After losing five appellate cases in the last year, the government has decided to end the 3 percent federal excise tax on long-distance telephone service:
The U.S. Treasury Department said it would end its litigation to defend the tax and taxpayers will be able to reclaim the money on their 2006 tax returns filed next year.
The tax was enacted during the Spanish-American War of 1898 as a "luxury" tax on wealthy Americans who owned telephones.
Comments