Luxury Tax?

This is coolbert:

You may recall my previous blog entry about how war is BAD for the economy. And one of the reasons why war is bad for the economy is excessive taxation. While perusing the web, I came across this article that just seems to say, "WOW, does this ever make my point!!!" Well, here it is:

"An influential congressional committee has dropped a political bombshell by suggesting that a tax originally created to pay for the Spanish American War could be extended to all Internet and data connections this year.

The committee, deeply involved in writing U.S. tax laws, unexpectedly said in a report Thursday that the 3 percent telecommunications tax could be revised to cover "all data communications services to end users," including broadband; dial-up; fiber; cable modems; cellular; and DSL, or digital subscriber line, links.

Congress enacted the so-called "luxury" excise tax at 1 cent a phone call to pay for the Spanish American War back in 1898, when only a few thousand phone lines existed in the country. It was repealed in 1902, but was reimposed at 1 cent a call in 1914 to pay for World War I and eventually became permanent at a rate of 3 percent in 1990."

Okay, now, let us get this straight. A tax used to pay for the Spanish-American war [that is 1898 for those of you that only finished college with a baccalaureate degree], is NOT ONLY STILL in effect, but is going to be increased. At the time there were only a "few thousand phone lines", now there is a staggering number. Then, in 1990 became permanent as a "luxury" tax. And is now going to apply to all sorts of data communications. That of course will include all the modern computer hookups and associated impedimenta of the digital age.

This is what was NEVER intended. But has become to pass. And all because of a war that was fought in 1898?!

This is the type of thing, this taxation, that is BAD for the economy. And all for a war folks have forgotten about long ago!!!???

coolbert.