Video: The compliance costs of the tax code
posted at 11:36 am on April 13, 2010 by Ed Morrissey
As Americans rush to tax accountants and preparation firms this week to finalize their tax returns, it’s a good time to consider the costs of compliance. The Center for Freedom and Prosperity offers a new entry in its Econ 101 video series that details these costs, not just on paying third parties for preparation but the systemic cost to the economy each year. What are these costs? Consider the 7.6 billion man-hours needed for federal tax compliance, which equates to 3.8 million full-time jobs. Tax compliance is one of the largest industries in the US.
“But I do my own taxes,” some will say, “and so it doesn’t cost me anything.” Want to bet? Every product and service consumers buy have these extra costs embedded in the retail price, and not just from the manufacturer, but also from the distributor and every other middleman. The total cost is around $340 billion per year, which is an anchor on economic growth and productivity — and that’s not even considering the fact that the tax code has gotten so complex that not even the IRS can accurately answer questions about it any longer.
It costs everyone, as the instructor explains:
What has this administration done to correct this? They will add thousands of more IRS employees to do to health care what they’ve already done to tax compliance.
Blowback
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wouldn’t pass that up at closing time at the bar
Doctor Zhivago on April 13, 2010 at 11:38 AM
I’m sorry. I didn’t listen to a word she was saying. But whatever she did say, I agree 100%.
Doughboy on April 13, 2010 at 11:38 AM
I’ll have an order of hot wings and a pitcher of beer. Thanks.
brak on April 13, 2010 at 11:40 AM
Can’t.See.Video.
BobMbx on April 13, 2010 at 11:41 AM
Change your name to Geithner or Rangel and tax problems will go away. Simple.
Bishop on April 13, 2010 at 11:41 AM
I can stay after to clean erasers. Just sayin’.
Cicero43 on April 13, 2010 at 11:41 AM
*awaits “I’d hit that” comment from lorien*
bluejacket on April 13, 2010 at 11:42 AM
Will all of the 17,000 new IRS agents look like her???
PatriotRider on April 13, 2010 at 11:42 AM
Haha. HotAir guys crack me up (speaking as a woman). Good video, too.
Renwaa on April 13, 2010 at 11:43 AM
Attractive brunette speaking about tax code compliance.
The implication is she’s a conservative.
Liberals, eat your heart out.
BobMbx on April 13, 2010 at 11:44 AM
Shouldn’t Van Halen’s ‘Hot for Teacher’ be the underscore?
rickyricardo on April 13, 2010 at 11:45 AM
Keeping a breast of the compliance costs econ 101.
fourdeucer on April 13, 2010 at 11:46 AM
The song, “Hot for Teacher” is running through my head for some reason…
Vashta.Nerada on April 13, 2010 at 11:47 AM
Economics + Cleavage = ?
rickyricardo on April 13, 2010 at 11:47 AM
Time to drop off the grid.
tarpon on April 13, 2010 at 11:47 AM
I’d like to comply with her. IYKWIMAITYD.
lorien1973 on April 13, 2010 at 11:47 AM
You. Poor. Bastard.
CurtZHP on April 13, 2010 at 11:47 AM
The tax code is simple enough for most people .Thousands of pages simply do not apply to 99.99% . This “victimizing the stupid” is a distraction from the goal to make government stop using the tax code to modify behavior . Flat 11% personal and 11% VAT for business.
borntoraisehogs on April 13, 2010 at 11:50 AM
Fair Tax
the Coondawg on April 13, 2010 at 11:50 AM
I absolutely agree.
I didn’t watch. What does she say?
Sir Corky on April 13, 2010 at 11:50 AM
wish she poured water over herself to cool off after that rousing talk. Or at least jumped up and down
Doctor Zhivago on April 13, 2010 at 11:52 AM
We’re all Waldos now!
Seriously, if I’m found to be naughty, can I choose my punishment.
But really seriously, Obama and his supporters made such great hay of his Byzantine system of refundable tax credits. Consider that each requires a two-page form and four pages of instructions, and you have the Obama tax clusterf**k.
Who’s going to help the average taxpayer complete the forms to claim these credits? ACORN workers!
BuckeyeSam on April 13, 2010 at 11:53 AM
If you look long enough, you’ll see there is a blackboard behind her.
Thunderstorm129 on April 13, 2010 at 11:53 AM
PatriotRider on April 13, 2010 at 11:42 AM
we should be so lucky.
gsherin on April 13, 2010 at 11:54 AM
WOW..I love conservative woman…
twiggman on April 13, 2010 at 11:55 AM
hubba, hubba
paulsur on April 13, 2010 at 11:56 AM
Blech.
Can I get my tax information from someone whose look isn’t screaming, “I’m a dumb bimbo, look at my breasts!”
TheBlueSite on April 13, 2010 at 11:56 AM
No. They’ll look more like her.
Cicero43 on April 13, 2010 at 11:57 AM
She was a brunette?
I was admiring her tan and didn’t get that far up.
Rod on April 13, 2010 at 11:57 AM
Concern troll is concerned. (again).
lorien1973 on April 13, 2010 at 11:57 AM
Economics + Cleavage = PROFIT!
rickyricardo on April 13, 2010 at 11:47 AM
FIFY
- The Underwear Gnomes
VelvetElvis on April 13, 2010 at 11:57 AM
“I Won”
screwauger on April 13, 2010 at 11:59 AM
Switch to the “All Obi-Won, All the Time” channel — its dumb bimbo has moobs.
ya2daup on April 13, 2010 at 11:59 AM
Or her.
Cicero43 on April 13, 2010 at 11:59 AM
man..
blatantblue on April 13, 2010 at 12:00 PM
Or maybe her.
Cicero43 on April 13, 2010 at 12:00 PM
Your link isn’t working. Which is divine intervention.
Doughboy on April 13, 2010 at 12:00 PM
killjoy
paulsur on April 13, 2010 at 12:01 PM
But most likely, him.
Cicero43 on April 13, 2010 at 12:01 PM
Puhleeze… it’s “board of color”! (There’s something behind her?)
ya2daup on April 13, 2010 at 12:02 PM
You’re very generous to pander to the tastes of TheBlueSite
gwelf on April 13, 2010 at 12:02 PM
Hot, conservative, and smart. Dream girl.
WisCon on April 13, 2010 at 12:02 PM
If we went to a “post card” type Flat/Fair/other tax, how would it affect unemployment?
Tax Specialists (Accounting and Legal), many bookeepers and IRS agents would lose their jobs.
But employers could afford to hire more workers for productive activities and “smart” people could be retained to find better ways to spend the companies money.
But the net, would be more unemployment of a highly specialized class of accountants and lawyers.
barnone on April 13, 2010 at 12:05 PM
If Tipper went to her reward and Al hooked up with your ideal of an IRS agent, would she become Jamie Gorelick Gore?
ya2daup on April 13, 2010 at 12:06 PM
Where’s my world’s smallest violin?
lorien1973 on April 13, 2010 at 12:07 PM
Anyone want to guess what BlueSite looks like?
Here’s mine:
Rod on April 13, 2010 at 12:09 PM
Imagine all of those lawyers’ and accountants’ brains being used instead to do something productive. Would we have cured cancer by now? Maybe I’d have that flying car that folds up into a briefcase (which is ten years late!) and a robot maid (a Roomba doesn’t count).
The Monster on April 13, 2010 at 12:10 PM
Me too. I’ll bring in erasers to clean, for cryin’ out loud.
nickj116 on April 13, 2010 at 12:10 PM
No, they will look like this.
forest on April 13, 2010 at 12:10 PM
Heh.
It’s just concern trolling from thread to thread.
lorien1973 on April 13, 2010 at 12:10 PM
Ghey or Hairy feminist?
You decide!
rickyricardo on April 13, 2010 at 12:12 PM
Both.
CurtZHP on April 13, 2010 at 12:12 PM
Wow. Someone made a statue of Henry Waxman! How nice.
Rod on April 13, 2010 at 12:13 PM
No, they will look like this.
forest on April 13, 2010 at 12:10 PM
That looks like someone bronzed granny botox pelosi…
SHARPTOOTH on April 13, 2010 at 12:14 PM
The compliance costs for that are about as simple as can be. It would literally fit on a post card.
The Monster on April 13, 2010 at 12:15 PM
Hey bloosite. Take some more pictures of your cd collection!
Inanemergencydial on April 13, 2010 at 12:15 PM
those two choices are like testicles and chocolate. Sure, they can go by themselves but its more fun when they are together
Doctor Zhivago on April 13, 2010 at 12:15 PM
Yeah, that’ll be believed.
Queen0fCups on April 13, 2010 at 12:15 PM
Good presentation on a topical subject being offered by an attractive girl that smiles while delivering it. Well done.
To “TheBlueSite”, uncalled for comment. That is someone’s daughter. Someone who has obviously raised a very bright and attractive girl. You have much to learn about decorum.
DanMan on April 13, 2010 at 12:15 PM
It’s 11:20…I’m thinking Hooters for lunch. I don’t know why.
rollthedice on April 13, 2010 at 12:17 PM
They could not get someone prettier…
GW_SS-Delta on April 13, 2010 at 12:18 PM
well done in my view. she’s a beautiful girl, no need to insult her with wet t-shirt and boobie jokes. hope they have her do more of these.
as for net effects of flat tax, how could it possibly be bad to see demand for lawyer and highly specialized accountants go down? If we accept that it would be beneficial to the economy overall, these people can choose to adapt or go byebye. Same argument as what applied for farmers, milkmen, newspaper companies, etc.
smfic on April 13, 2010 at 12:18 PM
Perfect attendance.
Solly on April 13, 2010 at 12:18 PM
If we eliminated the IRS, we’d eliminate Sweetheart Deals that pols use to spur “job creation”. Irony, neh?
Nethicus on April 13, 2010 at 12:19 PM
So we can never dismantle any bureaucracy? Even if government is bleeding it’s citizens and the private sector dry?
gwelf on April 13, 2010 at 12:19 PM
Social anxiety, my man, you need to control it better.
You definitely have a thing against pretty women, and did you know that you share Bill Maher’s predilection for referring to women as bimbos? Esteemed company, you should tout that on your site.
Bishop on April 13, 2010 at 12:20 PM
show me a girl with nice cans and I’ll fap. That’s not an insult in my eyes but a compliment.
Segment was written well and she did have a good delivery. Now if only Jindal could learn from her
Doctor Zhivago on April 13, 2010 at 12:21 PM
And there in;t the will power in either party to come up with a solution since there are too many interested parties with an interest in maintaining the status quo.
lexhamfox on April 13, 2010 at 12:21 PM
I mean, you could. But if you’re a guy, why would you want to? And if you’re a girl, sounds like jealousy to me.
Abby Adams on April 13, 2010 at 12:22 PM
Tax code is so hot…
Wyznowski on April 13, 2010 at 12:23 PM
Heck, the tax code is so complicated that the chairman of the NY Federal Reserve and the chairman of the House Ways & Means committee — which writes the tax code — can’t comply with it. Unless what they did was intentional.
rbj on April 13, 2010 at 12:24 PM
What was this video about again? I watched it but was a little distracted.
davek70 on April 13, 2010 at 12:26 PM
No, no, no Ed. This is Tea Party racist propaganda. I am saddened to discover that you are a ‘neo-Confederate’ Yankee living in the upper mid-West. Has the Klan managed to invade and brainwash even mid-Westerners too?! Sacer bleu!
As a Southerner I am genetically predisposed to be vulnerable to propaganda spouting rebellion, bigotry, race hatred and violence. I know this thanks to Norah O’Donnell, among others. In other words, I can’t help myself, but am slated for a re-education camp in the near future, or if that fails….. the final solution for all ‘us Sothroners’. But you…..? Quick Ed, save yourself. Repent and repeat the following…. Big Brother good, common sense bad. Do it over and over until you become a believer.
JimP on April 13, 2010 at 12:30 PM
People complain, Cato listens!
SnowSun on April 13, 2010 at 12:36 PM
I hope they do to. I really do. I won’t miss one, no matter what the subject. And I’ll bring an apple to class every day. And I’ll be early. And I’ll stay late. And I’ll hold the door for her. And I’ll always do my homework. And I’ll be her best student ever. And then she’ll notice me. And then she’ll smile at me. And then we’ll get married. And then you can all shut-up because nobody talks about my wife like some of you disrespectful, childish louts have talked about her. Shame on you!
Rod on April 13, 2010 at 12:37 PM
It’s funny. I see a constant thread among a lot of commenters here. Immature name-calling children. Sorry I think a video about taxes should be serious and not a breastfest. I definitely must be gay if I want SERIOUS info. to reach a serious audience. And by golly, add in something about social anxiety that I posted to my website in 1999. Your parents must be proud.
TheBlueSite on April 13, 2010 at 12:39 PM
The IRS hires the accountants that are still unemployed 1 year after they graduate. The bottom end of the students.
seven on April 13, 2010 at 12:41 PM
Concern troll is still concerned.
Or to be more straight with you. Based upon your other posts, you don’t -want- serious info. You want to troll. So this is just your way of doing so.
lorien1973 on April 13, 2010 at 12:42 PM
King Banian must have been busy. So they had to settle for Hiwa Alaghebandian.
forest on April 13, 2010 at 12:44 PM
Come on man, not this close to lunch.
angryed on April 13, 2010 at 12:46 PM
shouldn’t have said her name as Whodini was completely right, the freaks really do come out at night and she’ll be targeted
Doctor Zhivago on April 13, 2010 at 12:48 PM
No shiite, you actually posted something about SI on your site? Whoa, I AM good, maybe I should be a psychiatrist.
Was any of the information the young woman presented beyond your ability to understand? Who cares what she’s wearing, would the information be more credible if she were wearing a burkha or a Victorian bustle dress? Talk about blaming the messenger.
Bishop on April 13, 2010 at 12:48 PM
I’ve never been more interested in tax code in my life
Alden Pyle on April 13, 2010 at 12:49 PM
I’ve never bought into the “gazillion of hours spent doing taxes” story. Something like 70% of people don’t itemize. Which means it should take them no more than 30 minutes to do their taxes.
For the 30% that does itemize, turbotax covers almost everthing you need. My tax returns run into the 15-20 page length with all the schedules and forms. But all I do is answer the turbotax questions, enter the number and hit next. I get a final number, write the check, e-file, then send the check to the IRS.
Yea 30 years ago doing it all by hand would have been a nightmare. But now that we have these neat-o things called computers which do all the math for us, it’s not really that much of a pain.
Let’s argue about the need for lower taxes not whine that we have to spend an afternoon in April entering data into our laptops.
angryed on April 13, 2010 at 12:50 PM
Looking thru this thread, I see very little talk about tax codes. A lot of talk about how hot this girl is.
I think the comments themselves prove my point. Serious issues lose value when you try to front them with big breasted women showing cleavage.
Sorry for wanting youtube viewers to get a serious message in a serious way. I’ll try to go shoot myself now for daring to think that would be a good idea.
TheBlueSite on April 13, 2010 at 12:51 PM
The B@#& S#!%,
Just quit your insignificant griping. Go watch the old CFP videos and see why we’re all happy about the new change up in messenger. (I mistakenly called them the Cato Institute before).
Dang, you are just a concern troll trolling.
SnowSun on April 13, 2010 at 12:51 PM
doing it the way you want it framed won’t get anyone to watch it. Sorry but the tax code is really freeking dull. At least with a bit of eye candy, you’ll get people to watch it more than once. And after the drooling, they’ll listen.
Doctor Zhivago on April 13, 2010 at 12:53 PM
Concern troll is still very concerned.
Did you actually have a disagreement with anything in video?
lorien1973 on April 13, 2010 at 12:54 PM
If you wouldn’t mind.
lorien1973 on April 13, 2010 at 12:54 PM
Keep proving my point.
TheBlueSite on April 13, 2010 at 12:55 PM
PS-
Apology not accepted. Go make your own video then.
SnowSun on April 13, 2010 at 12:55 PM
good one!
gregbert on April 13, 2010 at 12:57 PM
Sure, because no one here can possibly understand the tax message while simultaneously appreciating the good looks of the presenter.
No wonder I always trip while trying to chew gum and walk at the same time, it’s too complicated.
Bishop on April 13, 2010 at 12:58 PM
So go ahead and talk about the tax code, or are you still fixated on the “dumb bimbo” who is apparently showing off her breasts?
Bishop on April 13, 2010 at 1:02 PM
Cure cancer? We can’t afford that – most people are living too long as it is. /SARC
gwelf on April 13, 2010 at 1:02 PM
Probably true, but I just want to make sure nobody thinks I’m in the habit of “outing” anyone who wants to remain anonymous, her name is posted at Big Government by her former boss in the original post of the video.
forest on April 13, 2010 at 1:06 PM
that was meant as a kinda joke. Though I think they have already gone after her (I know DU has)
Doctor Zhivago on April 13, 2010 at 1:08 PM
It’s like Herman Cain said at the SRLC……”Stay interested and stay informed.” Well, this will do it. Mr. Steele, are you listening?
Nothing is more American like promoting liberty by using hot chicks. I’m also glad I don’t have to look at Dan Mitchell’s mug again.
Now get back to work so you can for someone else’s health care, pleebs.
Dr.Cwac.Cwac on April 13, 2010 at 1:13 PM
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