War Tax Revenue Act of 1914. The first tax on local telephone service came during World War II. The war brought a 25% tax on long distance calls and a 15% tax on local service. This tax was retained during the Korean War. The tax was reduced to 10% on all telephone service in 1954. In 1965. Congress approved a reduction of the phone tax to 3% and planned to phase it out entirely in 1969.
However, in 1966, the Johnson Administration needed money for the escalating war in Vietnam. Congress passed a special tax bill which included a reimposition of the 10% phone tax. Wilbur Mills, Chairman of the House Ways and Means Committee explained during the Floor debate that "it is Vietnam, and only the Vietnam operation, which makes this bill necessary." The tax was extended in 1968 for two more years. In late 1970, another two-year extension was approved, but with the proviso that it be reduced by I % each year thereafter and repealed entirely on January 1, 1982. However, in January 1981, the tax was extended another year at 2%. The tax was due to expire on January 1, 1983, but instead jumped to 3% -- the first increase since 1966! From April 1966 through 1985 the total revenues from the Federal excise tax on telephone service amounted to $29 million.
Thousands of Americans refuse to pay the Federal excise tax on their phone bills each month as a way of protesting military spending. To refuse the tax, simply deduct that amount from your monthly telephone bill. Because of the divestiture of ATT, the Federal tax is usually itemized in !WO separate places on your monthly bill: the local portion and the long distance portion. if You nave a long distance telephone service other than ATT (such as Sprint or MCI), that bill will itemize a Federal excise tax. W hen you pay the bill (less the tax) enclose a note (like the one below) explaining that you are not paying the tax because of opposition to military spending. Some phone companies require that you notify them each time you pay the bill. FCC and IRS regulations prohibit telephone companies from interfering with your service for nonpayment of the tax.
For more information, contact:
Northern California War Tax Resistance
P.O. Box 2422, Berkeley, CA 94702-0422
(415)843-9877