| Our Telephone Taxes
Pay for War!
Every month, a great many of us who work
for and dream of peace are unknowingly paying a little bit more for war and militarism.
That's because every month when we pay our telephone bills, we are
paying a 3% federal excise tax on the local service, most of which
goes to the military.
If you are looking
for a strong, positive way to protest increasingly militaristic U.S. policies
and actions, consider refusing to pay this monthly tax.
History of the Federal
Telephone Tax
The federal excise tax itemized on our
telephone bills has been associated with war throughout most of its long history.
It was first imposed on toll calls in 1898, during the Spanish-American war
era, but removed in 1902. Imposed as a "temporary" tax by the War Tax
Revenue Act of 1914, this tax has been used to help raise extra dollars for World
War I, World War II, the Korean War, the Vietnam War, as well as weapons of every
conceivable kind. In 1990, the telephone tax became permanent and was set
at 3%. At that time the legislation stated that the revenue raised would be used
to fund child care, but the simple fact is that all of this money goes into the
General Fund, just as it always has. The majority of the money in the General
Fund, including the telephone excise tax, will continue to help finance a global
policy based on military might, weapons of mass destruction, and the expansion
of militarism into outer space.
Telephone
War Tax Resistance
The money raised by the telephone excise
tax goes into the general federal budget. Approximately one-half of expenditures
from this budget are used to pay for past and present military expenses as well
as military plans for the future.
While the federal tax on your local monthly telephone bill is relatively
small, this tax has raised nearly $89 billion from 1966 to 2001, and
abour $6 billion per year since. As more and more people refuse to
pay this tax to protest government spending policies, we will be sending
Washington an increasingly strong message that cannot be ignored,
a message backed by action.
Our refusal to pay the phone tax -- an act of civil disobedience --
is relatively risk free because the amounts are small. Now and then the IRS may
send collection letters for these resisted taxes. At times of widespread resistance
(e.g., during the 1960s "Hang up on War" campaign) the IRS used various enforcement
procedures on a few individuals, however such collection efforts cost the federal
government hundreds of dollars per person. The most likely consequence of becoming
a telephone war tax resister is a feeling of satisfaction.
How To Refuse the Phone Tax
The federal excise tax is itemized on each telephone bill.
Sometimes a federal tax itemization appears in more than one place on
a bill. (Prepaid phone cards include the tax in their cost, so cost,
so it is impossible to refuse the tax on cards.) To refuse this tax,
simply deduct it from your total bill each month and pay the balance.
A printed card, copies of which are available from NWTRCC, or a personal
note should be included with the payment, explaining your reasons for
refusing to pay the federal excise tax. Many people also send letters
to their congresspersons and other public officials indicating the action
they have taken.
Will My Phone Service Be Disconnected?
Generally, your phone company cannot legally disconnect your phone
service for nonpayment of the tax. IRS regulations (Code of Federal Regulations,
sect. 49.4291-1, title 26; 1996) clearly state that the phone company is supposed
to collect the tax, but has no power to enforce collection. Their role is only
to report the resister to the IRS. In the past the Federal Communications Commission
(FCC) ruled that AT&T (holding a long distance monopoly at the time) could
not cut off phone service to federal tax resisters. However, because there
are so many new companies, some may not yet be fully aware of their responsibilities,
and you may need to explain that the company should credit your bill each month
and report the refused amount to the IRS. If the amount is adding up over a number
of months, be sure to call the company and ask for it to be credited (ask for
a supervisor if the first person you speak with is not helpful). Resisters have
had mixed results with cell phone companies; please contact NWTRCC with your experiences.
Some companies have established special billing accommodations for war tax
resisters and will provide you with a form (others may send you forms for “tax
exempt” status, which are inappropriate in the case of war tax resistance). Contact
NWTRCC if you need help or if your company is threatening to cut off your phone
service. Some
Stories from Telephone Tax Resisters
What
To Do With Resisted Telephone Taxes
We can see the
cost of increasing military spending in the world around us: hunger, inadequate
housing, health care, public transportation, deteriorating urban areas, environmental
problems, and more. Many of us have also seen the cost of our country's militarism
to the people in other countries: death and destruction. Our resisted telephone
taxes, although small, can begin repairing the damage done here and around the
world. These taxes can be redirected to help meet human needs in this country
or elsewhere. When we refuse to give the tax to the government, we put the money
to positive social use rather than keeping it ourselves. The choice of positive
uses for these refused dollars is boundless. Although the individual amounts
are small, the combined total from thousands of us is indeed a significant amount
when it is used to work for peace and justice and meet human needs. By redirecting
these taxes, we are able to make a positive statement about our priorities. You
may choose to pool your resisted taxes with others in a war tax resistance “alternative
fund.” Contact NWTRCC for a list of such funds, which usually make grants and
donations to peace, human rights, service, and aid organizations around April
15.
Single copies of this brochure are free
with a self-addressed stamped envelope, or $12/100. See Resource
list. |
