Senate Concurrent Resolution 569

A CONCURRENT RESOLUTION REQUESTING THE CONGRESSIONAL DELEGATION OF THE STATE OF MISSISSIPPI TO SUPPORT A REPEAL OF THE FEDERAL EXCISE TAX ON TELECOMMUNICATIONS.

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 BY THE SENATE OF THE STATE OF MISSISSIPPI, THE HOUSE OF REPRESENTATIVES CONCURRING THEREIN, That the Legislature of the State of Mississippi requests our Congressional Delegation to support a repeal of the federal excise tax on telecommunications.

BE IT FURTHER RESOLVED, That this resolution be transmitted to the Mississippi Congressional Delegation and to the President of the United States, and be made available to the Capitol Press Corps.