Hang This Up

Hang This Up

Written By
eWEEK EDITORS
eWEEK EDITORS
Mar 26, 2001
1 minute read
eWeek content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More

In 1898, the feds imposed a 3 percent excise tax on telephone calls to help pay for the Spanish-American War. The war ended that same year, but the tax is still with us. It has been repealed and reinstated several times to bolster federal coffers during World Wars I and II, the Depression, Korea and Vietnam. After Vietnam, the tax was reduced from 10 percent to 3 percent to help reduce the federal deficit.

In typical D.C. style, this permanent excise tax was tacked onto the Act for Better Childcare of 1990. But none of the money goes to kids. The $5 billion to $8 billion per year all goes into the general fund.

Question: Why is this tax still on the books?

eWeek Logo

eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site's focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

Property of TechnologyAdvice. © 2026 TechnologyAdvice. All Rights Reserved

Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.