Main Nav

Congress Proposes Tax on all Net, Data Connections

Saturday, January 1, 2005


A report prepared by the Congressional Joint Committee on Taxation proposes extending a 100-year-old tax on phone service to some or all data connections. The tax originated in 1898 to pay for the Spanish American War. After being repealed, it was reinstituted to pay for World War I and was eventually set at 3 percent. With the decline of traditional phone service, the committee is investigating ways of adding to federal tax revenues. The report outlines several approaches to an extension of the tax, including one that would levy the 3 percent rate on all data communications. The report says, "Extending the tax to all communications requires taxing Internet access, bandwidth capacity, and the transmission of cable and satellite television." James Maule, professor of tax law at Villanova University, is skeptical that Congress would push for such an extreme measure. He suggested that the committee's goal of including that as one option is to make the others "look a bit more palatable."

Download This Resource

Tags from the EDUCAUSE Library


Connect: San Antonio
April 22–24
Register Now

Events for all Levels and Interests

Whether you're looking for a conference to attend face-to-face to connect with peers, or for an online event for team professional development, see what's upcoming.


Digital Badges
Member recognition effort
Earn yours >

Career Center

Leadership and Management Programs

EDUCAUSE Institute
Project Management



Jump Start Your Career Growth

Explore EDUCAUSE professional development opportunities that match your career aspirations and desired level of time investment through our interactive online guide.


EDUCAUSE organizes its efforts around three IT Focus Areas



Join These Programs If Your Focus Is


Get on the Higher Ed IT Map

Employees of EDUCAUSE member institutions and organizations are invited to create individual profiles.



2015 Strategic Priorities

  • Building the Profession
  • IT as a Game Changer
  • Foundations

Learn More >

Uncommon Thinking for the Common Good™

EDUCAUSE is the foremost community of higher education IT leaders and professionals.