Debate will last 3 days.

IN THE HOUSE OF REPRESENTATIVES

August 28, 2004

Mr. JOHN SMITH (for himself, Mr. TODD HEATH, Mr. JJ JACKSON, Mr. JUAN GALT, Abiezer Coppe, Mr. CHRIS PHIRMAN, Mr. LOUIS LAVERONE, Mr. THOMAS J. ALLUM, Mr. BRAD MCMILLIAN, Mr. JOE CIENCIOLO, Mr. JASON R. COLLINS, Mr. Verner McGyver, Mr. Jesse Ewiak, Mr. Schuyler Hatcher, Mr. Marcus Milam, et al) submitted the following bill;

A BILL

To amend the Internal Revenue Code of 1986 to phase out the excise tax on telephone and other communications services.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE

This Act may be cited as the 'Telephone Luxury Tax Phaseout Act of 2004'.

SECTION 2. PHASE OUT OF EXCISE TAX ON TELEPHONE AND OTHER COMMUNICATION SERVICES

(a) IN GENERAL- Chapter 33 of the Internal Revenue Code of 1986 (relating to facilities and services) is amended in Section 4251 by striking '3 percent.' and inserting in lieu thereof '2.5 percent for bills first rendered between November 1, 2004 and October 31, 2006, 2.0 percent for bills first rendered between November 1, 2005 and October 31, 2007, and 1.5 percent for bills first rendered between November 1, 2007 and October 31, 2009.'

( b ) Effective Date- The amendments made by this section shall take effect immediately following the enactment of this Act.

SECTION 3. FINAL REPEAL OF EXCISE TAX ON TELEPHONE AND OTHER COMMUNICATIONS SERVICES.

(a) IN GENERAL- Chapter 33 of the Internal Revenue Code of 1986 (relating to facilities and services) is amended by striking subchapter B.

( b ) CONFORMING AMENDMENTS-

(1) Section 4293 of such Code is amended by striking `chapter 32 (other than the taxes imposed by sections 4064 and 4121) and subchapter B of chapter 33,' and inserting `and chapter 32 (other than the taxes imposed by sections 4064 and 4121),'.

(2)(A) Paragraph (1) of section 6302(e) of such Code is amended by striking `section 4251 or'.

( B ) Paragraph (2) of section 6302(e) of such Code is amended--

(i) by striking `imposed by-- and all that follows through `with respect to' and inserting `imposed by section 4261 or 4271 with respect to', and

(ii) by striking `bills rendered or'.

( C ) The subsection heading for section 6302(e) is amended by striking `COMMUNICATIONS SERVICES AND'.

(3) Section 6415 of such Code is amended by striking `4251, 4261, or 4271' each place it appears and inserting `4261 or 4271'.

(4) Paragraph (2) of section 7871(a) of such Code is amended by inserting `or' at the end of subparagraph ( B ), by striking subparagraph ( C ), and by redesignating subparagraph (D) as subparagraph ( C ).

(5) The table of subchapters for chapter 33 of such Code is amended by striking the item relating to subchapter B.

( c ) EFFECTIVE DATE- The amendments made by this section shall apply to amounts paid pursuant to bills first rendered on or after November 1, 2009.

aye

Nay

Nay

aye

nay

Aye

Aye

Aye

Aye

Aye.

Bill passes 4-3. Mr. Cherry, Mr. Parkerson, Mr. Wilt were not eligible to vote, due to sign in after voting started.