FairTax: The Truth: Answering the Critics Reviews

• This is a ten star read my friends

  
  By A23US54A0OILE4 on 2008-02-12
  If you didn't get (grasp) the Fair Tax idea in the first book, or if you listened to the fearful, or the misinformed, or those who have no understanding of how the economy works and how the present tax system acts as a brake on the economy, then Fair Tax: The Truth: Answering Critics by Neal Boortz and John Linder is a must read for you. In fact this should be required reading on the part of every American who considers himself literate.
  
  One by one, the questions are answered in a logical, calm manner. The misunderstandings and intentional misrepresentations are taken on by Boortz and Linder in a point by point response. While I do have disagreements from time to time with Mr. Boortz when I listen to him on the radio I am 100% on the same page with him on the tax issue. His and John Linders system makes so much sense I can't see how anyone doesn't get it.
  
  This isn't just a rehash of the first Fair Tax book either. There is new information contained in Fair Tax: The Truth.
  
  Well done Neal and John.
  
  

• Avoiding the Critics -- Again

  
  By A1Z73132PZCIFA on 2008-02-13
  In order to answer one's critics, one must first face criticism honestly. Unfortunately, the authors fail to do so in their latest book.
  
  The primary criticisms of the FairTax fall within three categories: (a) the FairTax rate would need to be extremely high in order to replace our current tax system and still fund the government, (b) the burden of the FairTax will fall primarily on the middle class, and (c) the FairTax will be virtually impossible to enforce. Despite listing these criticisms among the many that they allegedly refute, the authors fail to address any of these three major criticisms with any degree of substance.
  
  1. The Tax Rate. The FairTax has been studied several times over its decade-plus year history by a number of independent economists, policy groups, and government agencies and commissions, including; (a) the Joint Committee on Taxation (2000), (b) the Institute on Taxation and Economic Policy (2004); (c) William Gale of the Brookings Institution (2005); (d) the President's Tax Reform Panel (2006); and (e) Bruce Bartlett (2007). Each of these groups or individuals produced studies or reports that are available on-line to any interested person. Some of these studies are extremely thorough and well-documented, and -- to the extent they examined the required rate under the FairTax -- they generally concluded that the true FairTax rate would need to be much higher than the rate advocated by the FairTax proponents, usually somewhere in the 50%-60% range.
  
  What is the authors' response to these studies? That they're wrong. That's about it. No real analysis of the substance of those studies. Essentially, the authors say that the studies critical of the FairTax must be wrong because (a) they were done either by a bunch of mindless bureaucrats or biased think-tanks, and (b) the studies contained projections over multi-year periods. Of course, elsewhere in the book the authors are perfectly willing to tout the merits of studies favorable to the FairTax, despite the fact that such studies were done by bureaucrats or think-tanks (usually paid by AFFT) and contained projections of multi-year (and, sometimes, even multi-decade) periods.
  
  If the authors seriously wished to refute any of these studies critical of the FairTax, they could have presented the studies in an honest and straightforward fashion, and then attempted to point out the flaws in the critics' analyses. Instead, they mostly take potshots at, make sarcastic comments about, and impugn the motives of anyone who dared produce a report suggesting that the tax rate would need to be far higher than that advocated by the FairTax proponents. That can hardly be considered "answering the critics."
  
  I would suggest that anyone who is really interested in substantive debate on the pros and cons of the FairTax, and why the required rate would need to be so high, to simply pull up one of those studies on the web and read it. Particularly the William Gale study (May 15, 2005 ed. of TaxNotes magazine) and the final report of the President's Tax Reform Panel (Chapter 9). You will learn far more about the problems with the FairTax from those studies than you will from either of the FairTax books.
  
  2. Effect on the Middle Class. Any tax reform plan that eliminates taxes on the poor and slashes taxes on the wealthy can only be revenue neutral if it raises taxes on the middle class. That's not bashing the rich; it's simply an economic fact.
  
  How do the authors' respond to this argument? First they seem to say that the rich currently don't really pay all that much in taxes, because capital gains and dividends are only taxed at a 15% rate. Of course, that is wholly inconsistent with the authors' usual complaint that the rich pay far too much in taxes. It also conveniently overlooks the fact that the rich tend to spend a much smaller percentage of their incomes on goods and services than do the middle class. Thus, if Warren Buffet earns a mere $100 million in capital gains this year, he might currently be taxed at a 15% rate. But if we switch to the FairTax and Mr. Buffet only spends a couple of million dollars on taxable goods and services (which for him would probably be a lot), his effective tax-rate would go close to zero.
  
  The fact is that is that, for better or worse, the rich currently pay higher effective income tax rates than do the middle class. Moreover, those fortunate enough to inherit large amounts of wealth also pay high estate taxes. Under the FairTax, both the income tax and the estate tax would be eliminated, and replaced with a tax plan that would fall disproportionately harder on the middle class.
  
  The authors then say that middle class folks shouldn't complain about paying more under the FairTax. If they just worked harder and spent less, they'd get soon get rich enough so that their effective tax burdens would go down. That argument might make good radio, but it hardly addresses the fundamental issue that the FairTax increases the tax burden on the middle class. (To be fair, in another part of the book, the authors discuss a study done by Dr. Laurence Kotlikoff of Boston University who believes that, over the long run at least, the tax burden on the middle class would not increase under the FairTax. While I certainly respect Dr. Kotlikoff, I think it's fair to say that he's probably the only mainstream economist who's ever studied the FairTax who actually believes that would be the case. Other economist who's studied the FairTax has concluded that it would substantially raise the tax burden on the middle class.)
  
  And for those who believe that the tax burden under the FairTax is going to be shifted to illegal aliens and the "underground economy" (which is a favorite argument of the authors), if you actually do the math you will find that the money's simply not there. Even the economists who support the FairTax agree that we're not going to be getting much additional tax revenue from those sources.
  
  3. Enforcement Issues. The FairTax will be incredibly simple to avoid. Folks can and will choose to buy tax-free used cars and tax-free existing homes rather than new cars and newly built homes, each of which would be subject to the FairTax. We'll buy our vacation homes FairTax-free as "investment expenses," and rent them out from time to time to satisfy the FairTax police. We'll send our children to FairTax-free private schools. We'll go skiing FairTax-free in Canada. Paris Hilton might decide to spend her tax-free inheritance on year-long FairTax-free splurges on the French Riviera. A talk-show host might use his tax-free book royalties to buy a FairTax-free yacht in the Bahamas and use his tax savings to buy a FairTax-free luxury villa on the same island.
  
  In other words, the government won't be able to force people to buy taxable goods and services, and, being the tax-hating Americans that we are, most of us will choose to buy as few taxable goods and services as possible and instead shift as much of our consumption as possible to tax-free purchases. Thus, expected tax revenues will plunge and the tax rate will need to be increased even higher.
  
  The authors' response to this argument? Well, they basically ignore it. They do spend several pages arguing that illegal tax evasion won't be too bad under the FairTax, but they completely ignore all the perfectly legal ways that folks will alter their spending habits to avoid paying the FairTax. It's as if the authors believe that we'll all have so much extra money in our pockets under the FairTax that we'll consider it our patriotic duties to pay the FairTax and gladly consume as many taxable goods and services as possible.
  
  And for those of you who still believe that prices won't rise under the FairTax so there wouldn't be any reason to try to avoid paying the tax, the authors -- to their credit -- devote several pages to explaining why prices must rise under the FairTax if we are to keep 100% of our paychecks.
  
  Having said all that, there is certainly a degree of merit to the FairTax proposal, which is why it has attracted so many loyal supporters. We can all probably agree that our current tax system is an unholy mess that is in need of serious reform. The idea of replacing our current convoluted hodgepodge of a tax system with one comprehensive tax that we could all understand and that would be simple to comply with is certainly appealing. And most economists believe that a consumption-based tax system is more efficient than an income-based system and less likely to be corrupted by lobbyists and the political system. All of that is aptly explained by the authors.
  
  But any tax reform plan -- including the FairTax -- is going to have pros and cons, good points and bad points, create winners and losers. In order to evaluate the merits of any proposed tax reform plan, one has to be willing to honestly discuss the good as well as the bad. And that's where the authors fail, and ultimately do their readers and their supporters a disservice. They simply cannot honestly discuss the many substantive criticisms of the FairTax. It's as if they're afraid that if they honestly admit -- let alone discuss -- the real problems with the FairTax proposal, nobody will be left to support it.
  
  Thus, the authors do not really "answer" their critics at all, at least with respect to the major criticisms of the FairTax. Rather, they duck the hard questions and make pithy, sarcastic, substance-free comments in books and on the radio where they never need to engage in real debate. People genuinely interested in examining the merits of the FairTax never read or hear any truly substantive discussions of the pros and cons of the proposal, but instead are treated to a barrage of declarative statements (usually shouted over the radio) of what amount to "We're right! Everyone else is wrong!"
  
  Neal Boortz -- who's clearly a talented talk-radio host -- has spent literally hundreds of hours promoting the FairTax on his radio show over the last several years, but, to my knowledge at least, has never allowed even one knowledgeable critic on his show to honestly debate its merits. Congressman Linder -- who by all accounts is a decent and hard-working Congressman -- routinely avoids debating his opponents on the FairTax.
  
  If Mr. Boortz really wants to answer the FairTax's many critics, he can simply invite a few such critics onto his show to discuss the pros and cons of the FairTax in an open and honest fashion, and, hopefully, free from the sort of personal attacks that are usually made against critics of the FairTax. Congressman Linder could hold town-hall debates -- not merely pro-FairTax rallies -- in which the merits and criticisms of the FairTax could really be explored.
  
  To help get things going, here's a partial list of critics of the FairTax with whom Mr. Boortz and Cong. Linder might consider debating or discussing the good points and the bad points of the proposal:
  
  William Gale, The Brookings Institution
  Dale Jorgenson, Harvard University
  James Poterba, MIT, and member of the President's Tax Reform Panel
  Lindy Paul, former chief economist of Joint Committee on Taxation
  Bruce Bartlett, conservative columnist and former economist with the Reagan administration
  Rich Lowry - National Review
  Jay Bookman - Atlanta Journal Constitution
  Allen Buckley - Attorney and Libertarian candidate for U.S. Senate
  John Suggs -- Editor, Creative Loafing Magazine
  Robert McIntyre -- Citizens for Tax Justice
  Any editor of the Wall Street Journal editorial page
  
  There are many others to choose from, but that's a good list to start with. I suspect that any of them would probably be more than willing to spend an hour or more of their time to discuss their concerns about the FairTax, either on the air or at a town-hall event. If the authors really wish to confront and respond to the many critics of the FairTax, they didn't need to write a book. All they really need to do is pick up the phone, call up one of a dozen knowledgeable critics and turn on Mr. Boortz's microphone.
  
  

• The fair tax defended

  
  By A2Z6BXEMDDLJ5Z on 2008-02-12
  This book is much needed. Most people I hear speak ill of the fair tax do not exhibit the faintest glimmering of a rudimentary understanding of it. In serious academic debate, to badmouth something you first fail to accurately portray is laughed at; in politics it's standard procedure. It's called the straw man fallacy: to attack a caricature of a position instead of the position itself. Such an argument is fallacious because a refutation of a caricature can never be more than a caricature of a refutation.
  
  This book clears up many misunderstandings, the most common coming from all these idiots running around shouting that "If the fair tax is passed everything will automatically become 27% more expensive!" This is not true, at all. Why? Because products already contain concealed in their list price what is approximately a 27% hidden (or "embedded") tax. If the fair tax is passed this will be removed and replaced with a transparent 27% sales tax. Thus, most products will cost the same as they did before. The fair tax will also, in one fell swoop, wipe out almost all under-the-table, shady dealings. The "underground economy" will automatically disappear. No more will strippers, prostitutes, thieves, drug dealers (and yes, waiters) get to avoid paying taxes by not declaring their cash income. Also, in one fell swoop, Hey Presto! all illegal immigrants will instantly have to start paying their fair share. If you think this in-and-of-itself wouldn't cut down on illegal immigration you're nuts.
  
  When the fair tax is properly understood one can see that it is also entirely false that it will harm poor people. How? Poor people will receive a prebate under the fair tax system, meaning, they won't pay taxes at all! Further, if you spend more than the cutoff for the prebate, THE REASON THAT THE FAIR TAX IS IN FACT "FAIR" IS THAT UNDER IT YOU AND ONLY YOU WILL DECIDE HOW MUCH YOU PAY IN TAXES. No more will lofty third-party decision makers who do not have to suffer the consequences of their own inept policies get to decide for you. If you don't want to pay a bunch of taxes then cut down on your consumption. If you want to save money and keep what you earn then don't go blow your earnings on a bunch of crap you don't need.
  
  Boortz is good at pointing out that poverty as it exists in America today is a behavioral problem. A few decades ago a top USSR reporter and a USA reporter changed places in a "cultural perspective" piece. When the soviet reporter toured some of the worst neighborhoods in the USA in order to do a piece on American poverty, what was his conclusion? That there is no poverty in America! What? No poverty in America? Not really. The average person who lives below the poverty line in America has a refrigerator, a car, air conditioning, a cell phone, a microwave, cable TV and a DVD player. In the average below-poverty household in America people have more square feet per person than the average middle and upper-middle class people in Europe. The average person who lives below the poverty line in America, by the way, is not starving; in fact they eat way more than the average upper-class person and their only danger is that they are more likely to be overweight! And as Sowell brilliantly points out, comparing the bottom and top 25% of income earners is largely meaningless and misleading, because you are largely just comparing younger workers to older ones.
  
  So if the man isn't "keeping them down," or whatever other hippy BS slogan you prefer, then what's the deal? Well, consider this: In the USA, right now, the average person who lives below the poverty line spends $2.50 for every $1.00 earned and only works 16 hours a week. That's right, 16 hours a week! If they simply upped that to the standard 40 hours a week this in and of itself would lift most of them above the poverty line! In short, poverty in America is less a function of earning power and more a function of spending behavior. A LOT of people who earn plenty of money are still in astronomical credit card debt because of irresponsible spending. I believe that it's in a clever little book by Jon Hanson called Good Debt, Bad Debt where the point is made that one thing most American poor people do share in common is that they are dishonest about their spending habits. They will claim until they are blue in face that they cannot afford to invest 10% of their income in a mutual fund, but alas, they CAN afford satellite TV, cell phones and a whole host of other dumb "latte factors" that many disciplined self-made millionaires actually go entirely without. And, these total wastes of money actually add up to MORE than 10% of their income! (We do NOT NEED cell phones; we have simply been conditioned by advertising to think that we do.) What they want is a pity party while avoiding the responsibility of their misspending. They won't pay themselves, but they'll sure enough pay T-Mobile and Cox.
  
  On the flipside, and contrary to popular belief, more than 90% of millionaires are self-made. They work normal jobs and simply choose to live below their means. They do not live in extravagant houses, drive older beat-up cars and choose to invest in themselves rather than making someone else rich. This is backed by research on wealth and is not just "my opinion." So how is the current taxation system "unfair?" Well, for starters, the top 50% of income earners pay 97% of all taxes. The top 1% pay 39% of all taxes! For many middle and upper-middle class Americans under the current taxation system, getting a raise often only serves to bump you up into a higher tax bracket. People "getting paid" 60 grand a year "make" MUCH less, and have to work a fourth of the year before they can stop paying the government and start paying themselves. Under the current system many married working couples, unbeknownst to them, often actually lose money by having the wife work. The added childcare costs combined with the fact that the wife's added salary again only bumps the couple up into a higher tax bracket often results in a futile situation. This would no longer be the case if the fair tax gets passed.
  
  
  

• Great Follow up book! If you still don't like the idea after this one then you have problems...

  
  By A2HQDI616TLYWB on 2008-02-12
  I have a degree in economics and I spent almost 7 weeks in college working with the economic effects of tax policy! Fair-Tax is awsome!!!
  
  This is the best book by far on this topic, far better than the first one explaining the entire concept. Just as with anything else in life, if you are to have an educated opinion on anything, you must first fully research the facts revolving around what you want to talk about. Unfortunately this is not what the pundits, critics, and media surrounding the Fair-Tax have done.
  
  95% of people against the Fair-Tax don't fully understand or have not properly researched this topic before opening their mouth. And the other 5% of people against the fair tax are against the Fair-Tax because they want the government to have a vice grip on the America Public and Private sector in some way, shape or form.
  
  What you really need to do, is just to borrow this book, and read the last chapter. I do want Boortz to get #1 on the best seller list, but for those of who do not want to spend the proper time to educate themselves as they should in this matter, should look to the final chapter. This gives a perspective view of what life would be like if you lived under the fair tax. If you read the last chapter and still are in favor of the Federal Income Tax when you are done, you clearly cannot grasp the full benefit of the Fair Tax to yourself, your loved ones, your friends, your company (or your employer), and your country.
  
  I bought about 30 books to give to people when the first book came out, I am sure I will do the same this time.
  
  Andy,
  Atlanta, Georgia
  
  
  

• A necessary, but incomplete, update.

  
  By A2UQK3DAZ8NO2T on 2008-02-26
  This book was a necessary, if for no other reason than to update some errors in the previous book. Not wishing to campaign for or against the fair tax, I'll point out what I think are simple errors by the authors.
  
  Updating their previous work, they addressed the "urban legend" that employees could both keep their entire paycheck, and that prices would drop, on average, 22 percent, virtually offsetting the Fair Tax. They correctly pointed out that Dr. Jorgenson's work about embedded taxes indicated that for prices to drop 22 percent, the employer would retain the Medicare, FICA and federal withholding taxes. In other words, you'd only get your same net pay, not your gross pay. The authors also pointed out they think there will be strong resistance to this; therefore, they predicted a smaller price decrease. They also pointed out that Dr. Jorgenson's estimate of 22 percent decrease was for the producer of finished goods, not necessarily a corresponding 22 percent drop in retail pricing.
  
  It could be pointed out here that the authors, more than anyone else, started this "urban legend", but that would be an error, corrected, from the first book. What they do not do is give us an estimate on how much of the price reduction promised through elimination of embedded taxes was based on these payroll taxes. 10%? 20%? We don't know.
  
  An error in logic that I believe the authors made was in talking about housing. Pointing out that about 3 in 4 homes purchased today are "used", they state, correctly according to the plan, that the Fair Tax would not charged on these purchases. I think their failure is to recognize that the Fair Tax will have a considerable impact on the pricing of homes. A buyer looking at two identical homes, same builder, one new, one a year old. The new home is going for $250,000, Fair Tax embedded in the price. Now do you think the owner of the used one is going to start his price at $192,500, the new value less the Fair Tax? Nope. Buyers will depreciate homes in their own minds (and for that matter, any used item) but will look at total costs, not whether a tax in collected or not. $230,000 is a more likely price.
  
  I also think the authors error when they talk about the current, progressive, income tax rates. On a couple of occasions they state that the average earner falls in the 25% tax bracket. Late in the book, when talk about a fictionalized nation switching from the Fair Tax to our current income tax, they state that "under the grand new scheme", you pay 10% of your earnings on your first $15,600; 15% from there to $63,699; 25%...and so forth. The footnote states this is taken from the 2007 tax schedule for a couple filing jointly. I don't know why they made such a simple error, but they simply didn't take into account that the standard deduction alone is $10,700, and that they'd have at least $6,800 more for two depends (at least). Their first $17,500 won't be taxed at all. The next dollars will then be 10%, and so on.
  
  Errors aside, the general concept of the Fair Tax make it an important read, although you must be ready to wade through a considerable amount of cheerleading to get to the issues.
  
  
  
  
  
• I still have unanswered questions
  By A1EHEHB8LK6EC7 on 2008-02-13
  These issues are from a housewife-who-already-buys-used, not an ivory tower economist, and therefore aren't addressed in this book or on any of the multitudes of web pages regarding FairTax:
  
  1. Depreciation--when as item is going from "new" status to "used" status, how does one calculate the used item market value for such things as yard sales, thrift stores, and auctions? Will FairTax affect the Kelley or NADA value of used cars?
  
  2. Those pesky unseen non-payroll taxes--Are the taxes on cigarettes, gas, booze, and all the various fees, levies, and licenses covered under this plan, or are these taxes going to be raised to cover the FairTax loss difference? What about personal property taxes in some states for cars, computers, and TVs?
  
  3. What is there to stop Congress from raising the FairTax level from 23/30% to somewhere closer to European tax levels of 80-90%?
  
  4. What about gambling, pay phones, pay toilets, vending machines, and lottery tickets? I see a possibility for double-taxation on lottery tickets, gambling, AND the winnings they might produce.
  
  5. Are internet purchases included?
  
  6. What about trade, commerce, and the obviously resulting backlog of new items that will pile up at ports and points of origination (all the way back to the raw materials phase) as a result of all our new-found frugality? With nobody buying new items, where is the incentive to create and produce them?
  
  7. Isn't this just a grand scheme to target our purchases, and a back-door way to federally-forced frugality? What about freedom of choice?
  
  8. Are we going to have to keep track of every purchase we make to determine whether it was bought BEFORE or AFTER the tax plan before we re-sell the items? What about auctions, and thrift stores, food banks, and other "donation-run" organizations who will now have to ask questions of each and every donor before accepting merchandise?
  
  9. How will this tax plan affect employer benefits? Are health insurance premiums and other employer-paid benefits going to go up as a result?
  
  10. How will this plan impact the buying and selling of securities? Will each buy become a taxable event? How does one buy "used" securities to avoid the tax?
  
  The book itself is a good read, but I was looking for answers to questions that may be a little too low-brow for the creators of this plan. I'm going to write to Congressman John Linder of Georgia to see if he can help me out. Writing to Neal Boortz was less than useful--he never responds.
  
  
• FairTax - Boston Tea Party II
  By A3VCK8K8LUGKEB on 2008-02-13
  I ordered 2 copies, finished reading the book a short while ago. I will be ordering more for family and friends just as I did with the first book. The rest is a function of time.
  
  There's nothing really new in the book to anyone who's a FairTax supporter. We've heard all the inane criticisms time and time again, based on biased uninformed drivel and flawed logic. Of course, the critics all seem to be PhD Economists who have run thorough comparative analyses with all proposed tax reforms, but not really. Unfortunately for the critics, the only feasible solution is right smack in their faces, all five fingers. The book does a fantastic job of outlining these criticisms in a very concise methodology, chapter 10 alone was a beast of a rebuttal to the critics. So one must ask why there is so much criticism that a second book had to be written?
  
  The reality is the critics of the FairTax are groups of people who are entrenched in the status quo tax system for their own agendas, whether it's for profit or political tactics, or utilizing the current tax system to shape societal behaviors by awarding agendas they deem appropriate and punishing those they do not.
  
  I believe in time, and perhaps several "flushes" of Congress (sometimes it takes a few to clear out the bowl), we can get the FairTax through and repeal the 16th, all we have to do is vote in supporters and vote AGAINST opponents.
  
  Don't forget to mail the opposition some tea bags along with the book.
  
  
• Useful or not, some more comments
  By A2KAHTLDHKT9GE on 2008-02-14
  First off, I'm actually going to write a review of the book as a book (which is what the section is really for). Then I'll add to the other commentary.
  ***
  I enjoyed this book, just as I did the first FairTax book. It is nice read, and I enjoy Boortz's writing in particular. Probably one of the biggest flaws of the book is the extreme length of what is probably the most important chapter in the book: that is, the chapter that deals with what the authors consider legitimate criticisms to address. Even as an ardent reader and supporter of the FairTax, getting through this chapter was a bit tough. Surely they could have broken it up a bit.
  
  There is nothing abstract in the book. Examples are clear cut and well explained. Having the footnotes in there also really helps, as the authors have highlighted for you, the reader, the same things they read.
  
  All in all, a good read, and highly recommended to both those who support the FairTax and even those who don't. For those that do, this will clear up the major issues, and give you, as the authors say, the ammunition you need to refute some of the claims. For those that don't support the FairTax, you'll have a better understanding of your enemy's idea.
  ***
  
  
  Boortz and Linder "ignore" the reviews by various organizations that alter the FairTax in some way. In other words, these organizations established guidelines for their reviews of proposed tax plans that change how the FairTax would work. Imagine it like this: an independent organization is going to rate every car on the road in terms of safety features, but in their guidelines, they state that solid steel bars running down the sides of a car shouldn't be considered. My car, and all the others like it, take a hit in those safety ratings. Why? Because someone decided to cut out an important feature.
  
  The FairTax only deals with Federal income taxes. Excise taxes, such as those levied on alcohol and tobacco, will likely still be there. Asides from almost always being state mandated taxes, excise taxes are exclusive (that is, they are not reflected in the price you see at the counter; you see it only after it is added at the register). Any tax levied by a state, whether it be on income or your various property and licenses, is still valid. The FairTax does not deal with the 50 individual states and taxes they choose to levy.
  
  The thing that will stop Congress from raising the tax rate is the collective displeasure of the American people. Right now, tax increases (when they do occur) often only impact the rich because the current tax code allows politicians to selective target groups with tax breaks and increases. Implement the FairTax, and everyone is paying the same rate (though, as I'll address soon, not the same amount); now Congress would be trying to raise the tax burden of every American. That's a sure fire way to find yourself booted out of office.
  
  Pay as you use items (phones, vending machines, etc) already have embedded taxes factored into the cost of each item. Gambling and lottery winnings get double taxed already: first upon receipt of them (they are a form of income) and then when you spend them (those nice embedded taxes again). Ditto for internet purchases. I purchased my copy of this book off of this website. Rather than drive to a bookstore, I chose to make the retail purchase online: all the embedded taxes that the FairTax would replace are still there.
  
  I admit I'm surprised at the number of people who argue that the FairTax would drive people into a "used" buying frenzy, including things like used gasoline (not sure how that one works, though), and say that is a bad thing. Is it a bad thing for you to save your money by buying used? That's money you can invest, or save to send your kid to college. I work in retail, and people have a voracious appetite for new things, even if they aren't always necessary. Kids want new toys (video games). How many women want to buy used cosmetics? Your favorite author puts out a new book: are you going to wait to try and find it used? Yeah, some people might, but overall,
  
  Now, the FairTax has everyone pay the same rate: 23% (AND REMEMBER, THAT COST IS ALREADY THERE under the current system as companies are just passing their tax burden onto the consumer). There is no difference in a millionaire buying a mop for his maid to use and the stay at home mom who will buy the same mop for herself: they both pay 23%. I've often thought, however, that the class warfare folks should be jumping on the FairTax bandwagon, and here's why:
  
  Ask yourself, who is more likely to buy a new car: the rich guy, or the middle class guy? Who is buying a personal sailing yacht? Rich people will get shafted under the FairTax, even as they are now, but at least now, they will have a choice in the matter. Poor people will see a rise in their bring home income, the prebate to cover necessities, and little or no change in overall prices (with embedded taxes gone, some prices go up, others go down, and some stay where they are. Even those that would change would not change much).
  
  Oh, and one final thing. I've heard it said, and seen it here, that one reason not to support their FairTax is simply because of whom some of the proponents are. Well, first off, the movement is big, and growing, and it includes plenty of normal, everday Americans. Not giving the FairTax any thought because you don't like Boortz and/or Linder is stupid. It reminds me of the comment I heard back in 2000. A friend of mine, rather conservative himself, stated he wasn't going to vote for George W. Bush because we already had one president with the last name Bush. That was his sole reason.
  
  Is that not moronic? I mean, it is one thing to disagree with candidates, and to vote against them because of that. It is a similar, though admittedly not identical, situation here. Boortz and Linder may not be your favorite people in the world, but they are carrying a message. Judge the message for itself, not based on who carries it.
  
  
• FairTax, The Truth - Taking Politicians Boot Off Taxpayers Neck
  By A10O0NTPH4U7NG on 2008-02-12
  FairTax, The Truth, Answering The Critics provides an excellent, comprehensive, and easy to read discussion of the details of the FairTax plan that if enacted would revolutionize the way the American economy works in an extremely positive way. The book thoroughly rebuts mainstream media critics and in fact makes them look uninformed and foolish. Particularly good explanations are given about inclusive/exclusive taxes, how the tax base is actually broadened, how the consumption tax base is more reliable than the income tax base, and how taxes expand for the rich and decrease for the poor. The last fact is especially true since the Social Security Tax is the most regressive tax, falls heaviest on the poor and is eliminated with the FairTax. Don't believe this reviewer then see additionally, the papers of PhD economists like Lawrence Kotlikoff (Why The FairTax Will Work, January 9, 2008) or other works at the National Bureau of Economic Research. America is being bankrupted by the political and monetarist elites. This book gives one the ammunition to argue with politicians and critics that the FairTax is the best solution to America's broken and frankly harmful tax code. Get it and act upon it! And buy additional copies and pass them on to your "doubting" friends.
  
  
• Easy to read, even democrats will be able to understand!
  By AEUGBWS52UGGX on 2008-02-14
  Though a paperback and seemingly too small to be all inclusive, amazingly it answears all the questions anyone could have! I'm glad it spells out so many mis-conceptions. Now I'm waiting to hear any uneducated complaints from those who haven"t read it.....
  
  
• Read the subject material then formulate an opinion.....
  By A1AQ8D3T7ZBMHH on 2008-02-14
  I can only ponder back to the good Doctors posting in reading some of the criticisms drawn out by a small minority that seem to have nothing more than a personal axe to grind with a particular "talk show" host. "The straw man fallacy: to attack a caricature of a position instead of the position itself. Such an argument is fallacious because a refutation of a caricature can never be more than a caricature of a refutation".
  
  My action: I purchased one book for myself and then the double package (first & second book) which puts me into the free shipping mode, these I will donate as a new set to my local public library. (North Fulton County)
  
  People need to read these and become involved, as I believe they will upon discerning the basic fundamentals of the fair tax in its designed form, and thus, what it will mean to each individual citizen.
  
  Hey it's a free read in the North Fulton Library starting next week, so knock yourselves out.
  
  
  
• Solidified My View
  By A1OINP68RYOKAF on 2008-02-14
  After reading The FairTax Book by the same authors, I thought that the FairTax would be a great alternative to our current tax system. However, I did have questions arise about some of the plans that the FairTax covers. This new book answered all of my questions and even gave me some information to throw out to people when I'm talking about the FairTax. If you are reading this, you owe it to yourself and country to purchase this book. This book on the bestsellers will show Washington what we American people think of our current system.Thank You Mr. Boortz and Mr. Linder for shedding light on this subject!
  
  
• The Best Answers Money Can Buy
  By A2IQF4WLE0A68C on 2008-02-14
  It appears answering the critics amounts to having The Americans for Fair Taxation pay economists to write papers that validate the FairTax. Then Boortz can say "noted economists have confirmed/studied/concluded/etc..." as an answer to any legitimate question.
  
  
• Want to save the USA, pass the FairTax now!!!
  By A2KQIBQFI1N58X on 2008-02-15
  After reading this book you will ask yourself, why hasn't Washington passed this plan! If our elected officials and soon to be elected officials truly care about the people, the country, and really want to change things for the better, what then is the possible reason the FairTax has not been passed? This plan is amazing and the most fair for all people, not to mention the most researched tax plan out there. Plus, best of all, it gets the government nose out of our personal lives. No IRS should be music to everyone's ears.
  
  
• Fair Tax = the only viable solution to the tax mess
  By A1R6EJWF4WJXQG on 2008-02-18
  Run, don't walk, to the nearest politician and demand that s/he actively support (i.e. co-sponsor the bill SB 25), vote for, and works to ensure passage of the FairTax.
  
  If you believe that hard work and thrift should be rewarded, yet still have enough of a heart to want to give those living under the poverty level a break, then this is the ONLY plan that accomplishes those goals. Before we drown under the mountain of debt created by all the entitlement plans, I'd love to see this pass so we have a prayer of leaving a country for my children in which they might actually get to keep a dollar or two that they earn before the government confiscates it all.
  
  Plus - who doesn't love any plan that removes so much power from DC and puts it back in our hands - bravo and thanks to Congressman Linder and Neal Boortz for taking time out of their busy lives to help make this a reality.
  
  
• WELL DONE AGAIN!
  By A2SU4WSHVJMHAG on 2008-02-19
  Boortz and Linder (and this time Woodall) have taken a fresh approach and addressed the complaints they have heard about the FairTax. This writing is open, clear and straightforward. It can be read alone, or with the first book, the FairTax Book. I recommend this book for everyone who is willing to take a serious look at our current tax code, and the best way to collect the revenues required by our federal government.
  For those who, after informing themselves, are proponents of the current system, this book offers a knowledge base so we can have a civil interchange, rather than the traditional uninformed mudslinging and name calling that usually surround tax policy. I recommend this to everyone. I want to know if the people I know have better ideas than the current HR25, and if they do, we will undertake to get the best new federal tax system implemented. This book is a great foundation for that exploration.
  
  
• The Fair Tax
  By A369XPXR47NQPZ on 2008-02-17
  Glad to have a sequel, filled in some blanks on certain questions I had, but did not know how to "Phrase my questions" to get the correct answers.
  
  First book won me over with it's straight shooting, common sense approach. The Second book merely supported what the first had done. Which is explain how the current tax system works, why its broke, and then give a solution.
  A lot of people can point out broken things, but it's a lot harder to come up with a solution that is good, solid, through and through, and makes sense on such a broad plain.
  
  I give it 5 Stars! Nothings perfect, but this sure is a few steps in the correct direction and I whole heartedly support it for the future of a successful USA.
  
  This can happen, but it's up to you, and myself along with everyone else.
  
  I'm not really a big talker, so I supported it in the only way I could, which was by donating a few dollars to fairtax.org (Anybody that knows anything knows that any organization needs financial support!) Even sent a couple letters to my Congressman. ( Doing what I can)
  
  I hope others educate themselves on this great plan and also support it for, what can be a better tomorrow.
  
  
• A must read. PERIOD
  By A1542LFE4F18JE on 2008-02-25
  Just look at the reviews who give it one star. Claiming lots of attorneys and IRS employees will loose thier jobs. Basically the reviewers are saying, ME,ME, ME. What about being fair? This book sums it up in one simple go. So some attonerys will loose there jobs. Some IRS employees. What about the small businesses who have been put out of business by the IRS in error. Or the small business owners (2007 it was 23)who were so stressed out by IRS audits that they killed themselves. 15 of those had done nothing wrong. It will save the planet as we dont need to keep copies and tons of paper.
  
  
• simple concept with amazingly complex implications
  By A3VO6FY9413NE5 on 2008-02-20
  Neal Boortz & John Linder do a remarkable job in hammering down the concepts of the FairTax in this follow up book.
  
  The initial FairTax book was a great primer however, it made assumptions in terms of the reader grasping the implications of the change. This book takes a step back and dwelves into what will happen in concrete terms.
  
  If you have the misconception that the FairTax, is simply a sales tax, you really need to learn more. The main difference from other Tax plans being batted around it that it also includes Payroll Taxes (FICA & Medicare). Those are the most regressive taxes we pay and also the largest most people will pay. Another point to differentiate it from say the Flat Tax is that it is conditional on repeal of the 16th amendment. Without that condition, the government could keep the income tax on top of it.
  
  I urge you to buy this book. Read it cover to cover and then hand it off. For this plan to become more than some nice words, many more people are going to need to get behind it and make support of the FairTax a condition for there Representatives keeping their jobs. In the area I live, that's the case. All of them below the President are behind the FairTax. So it's time for me to hit a new area.
  
  This is a truly transformative plan that we can continue to refine. However, the principals that form the foundation need to be acted on to get America (and the world) moving forward.
  
  
• No way, no how
  By A2SAFPZCEZ5D8I on 2008-02-24
  The Fair Tax idea expounded by these authors sounds great in theory. But, as financial adviser and columnist Malcolm Berko pointed out in a recent column, the IRS employs 123,000 people, there are 694,000 CPAs, 2.7 million accountants and some 1.6 million lawyers in this country, all of whom owe their living in whole or part to the present tax system. All these people have mortgages, credit cards and car payments and they have a very significant voice in congress. If you think Congress is going to put all these people out of work all I can say is dream on.
  
  
• FairTax
  By A6UJPO7JPQ3A6 on 2008-03-21
  The author(s) are dreamers. Lots of questions in each chapter, as if uncertain of their idea. Though consumption taxes are prevalent overseas, and sales taxes are common in 41 states?, for the overall government tax on individuals, I do not believe in the authors claims. In addition, it was dry reading. Boring.
  
  This book was not written well; it assumed you had read their first book (I had not)and there were few examples and those examples given were poorly done. I wanted to see given examples: Comparing the present tax (show a farmer's Schedule F, an accountants Schedule C, a landlords Schedule E, etc.) with their presentation. It wasn't there for me.
  
  Still, they wrote it. Heaven forbid if Congress enates this tax!
  
  
  
  
• Total Obfuscation
  By AWCO9OU6AZJ21 on 2008-02-21
  Boortz and Linder obfuscate about the core reason for the 'Fair' Tax. Nowhere in this book or the first do the authors mention the elimination of all obligatory taxes the wealthy should pay for their benefit of living in this United States, which allowed them good fortune and gave them the infrastructure of laws and materials to accumulate their riches. The USA was founded to escape the tyranny of aristocracy and plutocracy; now Boortz and Linder are conning their dupes, by the FT, into believing a New World is just over the hill if only federal obligatory taxes are eliminated. They don't mention the rapid rate of wealth accumulation by the already rich, desired by the original instigators, will be a disaster to our republic.
  
  They don't mention that the widening wealth gap will be accelerated until the USA becomes another plutocracy like the South and Central American countries that are governed by the masters over their serfs.
  
  
• Great Service!
  By A8PEFY81WPF7R on 2008-04-08
  Great book! This book rebukes the nay-sayers about the "FairTax". It will truly revolutionalize our broken taxation system.
  
  
• Excellent book.
  By AZ3OSPBK8TH04 on 2008-02-19
  This is a must read if you support the fair tax plan or want to educate yourself on the subject. jk
  
  
• Excellent and Thorough
  By A1X245PWEFPOKC on 2008-02-21
  The new FairTax book, FairTax: The Truth, certainly lives up to its name. I'll spare readers from one of those long rambling comments that I have already seen regarding this book and just list some bullets:
  
  -A brief history of how the FairTax was "invented" is recounted (this also shows how Bartlett is on crack when it comes to the scientology stuff).
  -The goals of the economists who crafted the FairTax are listed and thoroughly explained WITH citations.
  -It goes rather in depth on the economic impacts of the FairTax WITH citations.
  -The authors spend a significant portion of the book taking the most common criticisms of the FairTax and use economic theory and history (gasp) to correct them -- oh right, WITH citations.
  -The appendix presents a detailed review of the White House tax panel and its conclusions.
  
  That about covers it. Oh, I should also mention that repeatedly throughout the book the authors plead for constructive criticism so that they can further improve the FairTax. I also want to reiterate that in this book the authors use CITATIONS of peer-reviewed scholarly articles and government data, which is something I have yet to see done by a FairTax critic.
  
  I am fully convinced that if anyone reads both the FairTax books with an open mind and without prejudice, that person will become a whole-hearted supporter of the FairTax.
  
  
  
• Every American taxpayer should read this book
  By A14O6GO89QDL00 on 2008-02-21
  
  
  There was one chapter that presented a great reversal comparison.
  
  It went something like this. Let's assume the federal government is currently being funded by the FairTax system and there is a bill being presented to congress that would replace the FairTax with a system incorporating an income tax, a payroll tax, a corporate tax, and an estate tax. How do you think Americans would respond to the following? The new tax bill is designed to give power back to government where it belongs. It will no longer be transparent. The government will be able to raise taxes by manipulate the code without you realizing it. Lobbyists will have the opportunity to convince congress to change the code to benefit their special interest. Within a few years the code will be so complicated, no one will completely understand it. You will no longer receive 100% of your paycheck. The government will keep their share before you have a chance to spend it and if you need to take on a second job to fill your family needs, the government will keep a larger up-front percentage. Since you no longer will be paying a consumption tax, you will no longer receive your monthly prebate check. In order for corporations to show a profit, corporate taxes and compliance costs will now be added to the cost of goods and services, but after eliminating the 23% consumption tax and adding back 22% to cover compliance costs and corporate taxes, prices will be reduced by at least 1%. No longer will the earnings from your savings and investments be free from tax; no longer will the money you spend on education be tax free, you will be using after tax dollars for these purposes. Trillions of dollars will leave the American economy to work in foreign markets but you will be able to purchase Chinese products for less than American made products. You will now have a death tax. When you die, your family will have to file a complicated estate tax return. A huge amount of the wealth you've managed to build during your life will be sent to the government. On April 15th of each year, you will be required to file a complicated tax return. To support your figures, you will be required to keep records of all your financial transactions. Not everyone will be treated equal on these returns. There will be many loopholes which will protect mainly wealthy Americans. Taxpayers who aren't able to take advantage of these loopholes will be required to make up the difference. A huge portion of your tax dollars will be used to support a new federal department which will be called the IRS. This organization will try to catch cheats by auditing approximately 1% of these returns. Many Americans will take a chance on being audited; they will either not file a return or they will cheat on the ones they do file. All honest Americans will be required to make up the lost revenue. And here is the best part; illegal aliens, drug dealers and tourists will no longer be paying taxes. Again, you will be required to make up for this loss. Let me ask any opponent of the FairTax; would you support this new tax proposal?
  
  
  
• The FairTax is not perfect, but close
  By A2NTY0CORU6JHS on 2008-02-23
  For some reason, critics of the FairTax (or any other proposed taxing system) insist that it be perfect. And if the new system is not perfect, then don't replace the broken income tax system we have now. That is pretty much like saying you can't buy a new fuel-efficient, safer car because it's not perfect. Keep your old car instead...the one that belches smoke, gets 7 mpg, and costs a fortune to keep running.
  
  The United States will never have a perfect tax system. That point is made clear in the book. But doing nothing while waiting for the perfect system that critics crave will lead to a bankrupt nation. The numbers and trends don't lie.
  
  Critics also fail to comment on our broken entitlement systems (Social Security, Medicare, Medicaid). That's because the FairTax provides true reform that does not depend on the wages of the average working Joe. Everyone, tourists and illegal immigrants included, will get to particpate in making those systems solvent.
  
  Hmmmm, I wonder if the critics have an agenda that is not in the best interest of working Americans? Yep, that's covered in the book, too.
  
  
• A good concept twisted to favor the wealthy
  By AK2NTWE7SB15W on 2008-04-03
  The FairTax just might work, but the extreme right-wing authors have added a loop-hole for the wealthy: the purchase of existing homes is exempt from the FairTax. If someone earns $30,000,000 and buys a $30,000,000 mega-mansion with it, not one penny of that money goes to help the American people. They may then purchase a $10,000,000 beach-front vacation property and go tax-free again.
  
  Some might argue that people of all incomes may enjoy this benefit. But there's a big difference between a working class family buying a small home because they need shelter and a multi-millionaire buying a luxurious mansion for recreational and show-off-to-the-world purposes.
  
  Others might argue that a real estate purchase is an investment, but it's really the purchase of an enjoyable commodity that happens to appreciate because population grows while supply of land does not. It's nothing like a capital investment which benefits the economy and brings money to America.
  
  For the FairTax to be fair, exemptions like this one must be eliminated.
  
  Also, the authors fail to address the fact that Americans, who will do anything to avoid paying taxes, will seek to spend money outside the U.S. in order to avoid the FairTax. The wealthy already spend a lot of money abroad. This behavior will decrease tax revenue and export America's wealth.
  
  Worse yet, the authors of this book promote the great Republican lie that good, hard-working people get rich and that everyone else is stupid and lazy. On p. 215, they make a reference to the "rich", and follow it with the statement, "If you work hard, that means you." That's funny, I know people who work 60-70 hours per week and struggle to provide basics for their families. According to the authors, they should be rich.
  
  Overall, the FairTax is an idea worth studying, but beware of the one-sided, pro-upper class arguments of its creators. Someone in touch with working class America needs make adjustments to the FairTax so that it's actually fair.
  
  
  
• Not well written
  By A1RLOCSS7K3QMK on 2008-04-08
  I don't recommend this book for those just trying to learn about the fair tax. Too often, the author will raise an issue that is important to the reader, and then move on without actually addressing the issue. If you have questions you need answered before you can buy into the fair tax, this is not a good choice. Frequently, the book seemed to be more about blowing smoke then providing a clear, reasonable, and coherent argument.
  
  
• FAIRTAX THE TRUTH
  By AUQCESC9Z0M4J on 2008-04-08
  A well researched tool for those who feel that we desperately need to revolutionize our US tax policy. Those who love thier country will be inspired to share the vision of this movement and to get involved in some personal way toward implementing it.
  - Hugh E. Nichols
  Daleville, Virginia
  
  

• The FairTax Book: Saying Goodbye to the Income Tax and the IRS
• Somebody's Gotta Say It
• Real Change: From the World That Fails to the World That Works
• Younger Next Year: Live Strong, Fit, and Sexy—Until You're 80 and Beyond
• Liberal Fascism: The Secret History of the American Left, From Mussolini to the Politics of Meaning