14 December 2005

Telecom and taxation

The USA Today ran this article in which they reported that nine federal courts have ruled a 3 percent federal tax doesn't apply to phone calls that are priced only by how long a person talks -- not by how far the call travels. That means that many cellular phones, Internet phone service, and long distance calls would be exempt from the tax. Taxpayers would be due three years of refunds, or about $9 billion. It seems easier to institute taxes than to repeal them (see this, for another example ...) This follows this a different but related article on tax protesters with regard to the same tax. Politics makes curious bedfellows.

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