A federal tax enacted more than a century ago as a “temporary tax” may finally be revoked. Iowa Senator Chuck Grassley says the repeal of the three-percent federal excise on all Americans’ monthly telephone bills has been included in the annual spending bill.The tax was put in place in 1898 to pay for the military costs associated with the Spanish-American War. Grassley says it’s ridiculous the tax has been able to stick around for 102 years.While the three-percent tax hits every telephone owner in the U-S every month, Grassley says getting rid of the tax will be especially welcome to one segment of the population, the low income.Grassley says rolling back the tax will put more of the taxpayers’ money where it belongs — in their own pockets. While the measure has passed both the House and Senate, it still awaits President Clinton’s signature.
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