FairTax Book: Saying Goodbye to the Income Tax and the IRS
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FairTax Book: Saying Goodbye to the Income Tax and the IRS

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by Neal Boortz, John Linder
     
 

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Wouldn't you love to abolish the IRS ...
Keep all the money in your paycheck ...
Pay taxes on what you spend, not what you earn ...
And eliminate all the fraud, hassle, and waste of our current system?

Then the FairTax is for you. In the face of the outlandish American tax burden, talk-radio firebrand Neal Boortz and Congressman John Linder are leading

Overview

Wouldn't you love to abolish the IRS ...
Keep all the money in your paycheck ...
Pay taxes on what you spend, not what you earn ...
And eliminate all the fraud, hassle, and waste of our current system?

Then the FairTax is for you. In the face of the outlandish American tax burden, talk-radio firebrand Neal Boortz and Congressman John Linder are leading the charge to phase out our current, unfair system and enact the FairTax Plan, replacing the federal income tax and withholding system with a simple 23 percent retail sales tax on new goods and services. This dramatic revision of the current system, which would eliminate the reviled IRS, has already caught fire in the American heartland, with more than six hundred thousand taxpayers signing on in support of the plan.

As Boortz and Linder reveal in this first book on the FairTax, this radical but eminently sensible plan would end the annual national nightmare of filing income tax returns, while at the same time enlarging the federal tax base by collecting sales tax from every retail consumer in the country. The FairTax, they argue, would transform the fearsome bureaucracy of the IRS into a more transparent, accountable, and equitable tax collection system. Among other benefits, it will:

  • Make America's tax code truly voluntary, without reducing revenue
  • Replace today's indecipherable tax code with one simple sales tax
  • Protect lower-income Americans by covering the tax on basic necessities
  • Eliminate billions of dollars in embedded taxes we don't even know we're paying
  • Bring offshore corporate dollars back into the U.S. economy

Endorsed by scores of leading economists and supported by a huge and growing grassroots movement, the FairTax Plan could revolutionize the way America pays for itself. In this straight-talking book, Neal Boortz and John Linder show you how it would work—and how you can help make it happen.

Product Details

ISBN-13:
9780060875497
Publisher:
HarperCollins Publishers
Publication date:
05/02/2006
Edition description:
Reprint
Pages:
224
Sales rank:
347,660
Product dimensions:
5.40(w) x 8.20(h) x 0.70(d)

Related Subjects

Read an Excerpt

The Fair Tax Book

Saying Goodbye to the Income Tax and the IRS
By Neal Boortz John Linder

Regan Books

ISBN: 0-06-087541-0


Chapter One

The History of Our Income Tax

No ... you haven't bought a history book. You've bought a book that details a new method of raising revenue for the federal government that will send the American economy into warp drive - while restoring financial privacy and economic liberty to American families and wage earners.

To plan successfully for the future, though, it's necessary to have at least a basic understanding of the past. If we're trying to kill a bureaucratic monster that destroys initiative and impedes economic growth, it's crucial that we know just what cave that monster crawled out of. In the words of the American philosopher George Santayana, "Those who cannot remember the past are condemned to repeat it."

As you read this depressing (though brief) history of the income tax in America - and the chapter on withholding that follows - keep this basic fact in mind: There is absolutely no limit to the government's desire for your money. When it comes to politicians' powers of taxation, the only limit they recognize is the people's willingness to tolerate the confiscation of their wealth. The amount of your earnings that the government is willing to leave in your pocket is only the amount it cannot seize without promoting an outright rebellion.

In the early years of our republic, the federal government levied few taxes. The Feds managed to get by with only a handful: taxes on alcohol, carriages, and some basic consumer items such as sugar and tobacco. When the United States went to war against Great Britain in 1812, sales taxes were placed on various luxury items to cover the cost. The cost of fighting a war can be high, but citizens are generally amenable to higher taxes in times of war because they realize that the cost of not fighting the war can be even higher. These patriotic feelings would be exploited in later years to the immense benefit of the free-spending political class.

In 1817, with Great Britain once again defeated, Congress did away with all internal taxes and funded the cost of the federal government with tariffs on imports.

Remember, please, that during this period of American history most governing was done at the local, not the national, level. This is as our founding fathers wanted it. Various people present when our Constitution was drafted expressed a belief that, in times of peace, roughly 95 percent of all governing should be at the state and local levels, with the remaining 5 percent coming from the federal government. Add that to the list of founding principles that have been all but ignored.

The first attempt at an income tax came about to raise funds for what we know as the Civil War. In 1861, Congress passed a bill assessing a 3 percent income tax on everyone earning between $600 and $10,000 a year. Six hundred dollars a year in 1861 would equal about $10,000 now. If you earned more than $10,000 (about $166,700 today), the rate went to 5 percent and a nice little inheritance tax was added to the mix, as were some additional sales and excise taxes.

The Union wasn't alone in enacting the income tax. The idea also caught hold south of the Mason-Dixon line, and the Confederate states enacted their own version. Misery, it seems, has always loved company.

By 1872, with the war over, the populace was starting to show its displeasure with the income tax. The political class reacted by eliminating the income tax. The Feds went back to taxing tobacco and booze. Yet the politicians' dreams of a permanent income tax weren't easy to squelch; the snake was hibernating, not dead. Over the next twenty years or more, members of Congress introduced no less than sixty-eight bills to enact another income tax.

The second term of President Grover Cleveland brought us the economic fiasco that's gone down in history as the Panic of 1893. First, the Reading Railroad (remember it from Monopoly?) went into receivership. A few banks and other businesses dependent on the railroad followed, and soon we had a general economic downturn. Now, as we've learned, when the economy goes sour that's a signal for the government to start taking more money out of the pockets of its citizens. It was time to try an income tax again.

Using the Panic as a handy excuse, eager politicians passed a law calling for a new income tax in 1894. Politicians then, as now, were not particularly eager to showcase just what they were trying to accomplish, so they made a blatant attempt to quell any possibility of a strong anti-income tax response from the voters by assigning a rather bizarre title to the new tax bill. They called it "An act to reduce taxation, to provide revenue for the government, and for other purposes." Just how much can you trust a politician who passes a law to tax your income, and calls it an "act to reduce taxation"?

The 1894 "act to reduce taxation" presented Americans with a 2 percent tax on everyone making more than $4,000 a year (the equivalent of $50,000 today). In a nice twist, our politicians decided that all government officials - state and local alike - would be exempt from the new tax. Not a bad deal! Tax the people, exempt yourself. That's what the politicians of 1894 meant by "equal treatment under the law." Why not give it a try? Who knows ... it just might have worked.

As it turned out, this 2 percent tax on incomes over $4,000 started a chain of events that culminated in a constitutional amendment and our current income tax system. President Grover Cleveland, you see, thought that the 2 percent income tax was unconstitutional, so he let it become law without his signature. The question of constitutionality was presented to the U.S. Supreme Court - and the income tax lost. The Supremes ruled that the income tax was actually a direct tax on the citizens of the United States, a violation of the Constitution.

(Continues...)



Excerpted from The Fair Tax Book by Neal Boortz John Linder
Excerpted by permission.
All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
Excerpts are provided by Dial-A-Book Inc. solely for the personal use of visitors to this web site.

Meet the Author

The host of radio's The Neal Boortz Show, syndicated in nearly two hundred national markets, Neal Boortz is the author (with Congressman John Linder) of the New York Times bestsellers The FairTax Book and FairTax: The Truth, and author of The Terrible Truth About Liberals. He has been nominated twice for the National Association of Broadcasters' Marconi Award and divides his time between Atlanta, Georgia, and Naples, Florida.

Congressman John Linder (R-Ga) is a longtime champion of tax reform and the primary sponsor of the FairTax Act. He divides his time between Duluth, Georgia, and Washington, D.C.

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FairTax Book: Saying Goodbye to the Income Tax and the IRS 4.5 out of 5 based on 1 ratings. 66 reviews.
Anonymous More than 1 year ago
I really enjoyed the Fair Tax book because of it's stimulating and provocative ideas. If the concept of instituting a fair tax in the federal government took hold, we may be able to stimulate our economy and promote the use of savings accounts. Great read for students of the economy and government!! It is also an easy read.
Michael_Crabb More than 1 year ago
Then this is the book for you. More than a way of changing how the federal government is funded. More than doing away with the April 15th blues. The revenue neutral and highly progressive Fair Tax (currently a bill in congress) is away of citizens regaining control over government. It puts you in control rather than being controlled. Just look at your paycheck. The part where the deductions are listed. Look at that total. Imagine it in your pocket ready to save, invest, or spend. Imagine living in a country where you decide how much tax you will pay out of that paycheck. Why did I re-list The Fair Tax book in the "Also Recommended" section. After reading it I started buying and passing out copies. After reading you'll want to both keep a copy and pass it on to others. Michael Krabb
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America has a huge inventory of foreclosed homes, and a wealth of talent ..It follows that an incentive to buy used product would clear that glut, put tradesmen back to work. That is just one benefit that should compel the reader to support this idea!!
Anonymous More than 1 year ago
A well written and easy to understand explaination of the way our government manipulates the system and the uneducated! Most people can learn to be anything they choose but few choose to study the complexities of the tax code. This leaves them at the mercy of lobbyists, government officials and special interest groups. Take the power from them and put it back into the hands of the populace!
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I firmly believe that this one piece of legislation could turn both our economy and our country around. It just makes too much sense. The only problem with it is that it will take control of the purse strings away from partisan politicians and back in the hands of the people. That is why this legislation faces such a tough battle. When was the last time congress voted to limit its own power?
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jas527 More than 1 year ago
I listen to Neal Boortz on the radio for about two years. He is boldly spoken, yet entertaining. He does very well in this book. I can tell where Congressmen John Linder wrights his parts. It is the difference between an old wise man and an old I told you so man. I love it! I recommend this book if you are looking for the following: general tax education, a look into the future, how to change that future, something better than flat tax, a simple fair solution to overcomplicated unfair current tax code. This book, with tax paying Americans will change America. I have joined the fight. I hope you will, too!!!