Statement by Rep. Tom Bliley (R-VA) in Congressional Record. Re: Introduction of HR 3011, the Truth in Telephone Billing Act. Date: October 5, 1999. Source: Congressional Record, October 5, 1999, pages E2027.

HON. TOM BLILEY
in the House of Representatives
TUESDAY, OCTOBER 5, 1999

Mr. Speaker, today I am introducing H.R. 3011, the Truth in Telephone Billing Act of 1999.

This legislation is premised on a simple idea that consumers should know when their government is taxing them.

This may seem self-evident to my colleagues. But in reality, politicians and regulators all too often attempt to withhold from consumers information about the government's spending habits.

This is a particularly acute problem in the area of telecommunications services. The telecommunications services market has become a `cash cow' for politicians and regulators to fund their spending habits.

The `Gore Tax' is only one example of what has become a widespread problem not only at the Federal level but also with state and local governments as well. Here's how it usually works.

Rather than make its case for more government spending directly to the people, governments instead levy the tax on telecommunications service providers. The providers, in turn, pass the cost on to American consumers in the form of higher rates. What's worse, regulators then pressure the service provider to bury the tax in its rates, rather than permit the provider to clearly identify for the consumer how much of his or her monthly bill is attributable to government programs.

I know this because, last year, the Committee on Commerce conducted a thorough investigation of the Federal Communications Commission (FCC's) implementation of the Gore Tax. We found that the FCC imposed extraordinary and unprecedented political pressure on the Nation's largest long distance carriers (on whom the Gore Tax is levied) to withhold information from their subscribers about the true cost of the Gore Tax.

Whether one agrees or disagrees with the specifics of government spending, we should all be able to agree that the American people should at least know when they're being taxed, and for what purpose.

Congress has enacted similar legislation dealing with taxation of cable services. As part of the 1992 Cable Act, I included a provision in the law that permits cable operators to place a line item on consumers' monthly bills that identifies the portion of the bill that is attributed to `franchise fees' that cities and counties typically exact from cable operators as the `price' for offering service. Again, while we may differ on the merits of a spending program, consumers are entitled to know when they're being taxed, and for what purpose.

Accordingly, the legislation I am introducing today will ensure that consumers of telecommunications services will have a complete picture of how much their monthly bills can be attributed to government spending. The legislation would require each telecommunications carrier to identify on each subscriber's monthly statement: (1) The government program for which the carrier is being taxed, and the government entity imposing the tax; (2) the form in which the tax is assessed (e.g., per subscriber, per line, percentage of revenues); and (3) a separate line-item that identifies the dollar amount of the subscriber's bill that is being used by the carrier to pay for the government program.

Mr. Speaker, consumers have a right to know whenever their government levies taxes. By mandating that telecommunications companies identify these taxes through line-items, Congress will promote transparency in taxation.

Moreover, this bill will help to promote the legitimacy of government spending when financed by consumers of telecommunications services. Government can never claim that its programs have the support of the American people when the people are unaware of the extent of the cost.

Mr. Speaker, I urge my colleagues to join me in supporting H.R. 3011, the Truth in Telephone Billing Act of 1999.