AT&amp;T and MCI have protested the tax and pledged to pass the cost on to  MCI charges 5 percent on all out of state long-distance calls, and AT&amp;T charges a flat rate.
( ( ( ( ( ( ( AT&T and ) MCI ) ( have ( ( ( ( ( protested ( the tax ) ) and ) ( pledged ( to ( ( pass ( the cost ) ) ( on ( to ( MCI charges ) ) ) ) ) ) ) ( 5 percent ) ) ( on ( all ( out ( of ( state ( long-distance calls ) ) ) ) ) ) ) ) ) , ) and ) ( AT&T ( charges ( a ( flat rate ) ) ) ) ) . )
(ROOT (S (S (NP (NNP AT&T) (CC and) (NNP MCI)) (VP (VBP have) (VP (VP (VBN protested) (NP (DT the) (NN tax))) (CC and) (VP (VBN pledged) (S (VP (TO to) (VP (VB pass) (NP (DT the) (NN cost)) (PP (IN on) (PP (TO to) (NP (NNP MCI) (NNS charges)))))))) (NP (CD 5) (NN percent)) (PP (IN on) (NP (NP (DT all)) (PP (RB out) (IN of) (NP (NN state) (NN long-distance) (NNS calls)))))))) (, ,) (CC and) (S (NP (NNP AT&T)) (VP (VBZ charges) (NP (DT a) (JJ flat) (NN rate)))) (. .)))
AT&T and MCI believe the tax is fair and have decided to absorb the cost instead of passing it on. 
( ( ( AT&T and ) MCI ) ( ( believe ( ( the tax ) ( ( ( is fair ) and ) ( have ( decided ( to ( ( absorb ( the cost ) ) ( instead ( of ( ( passing it ) on ) ) ) ) ) ) ) ) ) ) . ) )
(ROOT (S (NP (NNP AT&T) (CC and) (NNP MCI)) (VP (VBP believe) (SBAR (S (NP (DT the) (NN tax)) (VP (VP (VBZ is) (ADJP (JJ fair))) (CC and) (VP (VBP have) (VP (VBN decided) (S (VP (TO to) (VP (VB absorb) (NP (DT the) (NN cost)) (PP (RB instead) (IN of) (S (VP (VBG passing) (NP (PRP it)) (PP (IN on)))))))))))))) (. .)))