Telecom tax structure in for an overhaul?

摘要

For the first time in 40 years, the nation's telecom tax system might be getting an overhaul. The federal excise tax on communications services — which adds 3% to the cost of voice services — had its last major revision in 1965, during an era of monopoly telephone service. Several proposals are floating around Washington to modify, expand or repeal this tax in light of the migration of voice services to the Internet. At the same time, states and municipalities are considering ways to revamp their taxes on telephone services, which add another 10% to 35% to monthly bills. States are considering proposals that would apply a lower tax rate on all information services, including voice, data and video available from cable, satellite, wireless and ISPs. But it's unclear whether any of these reform efforts will pass through Congress or enough state legislatures to make a difference to corporate customers. "These are entrenched taxes that have been around for a better part of a century born of an age when telephone companies had a monopoly", says Lee Goodman, a partner with law firm LeClair Ryan. "Now the taxes are irrational in the information economy".