Federal Telephone Excise Tax

AAA

DEFINITION of 'Federal Telephone Excise Tax '

The federal telephone excise tax is a statutory federal tax on communications services. It is collected from a customer (of a telephone company, for instance) by the entity receiving any payment for facilities or services on which the tax is imposed.

INVESTOPEDIA EXPLAINS 'Federal Telephone Excise Tax '

An excise tax is a tax on the consumption of certain goods and services, often imposed on the quantity purchased rather that the dollar value. Other common excise taxes include gasoline and cigarette taxes. The federal telephone excise tax appears as part of a monthly telephone bill or wireless plan.

RELATED TERMS
  1. Fuel Tax Credit

    A federal subsidy that allows businesses to reduce their taxable ...
  2. Consumption Tax

    A tax on the purchase of a good or service. Consumption taxes ...
  3. Taxes

    An involuntary fee levied on corporations or individuals that ...
  4. Excise Tax

    1. An indirect tax charged on the sale of a particular good. ...
  5. Federal Communications Commission ...

    An independent U.S. government regulatory agency responsible ...
  6. Telecommunications Consumer Protection ...

    A U.S. federal law created in response to increased consumer ...
Related Articles
  1. Taxes

    Understanding The U.S. Tax Withholding System

    Understanding the origins of our tax withholding system is crucial to getting the most out of it.
  2. Taxes

    A Concise History Of Changes In U.S. Tax Law

    We look at how U.S. taxes have changed since their inception.
  3. Taxes

    Tax Withholding: Good For Government, Bad For Taxpayers

    It's important to understand where that money coming out of your paycheck goes and why - after all, you earned it.
  4. Stock Analysis

    Why Should Investors Read The Annual Reports?

    All investors should read each year the annual report from their top stocks, which contains valuable information and facts they weren't probably aware of.
  5. Economics

    Corporate Tax Inversion

    U.S. companies like Burger King use corporate tax inversion to take advantage of lower taxes abroad.
  6. Taxes

    10 Sources Of Nontaxable Income

    Taxes are often a deterrent from investing and saving. These financial practices will bring you no tax grief.
  7. Retirement

    Discover Master Limited Partnerships

    These unique investments provide significant tax advantages.
  8. Investing Basics

    How A Company Files With The SEC

    Filing with the SEC is not as complicated as you might thing -- just be meticulous about following the steps.
  9. Investing Basics

    Do U.S. High Corporate Tax Rates Hurt Americans?

    The United States has the highest corporate tax rate of the 34 developed, free-market nations that make up the Organization for Economic Cooperation and Development (OECD).
  10. Investing Basics

    EBIT (Earnings Before Interest and Taxes)

    Earnings before interest and taxes, or EBIT, takes a company’s revenue, or earnings, and subtracts its cost of goods sold and operating expenses.

You May Also Like

Hot Definitions
  1. Risk Averse

    A description of an investor who, when faced with two investments with a similar expected return (but different risks), will ...
  2. Fixed-Charge Coverage Ratio

    A ratio that indicates a firm's ability to satisfy fixed financing expenses, such as interest and leases. It is calculated ...
  3. Efficiency Ratio

    Ratios that are typically used to analyze how well a company uses its assets and liabilities internally. Efficiency Ratios ...
  4. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  5. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  6. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
Trading Center