FIRST REGULAR SESSION

House Concurrent Resolution No. 5

93RD GENERAL ASSEMBLY

0652L.01I

            Whereas, the federal excise tax on communications was enacted in 1898 for the purpose of funding the Spanish-American War; and

            Whereas, the tax was introduced as a "temporary" luxury tax; and

            Whereas, telephone service is no longer a luxury, but rather a necessity for consumers of all income levels; and

            Whereas, the federal excise tax is regressive, as low-income Americans pay a higher percentage of their income for telephone services than high-income Americans; and

            Whereas, telecommunications services are the infrastructure upon which new technologies including the Internet depend, and therefore the telecommunications excise tax discourages expansion of both the telephone infrastructure and new technologies; and

            Whereas, the federal excise tax on telecommunications flows into the general fund, rather than being earmarked for a specific purpose; and

            Whereas, both Houses of Congress passed a repeal of the federal excise tax on telecommunications in 2000, which was vetoed by President William Jefferson Clinton:

            Now, therefore, be it resolved that the members of the House of Representatives of the Ninety-third General Assembly, First Regular Session, the Senate concurring therein, hereby request the members of the United States Congress to support a repeal of the federal excise tax on telecommunications; and

            Be it further resolved that the Chief Clerk of the Missouri House of Representatives be instructed to prepare a properly inscribed copy of this resolution for each member of the Missouri Congressional Delegation.