NewsNet5.comMoney
House & HomeFoodTechHomeTown ExpertsLiving GreenReal EstateWEDDINGSDatingAutosTravel
Democracy 2008EntertainmentEducationLegal SearchEmploymentDealsHealth ExpertsHoliday GuideCleveland247Family


E-Mail News Alerts
Get breaking news and daily headlines.
Browse all e-mail newsletters

3 Percent Fee On Cell Phones Started 107 Years Ago

Call To Repeal Tax Under Way

UPDATED: 11:53 am EST January 17, 2006

There is a call to repeal a cell phone tax most people probably don't even know they are paying, NewsChannel5 partner ONN reported.

Anybody who has ever tried to decipher a cell phone bill knows how tough it can be. One of the charges is a 3 percent fee on every cell phone bill in America. The origin of the tax predates the invention of the cellular phone by nearly a century.

Annie Brinkman and her friend, Stacey Lemle, don't know it, but every time they use their cell phones, they are supporting the war effort -- the Spanish-American War.

The 1898 war involved Teddy Roosevelt and the Rough Riders.

The fee began as a luxury tax on phones at the turn of the 19th Century. And we're all still paying for it today.

Phone bills don’t specify that the tax originates from the Spanish-American War. It is labeled as the federal excise tax, which amounts to 3 percent of every monthly bill.

"When you say it's a federal excise tax, you know, most of the time, oh it's the federal excise tax," said Laura Merritt of Verizon Wireless. "And that's just understood that it's a tax you pay. Where exactly those funds go is something that's a mystery to all of us."

It's not such a mystery anymore. And now, at least three federal courts have ruled the tax illegal. Many cell phone companies support a repeal of that tax. But they say they are caught in the middle.

"We're required to continue collecting that tax from our customers until the IRS tells us to stop doing that," said Merritt.

Some lawmakers are demanding cell phone companies stop collecting the tax and refund three years worth of fees.

But for now, every time you make a cell phone call, you'll continue to pay for a war fought more than 107 years ago.

According to the Web site www.mywireless.org, you can ask the IRS for a refund of up to three years of past taxes. You can also contact members of Congress to ask them to repeal the tax altogether.




Links We Like
Sponsored Content
Gastrointestinal ailments – whether temporary or chronic – can be unbearable. Learn how to recognize symptoms and treat digestive woes. More Details

Think you can’t own a little slice of personal heaven for less than $100,000? Think again. Check out these less well known spots where you can relax and get away from it all without breaking the bank. More Details

House, home, garage
Been reading stories about the increase in home foreclosures? In the market to invest? Search a national database of homes on the block. More Details


Headache pain could be more than you think. Learn how to tell the difference between a migraine and a ministroke. More Details

Don’t be left out. Make the switch to Digital TV.

Sponsored Links

Stock Quotes

GET A QUOTE
Enter Symbol

Credit Center

3 People Who Check Your Credit - Landlords, Employers & Insurers. Be the 4th.See Your Credit Score & Report Now for $0.
Experian

Credit Made Easy

Your customers love to make purchases with their credit cards, so isn't it about time your business started using one as well? More Details!

CreditCards.com

Sponsor

Best Local Rates On...



LocalNational

30 Yr Fixed Mortgage6.10%6.07%

48 Mo New Car Loan6.72%6.84%

$30k Home Eq Loan7.52%8.15%

6 Month CD2.89%2.95%
Help! I don't understand!
All Rates


Smart Savings Guide

What can you do to protect your pocketbook in a tough economy? Find ideas big and small in our Economic Survival Guide. More Details


E-Mail News

Get E-Mail News Headlines When YOU Want Them
 Breaking News Alerts
Noon Headlines
Daily Forecast

Find Local Businesses