An Economic Analysis Of The Fairtax Book

An Economic Analysis of The FairTax Book

Introduction

The Fair Tax Book is a nonfiction book written by Neal Boortz with Congressman John Linder. The book introduces a new tax system by eliminating income tax and the IRS. The purpose of the book is to raise awareness, increase public support, and help others understanding of the FairTax plan. The Americans for Fair Taxation (AFFT) group was created to develop a system that would raise the same quantity of profits for the federal government that the current income tax system does and could also be less unpleasant. The AFFT achieved this by soliciting proposals from major universities for research including polls to understand what American citizens wanted. The FairTax Book uses economic concepts

The system, determined by the polls and focus groups, included a method of taxation that would be voluntary and citizens would pay what and when they choose by how they chose to spend their money. This system, or the FairTax, was a national sales tax on goods and services sold at retail to consumers, which includes all unused items. This tax system would replace the Internal Revenue Service (IRS) and all income taxes and citizens would be required to pay an embedded personal consumption tax of twenty-three percent rather than the current twenty-two percent embedded tax (Boortz, Linder p.76). The FairTax Book effectively describes the United States’ current tax system as well as the benefits of the FairTax system. However, in order to determine if the FairTax system would be beneficial within the United States’ economy, it is necessary to first understand the effects on prices of goods and

I truly agree with Neal Boortz and John Linder in the overall effectiveness of the tax system. The FairTax Book is exceptional at explaining the proposed tax system by organizing information to make it easier for individuals to understand the United States’ current tax system and the proposing FairTax system. By explaining the current tax system in terms most citizens can understand, I believe they are allowing for understanding of where their money is going to. With this new tax, I agree that the United States’ economy as well as my personal income and consumption will increase. The FarTax Book should be read by everyone, even if the proposed tax system is not agreed by everyone. It is important to understand our current laws and systems in order to tell the government what we want from them. However, one question I have about the FairTax would be if it is so great, why has not been implemented already? In The FairTax Book, the authors are persuading their readers to agree with the tax system. I had desired, however, that the book would have ideas of those against the system and those for the system. This would give readers the opportunity to understand benefits and issues of the FairTax and allow them to make a decision to support it or not. Overall, The FairTax Book successfully explained the FairTax system and I believe the tax system would be beneficial to the United States’