The U.S. Treasury eliminated the federal excise tax (FET) that has been in effect since the 1898 Spanish-American war. The tax, first instituted to fund the war, adds 3 percent to the monthly bills of the 214 million U.S. wireless subscribers, along with long-distance and wireline customers. Five different U.S. Circuit Courts of Appeals found the FET illegal, leaving the IRS under immense pressure to rescind the tax. Eliminating the FET will cost the U.S. Treasury $13 billion in refunds during 2007 and 2008, and the administration's budget forecast had relied on more than $42 billion from the FET through 2011. No doubt we'll likely see lawmakers try to institute some sort of replacement tax.
To read more about the U.S. Treasury's elimination of the FET:
- take a look at this article from RCR Wireless News