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October 13, 2000 (7:35 AM EDT)

Congress Repeals 100-Year-Old Phone Tax

Congress Repeals 100-Year-Old Phone Tax

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The Senate Thursday followed the House in repealing a 3 percent phone excise tax. The tax, which appears as a line item on a customer's monthly phone bill, was established in 1898 to fund the Spanish-American War and was a luxury tax on the Americans who had phones then. The tax rollback, which was attached to the Treasury-Post Service spending bill, will cost the Treasury about $55 billion over 10 years. It awaits President Clinton's signature.


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