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WSJ: Treasury Department Might Cut Phone Excise Tax

The Wall Street Journal reported on Friday the U.S. Treasury Department is developing a plan to discontinue a 3 percent federal excise tax on long-distance and wireless telephone calls.

The paper also said the government is considering refunding billions of dollars to consumers and businesses that have paid the tax.

“Government officials are holding closely guarded discussions on how to best handle the repayment process as well as mitigate the impact of about $60 billion in potential refunds and lost federal revenues over the next five years,” the Journal reported.

The possible end of the tax comes after a series of court rulings finding the government is misapplying the tax, according to the Journal. Citing government officials, the paper added that rather than continuing to fight similar lawsuits, the Treasury is conceding defeat and discontinuing the tax.

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