The Treasury Department announced this morning that after losing in five circuit courts of appeals, the Government is throwing in the towel and will no longer seek to enforce the 3% excise tax on long-distance telephone calls enacted during the Spanish-American War of 1898 as a "luxury" tax on wealthy Americans who owned telephones. The IRS will issue $15 billion in refunds to consumers for long-distance telephone service taxes paid over the past three years.
Glen Reynolds notes: "It's a nice reminder of how long 'temporary' taxes can last, and of how taxes targeted at 'the rich' often turn out to reach others."
Thursday, May 25, 2006
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