A Little Help with the Phone Bill Is Better than None!

The Internal Revenue Service and Treasury Department announced acquiesence on telephone taxes on long-distance and wireless services. The elimination of the tax will cost about $13 billion in refunds and interest for 2006 and will reduce Federal tax revenue by about $6 billion annually. Taxpayers will be eligible for refunds on taxes paid from February 28, 2003 to May 25, 2006 plus accompanying interest. The tax was originally charged in 1898 and has been challenged in court since earlier in the decade. The IRS has continued to insist on the tax even though five circuit court have struck it down. Treasury Secretary John Snow said that the government did not deserve the taxes and that he will work with Rick Santorum (R-PA) to eliminate the tax on local service as well.

Although receiving the refund (which will be very small for most people) is nice, the most refreshing concept expressed in the article is the statement by Secretary Snow that taxes are not an automatic right of the U.S. Government.