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Perfectly Legal: The Covert Campaign to Rig Our Tax System to Benefit the Super Rich--and CheatEverybody Else (Paperback)
by David Cay Johnston (Author) "Jonathan Blattmachr walked swiftly toward the Park Avenue curb, eager to find his driver so he could be whisked away from Manhattan to a waiting..." (more)
Key Phrases: political donor class, untaxed fortunes, stealth tax, Social Security, New York, United States (more...)
		
	
 
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Editorial Reviews
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Most Americans would agree that they are duty bound as beneficiaries of our democracy to pay taxes, and the majority of us do pay—-exorbitantly. But what about those who do not pay their fair share? David Cay Johnston, a Pulitzer Prize-winning reporter for the New York Times, here reveals how fairness and equity have eroded from the American tax system. Johnston describes in shocking detail the loopholes our government provides the "super rich"--from private individuals to profitable corporations—-to hide their wealth, to defer or evade tax payments, and to pass the bill to law-abiding middle-class Americans. The loss in revenue "imposes a severe cost on honest taxpayers" through reduced services, increased federal debt, and a weight on the middle class that threatens to impede its ability to achieve upward social mobility.

Admitting the extreme complexity of our economy and by extension our tax code, Johnston points out that the very wealthy do, of course, pay taxes. However, because of shelters that allow them to understate most of their income, they pay little more on average than most Americans on the dollar. This is regressive, and unquestionably favors the superrich. Johnston includes examples of outrageous corporate malfeasance (such as companies that establish off-shore tax addresses) and exposes the tax benefits of the particularly loathsome practice made famous by Jack Welch, in which thousands of wage earners are laid off while a handful of executives are granted hundreds of millions of dollars through deferred compensation, company stock options, and lucrative retirement packages, all at stock holders' xpense. In addition to these offenses, he describes the tax evasion methods of those who simply defy the law and are emboldened by a beleaguered IRS that is too underfunded to serve as an effective deterrent to tax cheats. Johnston calls for a complete overhaul of the system. But because those who most benefit from these laws comprise the "donor class" that supports the government power structure, our prospects for reform remain very bleak. --Silvana Tropea --This text refers to an out of print or unavailable edition of this title.

From Publishers Weekly
Since he began writing about taxes for the New York Times in 1995, Johnston's investigative reporting has earned two Pulitzers. The journalistic legwork informs every page of this expos‚ of the ways in which, he says, America's taxation system is stacked in favor of the wealthy. Johnston evades the imposing abstractness of the tax code by keeping the story focused on individuals, from working-class parents facing audits to Internal Revenue Service officials desperate for the resources to revamp their procedures. Chapters addressing the inability of the IRS to go after the worst tax cheats, thanks in part to opposition from grandstanding members of Congress, are particularly effective in putting a spotlight on the problem, but there's plenty of space given to revealing how canny tax attorneys come up with legal (and barely legal) ways to get around the system. And for those who can afford it, he reports, there's always a new dodge available once the law has caught up to the latest tricks. At some points, dealing with numbers becomes unavoidable, but even here Johnston displays a knack for breaking the story down into easily grasped components. Though the tax cuts engineered by Presidents Reagan and George W. Bush receive most of the criticism, Democrats come in for their fair share of opprobrium. Genuine reform, he suggests, will require serious and sustained attention from the public, not just reflexive griping. His book is a thoughtful overview for any citizens willing to educate themselves on the issue.
Copyright © Reed Business Information, a division of Reed Elsevier Inc. All rights reserved. --This text refers to an out of print or unavailable edition of this title.

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Product Details

    * Paperback: 352 pages
    * Publisher: Portfolio Trade (January 4, 2005)
    * Language: English
    * ISBN-10: 1591840694
    * ISBN-13: 978-1591840695
    * Product Dimensions: 8.4 x 5.4 x 0.8 inches
    * Shipping Weight: 11.2 ounces (View shipping rates and policies)
    * Average Customer Review: based on 107 reviews. (Write a review.)
    * Amazon.com Sales Rank: #7,444 in Books (See Bestsellers in Books)

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First Sentence:
Jonathan Blattmachr walked swiftly toward the Park Avenue curb, eager to find his driver so he could be whisked away from Manhattan to a waiting plane. Read the first page
Key Phrases - Statistically Improbable Phrases (SIPs): (learn more)
political donor class, untaxed fortunes, stealth tax, tax law enforcement, alternative tax, alternative minimum tax, regular income tax, tax cut plan, income ladder, tax cheating, child credit, tax cheats
Key Phrases - Capitalized Phrases (CAPs): (learn more)
Social Security, New York, United States, Global Crossing, White House, President Bush, Cayman Islands, Stanley Works, Department of the Treasury, Wall Street, Senate Finance Committee, New Britain, Bill Gates, Internal Revenue Service, Rochester Tel, Senator Roth, Jonathan Blattmachr, Los Angeles, Tax Notes, Comfortable Retirement, General Accounting Office, Maritza Reyes, Only the Rich Deserve, Capitol Hill, Dave Klaassen
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This book cites 7 books:

    * Flat Tax (Hoover Institution Press Publication) by Robert Ernest Hall on page 192, and Back Matter
    * In Search of Excess by Graef S. Crystal on page 4
    * Robin Hood by James Norris in Front Matter
    * Animal Farm (Signet Classics) by George Orwell on page 15
    * Contract with America by Republican National Committee on page 189

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163 of 174 people found the following review helpful:
Must Read, January 9, 2004
Reviewer: A reader
This review is from: Perfectly Legal: The Covert Campaign to Rig Our Tax System to Benefit the Super Rich - and Cheat Everybody Else (Hardcover)
I am a traditional conservative who has been bothered by tough coverage of the tax code in WSJ for years, but I am deeply troubled by Johnson's book. I have spoken with three tax attorneys who read it and found it accurate. What upsets me most is that THEY are not outraged. It does not do justice to this remarkable popularizationof an extremely complex subject to say merely that we always knew that the tax system was unfair. Cynicism is not Johnson's issue. The tax code is not understood by ANY of officials we have elected and rely on to represent our interests,. It is a black hole that makes incalculable (literally) national wealth disappear from our common enterprise. While we argue about deficits or unfunded mandates, hundreds of billions of untaxed profits of the very rich are sheltered and deferred in ways unavailable to wage earners who will soon be further burdened by a perversion of the "alternative minimum tax."

It is worth thousands of dollars to you, in all probability, to read this book carefully and then bring a copy to your Senators and Congressman with the demand that it be read. No vague review should divert every serious citizen from reading this clear and detailed explanation of why your government takes so much money from you while not securing your financial future.

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89 of 105 people found the following review helpful:
A Badly Abused, Highly Flawed System, January 28, 2004
By 	William Hare (Seattle, Washington) - See all my reviews
(TOP 500 REVIEWER)    (REAL NAME)   
This review is from: Perfectly Legal: The Covert Campaign to Rig Our Tax System to Benefit the Super Rich - and Cheat Everybody Else (Hardcover)
David Cay Johnston has received two Pulitzer Prizes for his economic writing in the New York Times. His privileged vantage point provides him with the experience and insight to write a book delineating the potential disaster confronting America from the manipulation of the federal tax system to benefit the wealthy at the expense of the rest of society.

Many years ago H.L. Hunt, the Texas oil magnate then reputed to be the world's richest man, revealed his confident arrogance about the federal tax system, indicating that "even if they taxed us 99%" that the wealthy would prevail and pay nothing, leaving the rest of society to bear the responsibility. He had reason to be confident, as noted by Johnston's informative investigation. As for ferreting out tax cheats, the current IRS weakesses are appalling. Johnston noted that after locating the 16,000 worst suspected tax cheats, the IRS then investigated only a paltry 4% of the perceived malefactors.

Johnston exposes the gimmick of pandering members of Congress who showboat on behalf of the wealthy to insure continuing tax breaks. A particularly egregious example was the drama put on by Senator Trent Lott of Mississippi, who lost his Senate Majority Leader status for his tribute to former ardent segregationist, Senator Strom Thurmond. Lott's histrionics focused on perceived abuses by the IRS which were never corroborated. The performance related to keeping the heat on those who wanted to change the system by presenting the image of an aggressive IRS trampling on the rights of the wealthy patrons Lott sought to protect.

While focusing much criticism on presidents Ronald Reagan and George W. Bush for helping skew the federal tax code in the direction of the wealthy through their massive tax cuts, Johnston notes that to attempt to focus too much of the blame on these individuals would be a grave mistake. It is much broader than these two individuals, as powerful as they were and as fervent as their efforts have been in that direction. The special interests have woven their magic in bringing prominent as well as less than prominent Democrats and Republicans onto their team with the situation deteriorating over a long period of time. For instance, remember footage of so-called "seminars" at posh country club retreats? Scores of these have been organized by the corporate sector to "inform" elected officials from the House and Senate on how to properly deal with the tax system. Needless to say, these seminars are best conducted in comfortable surroundings. Unsurprisingly, those who cooperate find themselves back in office, assisted by special interest largesse. Those who do not generally find themselves out of office.

Grover Norquist is a successful tax lobbyist with his own think tank. He is a prominent adviser to Bush, Cheney, and Rove. Knowing how the system is played, Norquist has referred to bipartisan congressional cooperation as "date rape." As for basic federal programs enjoyed by taxpayers, such as park systems and educational benefits, Norquist takes a harsh view. He has stated his desire that federal government activity, absent defense spending and anti-crime activity, belongs "flushed in a toilet bowl." He knows that if the system is top heavy enough in the corporate direction, with the middle class confronting the burden, that a plutocracy will result more in the tradition of eighteenth century France's pre-revolutionary phase than the New Deal, Fair Deal, and New Frontier administrations of presidents Roosevelt, Truman, and Kennedy.

You see, France can be used as a sensible model, after all, by Bush partisans! Freedom fries, anyone?

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44 of 49 people found the following review helpful:
Perfectly Legal, January 8, 2004
By 	L. Hobson (Palmdale California) - See all my reviews
(REAL NAME)   
This review is from: Perfectly Legal: The Covert Campaign to Rig Our Tax System to Benefit the Super Rich - and Cheat Everybody Else (Hardcover)
Written by David Cay Johnston

I do not attack the Bush family in my book.

In my book I explicitly state that it is perfectly proper for rich families to seek to tilt the tax system in their favor, that the problem is that the middle class has largely withdrawn from politics and the members of Congress -- many of whom, I have interviewed -- have their minds focused on the concerns of their donors, who are a narrow and rich group of Americans. That Congress behaves as it does fits perfectly with classic economic theory (I went to the Chicago graduate school of economics on a fellowship 31 years ago).

I certainly say that the rich overall -- and they are not monolithic -- have changed our tax system and that the results we see today re not the result of normal capitalism, but a rigged market.

But frankly I am just skimming here what commentators who have read the book, left and right and in the middle, have all been describing as -- and these are not my words, but theirs -- with terms like "extraordinary achievement," "One of the most important documents in the history of the Republic," "even handed," "the most extraordinary work of journalism I have ever read"..... Yesterday on the radio a leading lobbyist for the rich on taxes, who opened up on a radio interview with an attack, soon found himself saying again and again that he agreed with what I was saying.......

So I hope you take the time to read the book, which is not an attack on the Bush family (and, indeed, makes no mention of any Bush other than the two presidents in their official role as President except for my examination of George W. Bush's income tax return to make a particular point about the tax system and the IRS).

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Review of Perfectly Legal
This book is well researched and addresses an area every American should be aware of, but I suspect too few are. Read more
Published 1 month ago by A. Gill

Excellent
Another book which confirms my own. This book in general shows that the super-rich are (in general of course) evil, but it also shows that the U.S. Read more
Published 13 months ago by Chosen by Grace 777

The prize is capital gains.
Blattmair devised a scheme where he would use a charitable trust for MS Bill Gates as a way to avoid paying $56 million in capital gains taxes for $200 million in stock profits... Read more
Published 15 months ago by Golden Lion

interesting, very needed yet a little over the top
This book was incredibly interesting and probably the most useful piece of investigative journalism I have seen on this topic. Read more
Published 15 months ago by T. Sorensen

Blinded by numbers
Simply put, this book uses statistics and uncited claims to wow the reader whenever possible. This book had tremendous potential to show how broken the US tax system is and how... Read more
Published 15 months ago by B. Wilson

Part Facts, Part Conspiracy Theory
I'm giving this book three stars because on the surface, it appears to be well-researched and it is certainly well-written. Read more
Published 16 months ago by rtroxel

Perfectly Legal - A Great Read-An Eye Opener
Book is extremely well written and well researched. If you wonder what is happening in today's world and how the common and/or middle class member of the American society is... Read more
Published 16 months ago by C. Pyles

There is a better tax base we're pretty much ignoring
David Cay Johnston's book is excellent, and I commend it to your attention.

If it has a weakness, it is that it doesn't cause the reader to look outside the income... Read more
Published 18 months ago by Wyneth C. Achenbaum

The normal state of affairs
However unfair you might consider the US tax system, David Cay Johnston makes a compelling case that it's much worse than you thought. Read more
Published 19 months ago by Lawrence F. Povirk

Proof that the USA is a "Corporatocracy"
This book illustrates how the political donor class of America has steadily and systematically undermined the Democratic process of this country. Read more
Published 19 months ago by Noodlestorm

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