Neal Boortz & John Linder about Tax Book - Essay Example

Running head: Fair Tax Book Fair Tax Book by Neal Boortz s Fair Tax Book by Neal Boortz & John Linder The Fair Tax Book is a 208 page book published in 2005 by Regan Books. Written by Neal Boortz and Congressman John Linder it accompanied the Fair Tax Act of 2005; a bill demanding change in the current tax laws in the United States of America. The book garnered great interest in that it served to educated the people of the United States about the tax laws and give them an idea of what to expect with the new amendments being wrought in the system. The Fair Tax Book is primarily a way to defend the "Fair Tax" movement. This movement is established on the scheme regarding a change in the way Americans pay taxes. Neal Boortz and John Linder believe that most of the federal taxes, including Social Security and payroll taxes, need to be scrapped out and should be substituted with a consumption tax on the purchase of retail goods and services. The book goes a long way in making a case about the benefits of introducing such a plan and how it would deem best for the American public. The authors believe that under the Fair Tax system, economic growth would be more rapid as compared to the current system. One of the major areas on interests discussed in the book is the relationship between the Fair Tax code and the international economy. The book details the various impacts that could result with consideration to the growth of international economy. This is of vital importance since much of the domestic American trade is dependent on international trade – something that is in turn dependent on the international political environment. A key feature is the way The Free Tax Book is able to address economic issues with regard to every member of the American society. The book is not just aimed for the middle and upper classes; rather it effectively incorporates within its reading audience, agriculturalists, ranchers, traders and labourers. An estimate is that the average American would be paying around thirty cents per dollar in taxation as compared to fifty cents per dollar if the Fair Tax system is implemented in place of the current taxation system. This would prove to be a great source of renewed savings for poorer families. The Fair Tax system is of the view that farmers and ranchers should be able to purchase agricultural items free of taxation. It also contends for the removal of payroll taxation and federal taxation. Both sound good to the common man who has way too many taxes to deal with in his lifetime. An entire chapter in the book is committed to explaining how Medicare and Social Security would work under the Fair Tax system. The book is of the view that since the Fair Tax system would take the place of the present payroll taxation system the current tax base would widen. This is indicative of a stronger economy resulting in the expansion of the economy. The book is looking for a means to simplify the current tax code and for this various issues are talked about and weighed to check their pros and cons in order to decide. These issues are very close to the average American and are important for a better understanding of the economy. The book is cleverly written to appeal to the masses; it has the elements of both a radio talk show and that of a political documentary with facts and figures to prove the debate legitimate. It proves to be an easy enough reading experience that allows the layman to understand certain complex political systems. Moreover it employs the everyday lingo in order to get the message across by widening its audience. The book’s proponents believe that the current tax code (at the time of the book’s publication) was a mess. The Fair Tax system is then seen as a welcoming change. They feel that the current taxation system needs to undergo fundamental reform in order to provide a relevant working model for the public. What the proponents feel is missing in the current taxation system is the way taxes are levied on people. They believe taxation should be consumption based rather than income based. This is to say that people should be taxed according to the services they consume and how they spend their money rather than what they earn for a living. There are many economic falsifications that form part of the current taxation system; Fair Tax system aims to remove those distortions and instead try to bridge the various gaps that appear between the payment of taxation and how those taxes end up. Instead of paying taxes in various forms and methods, the Fair Tax system is focusing on making it easier for tax payers to pay their taxes once instead of going through a routine. The Fair Tax system also proposes a plan by which Americans would not have to pay taxation on necessities. Critics, however, do not entirely hold true the findings and research presented in the book and declare the substance ineffective. They contend that the book over glorifies the possibilities that can be achieved with the implementation of the Fair Tax system. Some critics believe there is a serious flaw in the book; they blame the authors for not coming clean about what the Fair Tax system would mean for regular day workers. If pre-tax prices are to fall so fast that people would no longer need to pay the current number of taxes; something else must be in the works. According to critics, for the Fair Tax system to work properly, workers that are part of companies and multinationals would turn out to be the losers. This is because their wages would need to be reduced in order for the system to work the way the authors envision it and claim it to be. (Regnier, 2005) If this is true, then everything is not as perfect as the book makes it out to be. In fact, even though the employees would be in full possession of their pay checks, that pay check in itself would be smaller than what they had been earning earlier. As mentioned before, the system will only function properly when there is a reduction in wages paid to company employees. The Fair Tax Book is a great marketing gimmick as well as a means to educate the average American about possible policy changes in the tax system. It is smart thinking to involve the public in future economically linked changes that would in turn affect them, through the popular medium of books. This move has allowed citizens to become politically and economically aware of what they are dealing with and what they might have to face in the future. The arguments presented in the Fair Tax Book are logically sound and provide a good backdrop of the current taxation system. Sometimes, the reader might feel that the authors are making wild claims that may hold no truth, however, mostly; the book provides factual evidence to what it claims and then proposes as a replacement. This enhances the appeal of the book with its reading public and proves vital for its success in both in the international as well as the market. It should be noted that The Fair Tax Book does not aim to provide a magic wand with solutions to the current economic crisis. Rather it provides the outlook of an economy that is healthier and enhanced to accommodate the consumption patterns of the American public. Works Cited Regnier, P. (2005). Money Finds Flaw in "Fair Tax" Bestseller. Money Magazine , 14-17. 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