War Tax on Phone

In March of 1966 Michigan Bell Telephone sent the following notice to its customers:

“Your telephone bill reflects an increase in the federal excise tax on local and long distance telephone and teletypewriter services.

“The increase is a result of the Tax Adjustment Act of 1966, enacted to help meet the country’s need for additional revenues during the Viet Nam emergency.

“...we will continue to collect the tax for the government as we have done in the past.”

This newspaper has learned that some Michigan Bell subscribers have not paid their excise tax since last March, carefully deducting it from their bill and paying all other charges.

Although the phone company threatens originally to turn the matter over to the Internal Revenue Service after three months, it has not yet done so. Nor has it discontinued anyone’s service.