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

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The FairTax Book: Saying Goodbye to the Income Tax and the IRS (MP3 - Abridged) Pub. Date: 10/11/2005 Publisher: HarperCollins Publishers

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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: 9780060875411
Publisher: HarperCollins Publishers
Publication date: 8/2/2005
Pages: 224
Product dimensions: 5.50 (w) x 8.25 (h) x 0.81 (d)

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.

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.

	A word
	A word
1	The history of our income tax	9
2	...Then came withholding	19
3	The myth of corporate taxes	31
4	Our current tax code : the cost of compliance	39
5	The embedded costs of our tax code	51
6	Bringing American business back home	61
7	The birth of the fairtax	69
8	The fairtax explained	73
9	The fairtax prebate : the key to fairness	81
10	Underground and offshore economy...taxed at last!	91
11	So we've done it : what happens to our economy	105
12	The opposition : where will it come from	113
13	Social Security and Medicare under the fairtax	123
14	Income tax outrages	139
15	Questions and objections	147
16	Okay : great idea : so what do we do now?	173

First Chapter

The Fair Tax Book
Saying Goodbye to the Income Tax and the IRS 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.

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 placedon 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.

The first attempt at an income tax came about to raise funds for what we know as the Civil War.1 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.

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."2 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.4 The Supremes ruled that the income tax was actually a direct tax on the citizens of the United States, a violation of the Constitution.

Now here's where things get really depressing. After an income tax was declared unconstitutional, the politicians in . . .

The Fair Tax Book
Saying Goodbye to the Income Tax and the IRS. Copyright © by Neal Boortz. Reprinted by permission of HarperCollins Publishers, Inc. All rights reserved. Available now wherever books are sold.

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Anonymous

Posted June 6, 2009

Fair Enough

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.

1 out of 1 people found this review helpful.
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Michael_Crabb

Posted May 2, 2009

I Also Recommend:

Don't like what the government is doing to your life and your grandchildrens future?

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

1 out of 1 people found this review helpful.
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Anonymous

Posted January 2, 2012

Great Pitch

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!!
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Anonymous

Posted November 22, 2011

A must read!!!!!

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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Anonymous

Posted November 10, 2010

WOW!

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

Posted April 12, 2009

more from this reviewer

I Also Recommend:

A Proactive Paradigm Shift In The Way American Should Be Taxed

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!!!
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Kay3714

Posted October 14, 2008

Should be required reading for every American

This book should be read and kept in every home in the USA. It explains just how the government is taking our hard earned money so they can spend spend spend on their pet projects while we struggle paying our bills they are wasting our money!

0 out of 1 people found this review helpful.
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Anonymous

Posted December 22, 2007

Finally, someone's doing more than just complaining about taxes - they're actually coming up with solutions!!

I LOVED this book! I originally heard about the Fair Tax idea from a friend, and had a lot of questions. By the time I was finished with this book EVERY SINGLE QUESTION I had started with had been answered. I am so glad that this idea is being spread. I hope that more people will read this book and educate themselves about the possibilities of a new tax system. As a businessman I deal with tax decisions on a regular basis. I have begun sharing this new tax philosophy with anyone who will listen. I no longer just complain about taxes, I have joined the fight to actually change them.
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Anonymous

Posted January 18, 2008

fair tax economic salvation

I read the book twice because I thought that I surely had missed something. great facts, understandable, pleasurable reading. I implore anyone who really loves this country and wants to see power in the hands of THE PEOPLE to enjoy this book. Easy 6 hour committment. It will open your eyes and your brain. One quick fact....My wise old father always used to say. 'Corporations do not pay taxes son. The people who use their products and services do'. Major focal point. I could go on and on with how this system of taxation would help me as asmall business owner. Just not having to invest 3 to 5 percent of my annual gross to prepare for the IRS gauntlet is enough reason. It is such a simple solution to a complex problem.
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Anonymous

Posted December 12, 2007

A very necessary book.

I used to be a fan of the flat tax, but after reading this book and applying the little I know of economics, I concluded that this is better than the flat tax. The person that said it was not going to happen has because the corporation are going to blame the price change to the government either did not read the book, or has no ideas of the dynamics of free market capitalism. If companies could get away with pricier products (especially when not in a monopoly or oligopoly) then they would do it now, they do not need a scapegoat. Every american who cares even a little about our economy should pick up this book.
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Anonymous

Posted October 10, 2007

History not learned will be repeated!

History shows us that in the 1773 a group of colonists dumped a little bit of tea Ok alot of tea into the Boston Harbor to show the king that they were being taxed unfairly. (Also known as the Boston tea pary). Hmmm What happened next? Oh yea I know we had a revolution and became the greatest nation on earth. Now that being said, most of Americans in the middle class are tired of the government taxing them to death without representation. History is why you need to read the book and relize that we need a FAIR TAX!
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Anonymous

Posted February 27, 2007

The only hope for America

Everything about this plan makes perfect sense. It would make the USA stronger than anyone could have ever dreamed. If you disagree, then you are too ignorant to function in a free society. Go live in one of your pinko fantasy worlds. There are many people smarter than you who KNOW it will work, with MILLIONS of dollars spent researching the plan. If you don't agree with the FairTax, you do NOT deserve to continue stealing my oxygen.
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Anonymous

Posted February 19, 2007

Never gonna happen...

The text in this book, much like communism is a good idea... but when placed in practice, it will never work. Humans are greedy individuals. In THEORY, once the taxes are put in place, the prices on consumer goods will go down to compensate... in REALITY, those companies will blame the government for the tax, and pocket the difference in profit, leaving the US consumer to pay the difference. Also, it is HIGHLY PROBABLE that the current president at the time this bill is passed will LINE ITEM VETO the abolishment of the IRS and leave intact the national sales tax, thus creating a new tax for the government while keeping the IRS as well. It is a very dangerous idea, and with the track record of humankind, should remain in this book and stay just as it is... a THEORY.
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Anonymous

Posted February 4, 2007

Never gonna happen...

The text in this book, much like communism is a good idea... but when placed in practice, it will never work. Humans are greedy individuals. In THEORY, once the taxes are put in place, the prices on consumer goods will go down to compensate... in REALITY, those companies will blame the government for the tax, and pocket the difference in profit, leaving the US consumer to pay the difference. Also, it is HIGHLY PROBABLE that the current president at the time this bill is passed will LINE ITEM VETO the abolishment of the IRS and leave intact the national sales tax, thus creating a new tax for the government while keeping the IRS as well. It is a very dangerous idea, and with the track record of humankind, should remain in this book and stay just as it is... a THEORY.
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Anonymous

Posted September 10, 2006

An unrealistic idea

The FairTax will likely end up on the same scrap heap of ideas as the 1980's balanced budget amendment, with which it share some common attributes: simplistic, easy to understand, ideologically correct, and totally out of touch with reality. Sadly, neither liberals nor conservatives will be able to resist the opportunity to attempt - or to be perceived to be attempting - social engineering, of whatever idelogical stripe, via the tax code. For that reason alone, the idea will never be implemented. An additional issue is that the FairTax is regressive for those services that are locally regulated (cable and utility rates, for example). Does anyone seriously think that cable TV rates will drop 20+ percent if the FairTax is implemented by the national government?
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Anonymous

Posted August 14, 2006

Building a Better America ...

This book is all about restoring the great dream of our Founding Fathers, that being, placing power in the hands of the people and limiting the power of big government! A facinating common-sense approach to economics that recognizes taxes are the money of the American workers, not the politicians. This book is a guide to taking home more money in your paycheck and eliminating the IRS. What more could you want to start building a better America?
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Anonymous

Posted June 27, 2006

What America Really Needs!

This book was great! It's really hard to make tax talk interesting, but Boortz did it with this book. It really opened my eyes to how the system really does SCREW us! Anyone that uses money needs to read this book. With enough people aware of the problem and the solution with our tax system, we may be able to see changes.
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Anonymous

Posted August 23, 2006

Great Idea

Neal Boortz and John Linder make a very compelling case for the fair tax. I certainly look forward to the day when I get to keep my entire paycheck. I believe something needs to be done concerning our tax system. More business people and wealthy individuals do more creative things to avoid paying taxes. This problem is due to our busted tax system. All this would go away if we adopt the fair tax. Finally, I would like to say that I was skepical at first, but like I said earlier, he makes a compelling case. It is interesting that all the economists agree on the growth aspect of this plan. They differ in how fast the economy grows. I really enjoyed this book.
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Anonymous

Posted June 5, 2006

Read it and pass it on

My Dad passed one of his copies down to me. I am going to have my wife read it next. Every American needs to read this book. It was a fun book to read about a sad topic - TAXES. But as this book says, we don't have to live this way any more. It is easy to make life good again.
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Anonymous

Posted March 9, 2006

Buy a copy for your congressman

I was so impressed by the FairTax book, that I began writing to my congress critters asking them to support the bill. And in case he hadn't heard about it, I hand delivered one to the office of C.W. 'Bill' Young (R) Florida. I recommend you do the same in your district.
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FairTax Book: Saying Goodbye to the Income Tax and the IRS

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Meet the Author

Read an Excerpt

The Fair Tax Book

Regan Books

Chapter One

Table of Contents

First Chapter

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Fair Enough

Don't like what the government is doing to your life and your grandchildrens future?

Great Pitch

A must read!!!!!

WOW!

A Proactive Paradigm Shift In The Way American Should Be Taxed

Should be required reading for every American

Finally, someone's doing more than just complaining about taxes - they're actually coming up with solutions!!

fair tax economic salvation

A very necessary book.

History not learned will be repeated!

The only hope for America

Never gonna happen...

Never gonna happen...

An unrealistic idea

Building a Better America ...

What America Really Needs!

Great Idea

Read it and pass it on

Buy a copy for your congressman