The phone companies charge a war tax?

Take a look at your phone bill sometime and you’ll notice that the telecoms charge something called a “federal excise tax.” Of course, a phone bill is filled with a series of modest fees for one thing or another, so most of us just pay the bill and never give these line items a second thought.

But some opponents of the war in Iraq have taken a closer look at that excise tax — and have decided to stop paying it.

Peace activist Bill Sulzman in Colorado Springs protests the war in Iraq by refusing to pay the federal excise tax of about 50 cents on his monthly phone bill.

Sulzman also recruits others who are against US military involvement in Iraq to stop paying the tax, which was first adopted in 1898 to pay for the Spanish-American War.

The tax raises about $5 billion a year, which activists say goes to fund war efforts. The Internal Revenue Service won’t confirm that the money goes exclusively to the military but instead says it goes for general fund expenditures, including military spending.

Apparently, this isn’t a new phenomenon. The Denver Post explained that some opponents of the Vietnam War also withheld the phone tax as an act of civil disobedience.

As it happens, the telecoms aren’t thrilled with the tax and don’t appreciate being pulled into the tax-collection business in the first place. In fact, according to the article, Qwest, Verizon, Cingular, and AT&T all said they’ll “adjust” customers’ bills to remove the excise tax if customers request it. (The catch, of course, is that the phone companies are also required to alert the IRS with a list of those who don’t want to pay it.)

As a rule, I’m not fond of tax resistance, even when I agree with the cause. Once people can pick and choose which taxes are consistent with their ideology, and they start ignoring the “bad” ones, it’s a pretty dangerous road.

But am I the only one who didn’t know that this war-inspired tax existed?

Yes, you are the only one who didn’t know.

  • I had forgotten about this tax’s origin, but the explanation has had the “urban legend” quality about it. But there are wierder tax stories. Up until the federal income tax was enacted, the federal government made money mostly by taxing imports, exports, and alcohol.

    Here is a posting, (not endorsing the site, just found the information) that has some more information about the excise tax in the comments.

    http://lonestartimes.com/2005/12/10/weekend-comment-thread/

  • As someone who wasn’t paying the telephone war tax when young whippersnappers like you were still in plastic pants, dear CB, this is not new news. 🙂

    I too don’t really like hanging out with the tax resistance crowd, since most of them are far right droolers, but this is one tax that is directly about financing aggressive-imperial-wars-with-no-justification since its first inception, which does make it “fair game” to me – it’s a tax Mark Twain refused to pay.

  • I’m with you, CB. I never knew the excise tax
    was to finance wars, and I go back a ways.

    I don’t concur with those who resist the
    tax. As much as I hate this war in Iraq,
    we can’t have a cafeteria style
    government. That simply results in chaos
    and anarchy. We all pay plenty of taxes
    for things we don’t like or make use of.
    And taxes aren’t fairly assessed,
    either. In spades, with these guys in
    power. We have to work to change
    the system, and make it fairer.

  • Here’s a pretty good explanatory article – the tax has been around, off and on, since the Spanish-American War.

    link

  • Not pay the excise tax!? Next thing you know social conservatives will be using the idea to justify eliminating taxes to fund public schools, since they don’t approve of the curriculum.

    Sorry, just couldn’t resist.

  • How is it that this tax finances the war? I know that it was created to finance the Span-Am war, but at this point, it’s just going to the same pool as everything else. Origins aside, it’s just another tax. I mean, it’s not as if the military would have any less money if we cancelled this; or that the Iraq war would stop. If anything, one of the programs we like would take a cut, or they’d have to raise money somewhere else. And seeing as how we pay far far more in income taxes to finance the war, why the protest on this one tax?

    Thus said, we probably should cancel the tax and just raise a little more the normal way. I really hate all those stupid phone taxes.

  • Remember when Forbes (I forget his first name) was running for the Republican nomination (in 2000 I think).

    This was one of his issues.

  • I refused to pay this tax back in the 1980’s, never was questioned or required to pay it. Norma

  • During the Vietnam War, some protestors against the telephone excise tax used illegal phone-hacking techniques to make free long-distance calls, which they argued was a legitimate protest against the war and the tax. These were the first “phone phreaks,” the progenitors of the much-heralded “computer hackers” of the 1980s.

  • cbr, thank you for a belated xmas present. i can’t wait until tuesday to get this tax excised from my bill.

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