Hold the phone

In April 1984 the House of Representatives passed the Tax Reform Act of 1984 (H.R. 4170) and the Senate its Deficit Reduction Act of 1984 (an amendment to H.R. 2163, a bill to amend the Federal Boat Safety Act of 1971), both of which provide for the continuation of the excise tax on telephone service at its 3-percent rate for an additional two years, through 1987. This action was deemed appropriate by congress in light of the large existing budgetary deficits. nThis paper presents an overall view of the Federal excise tax on telephone service. A description of the history of this tax and revenue collections are followed by an explanation to clarify the relationship of this tax to the U.S. actions in Vietnam during the 1960s and 1970s. Finally, this paper concludes with the principal arguments made by proponents for continuation of the tax and the opponents of the tax who support repeal.,Abstract ; Current Law and History ; Revenue Effects ; Clarification of the Role of the Telephone Excise Tax and U.S. Action in Vietnam ; Summaries of the Principal Arguments for and Against the Repeal or Continuation of the Federal Excise Tax on Telephone Service.,CRS 84-641 E,"May 16, 1984.",SuDoc# LC 14. 18/3