The People of the Book is an Islamic phrase used for Jews and Christians. Islam teaches that Moses and Jesus were given books by allah, the Torah (Tawraat) and Gospel (Injeel).
Muslims will try to use the phrase as if it is a good thing, a compliment even. Well - IT'S NOT!
Quran (9:29) - "Fight those who believe not in Allah nor the Last Day, nor hold that forbidden which hath been forbidden by Allah and His Messenger, nor acknowledge the religion of Truth, (even if they are) of the People of the Book, until they pay the Jizya with willing submission, and feel themselves subdued."
The people of the book get to pay jizya to stay alive and keep their faith. They don't have to convert or die, as the idolaters, polytheists, atheists, agnostics and all other non-Muslims have to do. Sounds ok, right? WRONG! Jews and Christians have to pay "protection money" in order to keep their faith, but who do we pay to? Muslims. And who do we need protection from? Muslims! Well, that's a pretty good racket, isn't it? Wouldn't it be better for the "people of the book" if Muslims just left us alone?! No, they can't do that. They have to fight until all religion is for allah. By being subjugated, the people of the book are now less than Muslims and admit that Islam is best. It's submission - what Islam is truly all about. People of the book can live as long as they become dhimmis, a lesser class of people in Islam. Discrimination, hatred and intolerance are built into Islam.
According to Tafsir Ibn Kathir, on Quran 9:29:
Paying Jizyah is a Sign of Kufr and Disgrace
Allah said,
﴿حَتَّى يُعْطُواْ الْجِزْيَةَ﴾
(until they pay the Jizyah), if they do not choose to embrace Islam,
﴿عَن يَدٍ﴾
(with willing submission), in defeat and subservience,
﴿وَهُمْ صَـغِرُونَ﴾
(and feel themselves subdued.), disgraced, humiliated and belittled. Therefore, Muslims are not allowed to honor the people of Dhimmah or elevate them above Muslims, for they are miserable, disgraced and humiliated. Muslim recorded from Abu Hurayrah that the Prophet said,
«لَا تَبْدَءُوا الْيَهُودَ وَالنَّصَارَى بِالسَّلَامِ، وَإِذَا لَقِيتُمْ أَحَدَهُمْ فِي طَرِيقٍ فَاضْطَرُّوهُ إِلَى أَضْيَقِه»
(Do not initiate the Salam to the Jews and Christians, and if you meet any of them in a road, force them to its narrowest alley.)http://www.islam-universe.com/tafsir/
Don't be fooled by Muslims. The "People of the Book" are not friends with Muslims, not equal to Muslims and will be killed or converted if they don't pay the jizya, protection money.
Qur'an (5:51) - "O you who believe! do not take the Jews and the Christians for friends; they are friends of each other; and whoever amongst you takes them for a friend, then surely he is one of them; surely Allah does not guide the unjust people."