In theory, the state government administers internal matters, while the Commonwealth government is responsible for defense, foreign policy, immigration, trade, customs and excise, postal services, and air and sea transport.
The council also has limited authority to impose local taxes in the form of an income tax, property tax, excise taxes, and service taxes.
The council also has limited authority to impose local taxes, in the form of an income and property tax that is subject to state level approval, excise taxes and service taxes.
TELEPHONE TAX -- Would remove a 3percentt federal excise tax on telephone service.
Putative losses on the direct tax ledger, by rolling back personal tax increases, are to be made up by raising excise taxes on the service sector from 10% to 12%.
In debating the bill, the Senate had adopted a number of tax-cutting amendments, including a repeal of the 3percentt federal excise tax on telephone service and the permanent extension of a corporate tax credit for research and experimentation costs.
These would eliminate the 3percentt federal excise tax on telephone service -- adopted as an emergency measure to finance the Spanish-American War in 1898, at a time just a handful of people had telephones -- and reduce the overall taxes on phone companies since they are no longer regulated monopolies.
If you excise its staggering debt service payments, it would be a profitable corporation.
Government revenue is derived from taxes on income and profits and on goods and services, from excise duties, and from value-added taxes.
Inland Revenue is to be merged with Customs and Excise - and 50,000 civil service jobs will be axed or relocated.
