Questions for "The FairTax Book"

1) Describe the overall purpose of the book as it is addressed early in chapter 1.

2) Chapter 1 discusses the history of the income tax. How was the government of the United States funded early in the history of the republic?

3) What was the act to reduce taxation in 1894 about and what happened to it?

4) What did the 1894 ultimately lead to?

5) Discuss the early history of the income tax withholding. Was there always a withholding?

6) How did World War II affect income tax withholding?

7) From chapter 3 the authors claim that corporations do not pay income tax. Please describe how this is so.

8) For an individual how many hours on average is spent on compliance?

9) Some individuals choose not to take advantage of all deductions for income taxes. Why so?

10) What are 3 separate tax compliance costs the authors listed?

11) What is meant by the embedded cost of the tax code? Please explain in detail along with the percentage amount.

12) The FairTax is explained in Chapter 8. Please describe in your own words what the Fairtax is and how it would work.

13) What is the percent that is suggested for the Fairtax?

14) What are the advantages that the book puts forth on adopting a Fairtax in place of income taxes? There are many listed.

15) How are Social Security and Medicare affected under the plan?

16) Please share your thoughts on the plan (no right or wrong answer here).