Rating: 
Summary: A very powerfull and troubling book
Review: The book provides an incendiary glimpse into the inequities of the US tax code. Johnston shows how incredibly flawed and unfair the tax code has become. He shows how changes have shifted the burden from the wealthy to middle class and how important this issue is to all Americans. And yes he is actually a Republican.
Rating: 
Summary: David Cay Johnson's Bias
Review: Many have criticized this book for being anti-GOP. Just a note for you, Mr. Johnson is a registered Republican. However, he reserves the right to criticize both parties and will not blindly follow the party line like many Americans do.The book is fairly objective. No matter what side of the political spectrum (or the $87,000 S.S. cutoff line) you are, you will enjoy this investigation into what's wrong with our Social Security system and why a lockbox or any other panaceas will not save us! FYI: I am an independent but a conservative ideologically.
Rating: 
Summary: if you make between $50k and $500K you are getting shafted
Review: If you would like to learn some more about problems with the
tax code this book is for you. Basic summary:
if you make between $50k and $500K you are getting shafted
to enable huge tax cuts for super millionaires. Bill
Rating:
Summary: A subject that touches us all
Review: I don't pretend to understand the tax system; it seems to me that most tax lawyers, accountants, and IRS employees don't understand it, but Mr. Johnston, who after all won a Pulitzer Prize based on his journalistic work in this field, certainly does. As he's said, he "does the work" for the reader. His research through what I can only imagine was immensely compliated, boring, difficult reports, statistics, and tax codes has been neatly codified into a book as engaging as it is informative. What might in other hands have been mere anecdotes become the tools with which he allows the reader to comprehend the gaping flaws in our system.
Many financial and current events books are either so mired in facts without context that they are simply unreadable or so lacking in deep understanding of the subject that they are unfinishable. This book is neither; it is polished, precise, and nearly poetic in parts. Indeed, the writing and obvious comprehension in this work inspired me to find a used copy of Johnston's first book, _Temples of Chance_, and to get a weekend subscription to the Times. I saw this work on their Bestseller list the day I received my second copy - it was number 9 - and I'm not in the least surprised. This is a books that deserves and demands a grand readership, and I am sure it will soon have one.
Rating:
Summary: How the Tax Laws are Rigged Against You
Review: The author is an investigative reporter who spent the last decade uncovering the tax scams of the super-rich. Both political parties (like a wrestling tag-team) alternate in taxing the many to benefit the super-rich. This recalls the aristocracy of the 18th century Europe who paid no taxes but received the benefits of government. Our tax system subsidizes the rich by taxing everyone else to pay for it (p.2)! Johnston claims that "apathy" causes people to be uninformed about public issues, or don't even vote. Actually the political propaganda in everyday life, like advertising, is designed to create this "apathy", or fear of questioning authority. The educational system also conditions people to "official history" and credulity. Page 7 explains the "charitable trust" racket to money-launder assets like stock or buildings to get 96% of your money tax-free! "The U.S. tax code is the most political law in the world" said an expert. Taxation reflects policy; taxing the poor limits their ability to improve their life (p.10). Wage earners have a harsh set of rules unlike business owners. Tax policy since 1981 created the most highly concentrated wealth since 1929. The richest 1% are taxed more lightly than the middle class (p.11). Page 12 explains the "intellectual property" scam to lower taxes. Ever-tougher rules restrict union organizing. New rules allow trusts perpetual life and eliminate the estate tax. "Limited liability" corporations enabled corporate cheating since 1991 (p.13). These issues are under-reported because they're not 'fit to print'. Talk of the top 1% earning 21% of income but paying 37% of taxes is a created statistic like in advertising (p.15); the truth is on page 16. The 1997 reduced tax rate on long-term capital gains is a major tax break for the rich. Originally capital gains were taxed higher than wages on moral grounds (p.17). The tax scams began in 1983 when Social Security taxes were raised, changing it from pay-as-you-go to create a trust fund to pay benefits over 30 years. But this money was used to pay for tax cuts for the super rich (p.18)! Whether Democrats or Republicans, the tax cuts for the super rich were financed by higher taxes for everyone else. This tax system is creating fewer stable jobs and lesser retirement incomes. Chapters 2 to 20 cover various related topics. Chapter 21 explains the problem: the richest man in Congress is in charge of the IRS Oversight Subcommittee. He knows of no problems in tax cheating; 'hear no evil, see no evil, hold no hearings' (p.293). The IRS can't investigate rich tax cheats if there's no money in their budget for this! Or if they're forbidden to gather needed data (p.295). Business owners can legally report a lesser income (p.297). The "Contract With America" promised a fairer, simpler tax system, but resulted in 293 major changes (p.299). Johnston tells what is wrong with a national sales tax (p.300), and the "flat tax" (pp.300-309). Is reform possible with the current batch of crooked politicians? Not without an aroused voting populace. Johnston concludes that our tax system needs a complete overhaul (p.305). Taxes have been cut for the rich by raising them on the middle income (higher Social Security taxes than needed, and the alternative minimum tax). Congress needs to pass laws to report all income immediately and pay taxes on it. You can't believe the "courtesans of wealth" on broadcast media (p.306). Most Americans can't save because of their regressive taxes. A society top-heavy with wealth is an unstable society. Page 308 explains the tax burden. The cure is a simplified tax code (pp.312-316). Economic equality creates prosperity; poverty occurs when only the rich have money. What do you want?
Rating:
Summary: Awareness
Review: From the endorsements and some of the other "assessments" of this book I expeceted a screed. But it is not that; this is a primer for awareness of the "tax"-onomy of US taxes, tax collection, tax shelters, and the situation of the IRS. "Perfectly Legal" almost becomes technical at times -- but just when one thinks, "A flowchart would help here," another chapter has started. In sum, it's just technical enough -- after all, I am not trying to understand the tax code. And awareness is step one. Right? The portion of the book on remaking the IRS to be more like a business is its most interesting part. Johnston implies that if the IRS was truly run like a business, quite a few additional collections might have been made. The tiger would purr and smile at his good customers, but he'd also have better teeth. And so we read between the lines that the attempt to revamp has been aborted. One wonders why, and the answer, Johnston repeats, is political (he refers to a "political donor class"). Mr. Johnston, commendably, leaves ideology out of it. The reason this is commendable is because I'm pretty sure no straight mapping from tax evasion to ideology exists. Oliver Warbucks paid his taxes, remember. The book doesn't cover (very much) those folks who believe they shouldn't pay tax, and mostly just talks about people who in fact don't pay tax (whatever their reasoning), or, more accurately, pay less than you'd expect. But I'm a little curious why one would fancy himself not subject to taxation. What are the underpinnings of such a belief? Johnston hints at some (broken government promises for mules and acreage, for instance), but he never really lays it out. And this is too bad, because he has some dire yet refreshing things to say near the end about tax anomie and lawlessness in general. Pronouncements that would be more convincing had he not made such an effort to avoid ideology. The five stars are bestowed because it's timely, relavent, and worth reading. It's also "safe" for both red staters and latte sippers in this age of mindset censorship. And it's an important topic, so enjoy, it, please. But the definitive work on "taxing" has been as yet undiscovered by me.
Rating:
Summary: A libertarian reviews Perfectly Legal
Review: This is a fantastic book that highlights the shortcomings of the American tax system. Though the author is clearly a Democrat or "Progressive" this book is a fair assessment of the most unfair tax system ever created. The tax system is the most politicized law in the land. As a result, people with wealth and access to politicians have perverted the tax code to benefit themselves at the expense of all other Americans. For those of you making the "the top 50% pay 96% of federal taxes" argument you have it correct but you are lying due to an omission of fact. The income tax is only a portion of the government's revenues and that when all federal charges are considered as a whole the tax burden is (more and more) falling disproportionally on those with the least amount of money. I have now finished reading this book and the ending is a bit of a let-down, yet not enough to deny the rating of five stars. The let down is that as it stands, the tax system is effectively a flat tax system. So then what is all the fuss about? How about: when corrected for inflation per-capita income has slipped ever so slightly since 1970 for the majority of people whereas the higher your income goes, the faster income has grown. No the world is not a fair place but neither is it an unfair place. It is what we make of it. If America wants to continue down the yellow-brick road it has been travelling along, we will need to remake its tax system from the bottom-up because the game we are playing right now is rigged.
Rating:
Summary: Deception from an author with an ax to grind.
Review: I have practiced income tax for 30 years and I was curious to find out what Mr Johnston book "Perfectly Legal" was talking about. After reading the book my conclusion is that his book was a waste of my time and money. Although sprinkled with truth here and there, he presents exceptions, and pretends it is the norm. Mr. Johnston relies on the fact that his readers do not understand the complexity of the tax system. Most information he then presents will not be understood by the reader. He can then misrepresent what the information means, either through his own ignorance or to make his political point. Mr. Johnston spends almost his book discussing illegal strategies that I and most reputable CPAs and tax attorneys would not touch. Thus, the title of the book "Perfectly Legal" is inaccurate and it must be an intentional deception. For example, chapter 14 is entitled "Mass Market Tax Evasion". Tax evasion is illegal and not "Perfectly Legal". He then proceeds to discuss at length the concept that "there is no law that requires Americans to pay taxes". Some of my clients will read trash like this and think everyone is doing this and they want to evade taxes too. These clients are shown the door. Any CPA that takes clients like this is asking to lose his license. Most of the rest of book uses the same strategy. Discuss the illegal and the fact that some may go down this route and Mr. Johnston pretends it is the norm. Nothing is further from the truth. If the title was "Perfectly Illegal" then the book would be not be so deceptive. But then, how many books would that sell?
Rating:
Summary: Class warfare, not real answers that Americans want to hear.
Review: The Author is fully aware of the (somewhat confusing and potentially complex) tax law, and the "Tax Honesty Movement". Instead of engaging the argument in a common sense way, the way tax honesty people do, DCJ chooses to muddy the waters by class warfare, the poor and disenfranchized against the rich and connected. While it may be and effective way to sell books, it isn't shedding any new light on the issue. Sure, our government and the lobby process is corrupt. Sure, wealthy have better access. How about the fundamental questions like; - What is my "fair share"? (2%, 5%, 45% of my wages?) -Isn't that "communism" (progressive taxation, Marxism)? - Which laws make citizens working and living in the "several states" liable? - What, exactly is "income"? -Why is it so convoluted in the law? - What (if any) relationship is there between "income" taxes (subtitle A), and all the other taxes (FICA, etc)? Is "income tax" a direct, or an indirect tax? How would we know, where would we find such information? - What is the relationship between Central banking, fractional reserve lending, Social security, and the income tax system? - Under what conditions was the 16th ammendment ratified (was it even ratified?)? - Even if it was properly ratified, did the 16th create new federal powers to tax? - What does Article 1 say about Federal power to tax? - Did the 16th change article 1 in any way? - Is it just a coincidence that the social security system, the income tax, and the Fed happened all at the same time? What is the economic and political effect of such mechanisms (adding to the money supply, reduccing the money supply, adding to inflation)? - Who benefits by the introduction of such systems? DCJ knows the answers to all the questions, but he chooses to lead the reader in other directions, away from fundamental questions that citizens want to know from their government. DCJ prefers to invoke class envy than to enlighted and make the system truly "fair". The people want to know. DCJ knows. He has a big megaphone. He chooses to promote class warfare. As tax honesty people are saying everywhere, in courtrooms, in press conferences..."Show me the law". What does the law say that you owe? Did the founding fathers give guys like Ted Kennedy and Hillary Clinton to tax your earnings directly? Why might they think that's a bad idea?
Rating:
Summary: What is the Equitable Basis for Taxation?
Review: I wrote a previous review, but some of these reviews reveal that people are being fooled, because the equitable basis for taxation is almost never revealed. People should, ideally, pay a tax that is proportional to the benefits that they gain from the tax supported infrastructure. It is total wealth, not income, consumption or annual increase in wealth, that is best correlated with the benefit that is received. That is why people are so easily fooled by statements that compare a percentage of wealthy persons and a percentage of income taxes paid. It is entirely false, because wealthy persons can easily make their taxable income almost any number that they wish to make it. Most of their wealth and annual increase in wealth goes untaxed, but not unrealized because they have many mechanisms for realizing it without making it subject to taxation. Don't be a sucker. You are being robbed by theft-by-taxation schemes, in which one of our political parties excels, although both participate. Even war has now been turned into a scheme for maximizing the cost, number of contracts and, thus, contributions. It is all about money and who get it.
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