TaxProf Blog reports The Treasury Department and IRS announced this morning that after losing in five circuit courts of appeals,
This shows how much even a Republican government likes tax revenue. It took five loses in circuit courts of appeal to convince them to stop trying to collect this "temporary" 1898 "luxury" tax from the Spanish-American War.the Government is throwing in the towel and will no longer seek to enforce the 3% excise tax on long-distance telephone calls enacted during the Spanish-American War of 1898 as a "luxury" tax on wealthy Americans who owned telephones. The IRS will will issue $15 billion in refunds to consumers for long-distance telephone service taxes paid over the past three years
Glenn Reynolds blogged It's a nice reminder of how long "temporary" taxes can last, and of how taxes targeted at "the rich" often turn out to reach others.