New Video Exposes Nightmare of IRS Complexity

« Europe Should Not Copy America’s Imperialist and Anti-Growth Worldwide Tax Regime

New Video Exposes Nightmare of IRS Complexity

April 12, 2010 by Dan Mitchell

Here’s a new Economics 101 video about the cost of the tax code from the Center for Freedom and Prosperity. I won’t spoil the surprise by giving the details, but you if you’re not angry now, you will be after watching.

Posted in Big Government, Bureaucracy, Center for Freedom and Prosperity, Corruption, Flat Tax, Government Thuggery, Income tax, IRS, Sleaze, Taxation, Taxpayer Ripoff, Uncategorized, Video | Tagged Compliance Cost, Corruption, Hiwa, Hiwa Alaghebandian, Income tax, Internal Revenue Code, Internal Revenue Service, IRS, Paperwork, Red Tape, Tax complexity | 80 Comments

80 Responses

on April 15, 2022 at 5:27 pm Dan Mitchell article: Democrats want to give $80 billion to the Internal Revenue Service to audit millions of Americans each year. Yet…after the progressive website ProPublica first published the secret tax information of rich Americans, the tax agency

[…] it is tax-filing season and we all want to honor our wonderful tax system, let’sgo into the archives and show this video from last year about the onerous compliance costs of the internal revenue […]
on February 12, 2021 at 2:14 am OPEN LETTER TO BARACK OBAMA ON HIS AUTOBIOGRAPHY “A PROMISED LAND” Part 83 OBAMA’S VIEW ON MINIMUM WAGE “I promised to raise taxes…I promised to raise the minimum wage” | The Daily Hatch

[…] blame. In this Center for Freedom and Prosperity video, a former intern of mine (continuing a great tradition) explains that politicians destroyed jobs when they increased the minimum wage by more than 40 […]
on January 16, 2021 at 9:57 am 2021 Democrats should remember Dan Mitchell’s words: “Regardless of whether it is financed by taxing or borrowing, every penny of spending diverts resources from the productive sector of the economy” (Thomas Sowell on Biden) | The Daily Hatch

[…] University and a former Cato Institute intern. If this video is anywhere near as successful as the other video narrated by a former Cato intern, perhaps this will become a new […]
on January 6, 2021 at 9:00 am 2021 Democrats should remember Dan Mitchell’s words: “Regardless of whether it is financed by taxing or borrowing, every penny of spending diverts resources from the productive sector of the economy” | The Daily Hatch

[…] University and a former Cato Institute intern. If this video is anywhere near as successful as the other video narrated by a former Cato intern, perhaps this will become a new […]
on June 13, 2016 at 10:24 pm The Psychic, Financial and Life Costs of Complying with the Internal Revenue Code | alliance for the defeat of citizenship taxation

[…] here to read comments about this […]
on January 2, 2014 at 2:17 pm Belinda Mills

Yes, let’s simplify it for Pete’s sake!
on September 19, 2012 at 2:52 pm Just in Case You Need another Reason to Support the Flat Tax « International Liberty

[…] that can overwhelm even the most well-intentioned taxpayer. Just spend a couple of minutes watching this video if you don’t believe […]
on May 7, 2012 at 7:10 am Open letter to President Obama (Part 72) « HaltingArkansasLiberalswithTruth

[…] it is tax-filing season and we all want to honor our wonderful tax system, let’sgo into the archives and show this video from last year about the onerous compliance costs of the internal revenue […]
on April 17, 2012 at 8:51 am It’s tax filing day in Form Nation – New HR Block blog offers tax tips for U.S. citizens abroad | The Isaac Brock Society

[…] here to read comments about this video. PAYING tax always hurts. But America’s tax code seems designed […]
on April 16, 2012 at 5:29 pm New HR Block blog offers tax tips for U.S. citizens abroad – As goes “Form Nation” so grows HR Block! « Renounce U.S. Citizenship – Be Free

[…] here to read comments about this video. PAYING tax always hurts. But America’s tax code seems designed […]
on March 1, 2012 at 2:50 pm IRS Commissioner Bumps into Reality, Learns Nothing and Wants to Make the Tax System Worse | MTR

[…] that’s not surprising. Mr. Shulman oversees a bureaucracy with about 100,000 employees (bigger than the FBI, CIA, and DEA combined), and they obviously wouldn’t want the type of […]
on February 29, 2012 at 10:18 am IRS Commissioner Bumps into Reality, Learns Nothing and Wants to Make the Tax System Worse « International Liberty

[…] that’s not surprising. Mr. Shulman oversees a bureaucracy with about 100,000 employees (bigger than the FBI, CIA, and DEA combined), and they obviously wouldn’t want the type of […]
on February 25, 2012 at 12:11 am The result of having lots of taxes is the mean IRS. « HaltingArkansasLiberalswithTruth

[…] it is tax-filing season and we all want to honor our wonderful tax system, let’sgo into the archives and show this video from last year about the onerous compliance costs of the internal revenue […]
on February 23, 2012 at 12:09 am Minimum wage could be eliminating jobs « HaltingArkansasLiberalswithTruth

[…] the blame. In this Center for Freedom and Prosperity video, a former intern of mine (continuing a great tradition) explains that politicians destroyed jobs when they increased the minimum wage by more than 40 […]
on December 13, 2011 at 12:39 pm Consumer spending is caused by growth of economy « HaltingArkansasLiberalswithTruth

[…] may recognize Hiwa. She narrated a very popular video earlier this year on the nightmare of income-tax complexity. Daniel J. Mitchell • November 29, 2010 @ 10:56 am GA_googleAddAttr("AdOpt", "1"); […]
on November 28, 2011 at 12:21 pm Notwithstanding Media Coverage of Black Friday, Consumer Spending Does Not Drive Economy « International Liberty

[…] Hiwa also narrated this video on IRS complexity. […]
on November 9, 2011 at 2:40 pm Consumer spending is caused by growth of economy « HaltingArkansasLiberalswithTruth

[…] may recognize Hiwa. She narrated a very popular video earlier this year on the nightmare of income-tax complexity. Daniel J. Mitchell • November 29, 2010 @ 10:56 am LD_AddCustomAttr("AdOpt", "1"); […]
on October 31, 2011 at 2:44 pm The psychic, finincial and live costs of complying with the Internal Revenue Code | Renounce U.S. Citizenship and Rejoice

[…] here to read comments about this […]
on October 10, 2011 at 6:54 am The result of having lots of taxes is the mean IRS. « HaltingArkansasLiberalswithTruth

[…] it is tax-filing season and we all want to honor our wonderful tax system, let’s go into the archives and show this video from last year about the onerous compliance costs of the internal revenue […]
on October 5, 2011 at 1:40 pm Consumer spending is caused by growth of economy « HaltingArkansasLiberalswithTruth

[…] may recognize Hiwa. She narrated a very popular video earlier this year on the nightmare of income-tax complexity. Daniel J. Mitchell • November 29, 2010 @ 10:56 am Like this:LikeBe the first to like this post. […]
on October 3, 2011 at 10:14 pm The result of having lots of taxes is the mean IRS « HaltingArkansasLiberalswithTruth

[…] it is tax-filing season and we all want to honor our wonderful tax system, let’s go into the archives and show this video from last year about the onerous compliance costs of the internal revenue […]
on October 3, 2011 at 10:11 pm Minimum wage could be eliminating jobs « HaltingArkansasLiberalswithTruth

[…] the blame. In this Center for Freedom and Prosperity video, a former intern of mine (continuing a great tradition) explains that politicians destroyed jobs when they increased the minimum wage by more than 40 […]
on September 18, 2011 at 12:29 pm IRS Humor (though We Shouldn’t Give the Bureaucrats any Ideas) « International Liberty

[…] you want to move from humor to real-world tragedy, watch this video on IRS complexity. LD_AddCustomAttr("AdOpt", "0"); LD_AddCustomAttr("Origin", "other"); […]
on June 14, 2011 at 9:08 am Fist A Goat.com » The National Debt is Huge, but Unfunded Liabilities Are America’s Real Red-Ink Challenge

[…] University and a former Cato Institute intern. If this video is anywhere near as successful as the other video narrated by a former Cato intern, perhaps this will become a new tradition. That won’t be good for my video career, but I […]
on May 26, 2011 at 6:27 pm The Compliance Costs of the Internal Revenue Code | tomllewis

[…] via Dan Mitchell […]
on April 19, 2011 at 12:19 pm The IRS: Even Worse Than You Think | Cato @ Liberty

[…] it is tax-filing season and we all want to honor our wonderful tax system, let’s go into the archives and show this video from last year about the onerous compliance costs of the internal revenue […]
on April 18, 2011 at 11:11 am The IRS: Even Worse Than You Think « Sago

[…] it is tax-filing season and we all want to honor our wonderful tax system, let’s go into the archives and show this video from last year about the onerous compliance costs of the internal revenue […]
on April 17, 2011 at 10:59 pm The IRS: Even Worse Than You Think « The Market Center Blog

[…] it is tax-filing season and we all want to honor our wonderful tax system, let’s go into the archives and show this video from last year about the onerous compliance costs of the internal revenue […]
on April 17, 2011 at 6:31 pm The IRS: Even Worse Than You Think | 99ers Unemployment Extension

[…] it is tax-filing season and we all want to honor our wonderful tax system, let’s go into the archives and show this video from last year about the onerous compliance costs of the internal revenue […]
on April 17, 2011 at 6:15 pm The IRS: Even Worse Than You Think | Conservatives for America

[…] it is tax-filing season and we all want to honor our wonderful tax system, let’s go into the archives and show this video from last year about the onerous compliance costs of the internal revenue […]
on April 17, 2011 at 5:00 pm » The IRS: Even Worse Than You Think - Big Government

[…] it is tax-filing season and we all want to honor our wonderful tax system, let’s go into the archives and show this video from last year about the onerous compliance costs of the internal revenue […]
on April 17, 2011 at 9:28 am The IRS: Even Worse Than You Think « International Liberty

[…] it is tax-filing season and we all want to honor our wonderful tax system, let’s go into the archives and show this video from last year about the onerous compliance costs of the internal revenue […]
on April 11, 2011 at 8:20 pm Reckless IRS Regulation Would Put Foreign Tax Law over American Tax Law and Drive Investment out of the United States « The Market Center Blog

[…] 11, 2011 by Dan Mitchell I’m not a big fan of the IRS, but usually I blame politicians for America’s corrupt, unfair, and punitive tax system. […]
on April 11, 2011 at 11:15 am Reckless IRS Regulation Would Put Foreign Tax Law over American Tax Law and Drive Investment out of the United States | Cato @ Liberty

[…] not a big fan of the IRS, but usually I blame politicians for America’s corrupt, unfair, and punitive tax system. […]
on April 11, 2011 at 10:26 am xeamtxfbg

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on April 11, 2011 at 8:46 am Reckless IRS Regulation Would Put Foreign Tax Law over American Tax Law | Conservatives for America

[…] not a big fan of the IRS, but usually I blame politicians for America’s corrupt, unfair, and punitive tax system. […]
on April 11, 2011 at 8:34 am Reckless IRS Regulation Would Put Foreign Tax Law over American Tax Law and Drive Investment out of the United States « Sago

[…] not a big fan of the IRS, but usually I blame politicians for America’s corrupt, unfair, and punitive tax system. […]
on April 11, 2011 at 8:21 am » Reckless IRS Regulation Would Put Foreign Tax Law over American Tax Law - Big Government

[…] not a big fan of the IRS, but usually I blame politicians for America’s corrupt, unfair, and punitive tax system. […]
on April 11, 2011 at 8:07 am Reckless IRS Regulation Would Put Foreign Tax Law over American … | IRS

[…] not a large fan of a IRS, yet customarily we censure politicians for America’s corrupt, unfair, and punitive taxation […]
on April 11, 2011 at 5:55 am Reckless IRS Regulation Would Put Foreign Tax Law over American Tax Law and Drive Investment out of the United States « International Liberty

[…] 11, 2011 by Dan Mitchell I’m not a big fan of the IRS, but usually I blame politicians for America’s corrupt, unfair, and punitive tax system. […]
on April 8, 2011 at 10:51 pm Honey

jGWhGL Very true! Makes a change to see someone spell it out like that. 🙂
on February 18, 2011 at 3:47 am Time to Get Rid of the Corporate Income Tax? « Double Taxed

[…] approach would get rid of double taxation, so the economic benefits would be identical. But the compliance costs of taxing income at the corporate level (requiring a relatively small number of tax returns) are […]
on February 18, 2011 at 3:45 am Time to Get Rid of the Corporate Income Tax? « The Market Center Blog

[…] approach would get rid of double taxation, so the economic benefits would be identical. But the compliance costs of taxing income at the corporate level (requiring a relatively small number of tax returns) are […]
on February 14, 2011 at 5:40 pm The IRS: Incompetence on Steroids « The Market Center Blog

[…] but that money obviously is not being put to good use. The time has come to downsize the IRS. This video provides plenty of […]
on February 12, 2011 at 10:26 am The IRS: Incompetence on Steroids « Sago

[…] but that money obviously is not being put to good use. The time has come to downsize the IRS. This video provides plenty of […]
on February 11, 2011 at 7:29 pm The IRS: Incompetence on Steroids « International Liberty

[…] but that money obviously is not being put to good use. The time has come to downsize the IRS. This video provides plenty of […]
on February 10, 2011 at 3:43 pm Mertensv16

Rural:

The 1861 tax was never held to be unconstitutional, and the 1862 tax wasn’t limited to the sin taxes but covered income as well. The 1864 version of the tax, which also taxed income, was held to be constitutional in Springer v. U.S., 102 U.S. 586 (1881), in which the Supreme Court held the tax to be in the nature of an excise or duty and rejected the argument that it was an unapportioned direct tax.

The sole reason the 16th Amendment was necessary was to overcome the 1895 Pollock decision, in which the Supreme Court in striking down the 1894 Tax Act held that a tax on investment income was a direct tax that had to be aportioned. Dicta in the decision indicated that a tax on personal earnings was perfectly valid, but the Court was unwilling to allow a severance of the unconstitutional portion of the Act.
on February 10, 2011 at 12:11 pm ruralcounsel

Mertensv16: The 1861 tax act was on income and real property. It was ruled unconstitutional, because it failed the apportionment requirement. No income tax was ever collected under the 1861 act, and all real property tax was eventually returned.

Another act was passed in 1862, creating the Commisioner of Internal Revenue. It primarily taxed beer, liquor, and tobacco. The Feds kept trying to find a way to tax individual income, but kept running afoul of the Constitution’s Article I, Section 2, Clause 3 and Section 9, Clause 4.

The modern income tax is credited to the 1913 tax created after Constitutional amendment with the 16th Amendment allowed it to get around the apportionment issue.

So, it all hinges on what you mean by “created”.
on February 9, 2011 at 3:08 pm Mertensv16

The federal income tax was created in 1861, not 1913 as stated in the video.
on February 9, 2011 at 8:00 am Tax Lawyers, Tax Complexity, and the Broader Problem of a Self-Serving Legal Profession | Cato @ Liberty

[…] Internal Revenue Code is nightmarishly complex, as illustrated by this video. Americans spend more than 7 billion hours each year in a hopeless effort to figure out how to deal […]
on February 6, 2011 at 9:17 pm Do The Lawyers Who Write The Tax Code Benefit From Making It Complex? | E-Commerce Center

[…] internal revenue code is nightmarishly complex, as illustrated by this video. Americans spend more than 7 billion hours each year in a hopeless effort to figure out how to deal […]
on February 4, 2011 at 5:17 pm Tax Lawyers, Tax Complexity, and the Broader Problem of a Self-Serving Legal Profession « Sago

[…] internal revenue code is nightmarishly complex, as illustrated by this video. Americans spend more than 7 billion hours each year in a hopeless effort to figure out how to deal […]
on February 3, 2011 at 11:27 pm KC Greg

A flat tax hits “reset”, but still leaves room for drift back to where we are today, and tax cheats still fly under the radar. The Fair Tax is a paradigm shift that gets the IRS off the backs of citizens, and forces tax cheats to pay.
on February 3, 2011 at 2:24 pm » Tax Lawyers, Tax Complexity, and the Broader Problem of a Self-Serving Legal Profession - Big Government

[…] internal revenue code is nightmarishly complex, as illustrated by this video. Americans spend more than 7 billion hours each year in a hopeless effort to figure out how to deal […]
on February 3, 2011 at 1:08 pm Tax Lawyers, Tax Complexity, and the Broader Problem of a Self-Serving Legal Profession | Think Tank West

[…] Internal Revenue Code is nightmarishly complex, as illustrated by this video. Americans spend more than 7 billion hours each year in a hopeless effort to figure out how to deal […]
on February 3, 2011 at 10:27 am Tax Lawyers, Tax Complexity, and the Broader Problem of a Self-Serving Legal Profession « International Liberty

[…] internal revenue code is nightmarishly complex, as illustrated by this video. Americans spend more than 7 billion hours each year in a hopeless effort to figure out how to deal […]
on January 24, 2011 at 1:01 am Conservative News from Conservative Bloggers » Blog Archive » The IRS Run Amok

[…] I try not to demonize the bureaucrats because politicians actually deserve most of the blame for America’s complex, unfair, and corrupt tax system. The IRS generally is in the unenviable position of simply trying to enforce very bad […]
on January 20, 2011 at 1:47 pm The IRS Run Amok « The Market Center Blog

[…] I try not to demonize the bureaucrats because politicians actually deserve most of the blame for America’s complex, unfair, and corrupt tax system. The IRS generally is in the unenviable position of simply trying to enforce very bad […]
on January 20, 2011 at 12:25 pm The IRS Run Amok « Sago

[…] I try not to demonize the bureaucrats because politicians actually deserve most of the blame for America’s complex, unfair, and corrupt tax system. The IRS generally is in the unenviable position of simply trying to enforce very bad […]
on January 18, 2011 at 3:21 pm The IRS Run Amok | Cato @ Liberty

[…] I try not to demonize the bureaucrats because politicians actually deserve most of the blame for America’s complex, unfair, and corrupt tax system. The IRS generally is in the unenviable position of simply trying to enforce very bad […]
on January 18, 2011 at 3:01 pm The IRS Run Amok | Conservatives for America

[…] I try not to demonize the bureaucrats because politicians actually deserve most of the blame for America’s complex, unfair, and corrupt tax system. The IRS generally is in the unenviable position of simply trying to enforce very bad […]
on January 18, 2011 at 9:12 am The IRS Run Amok « International Liberty

[…] I try not to demonize the bureaucrats because politicians actually deserve most of the blame for America’s complex, unfair, and corrupt tax system. The IRS generally is in the unenviable position of simply trying to enforce very bad […]
on January 18, 2011 at 3:19 am You Be the Judge: Which Example of Tax Collectors Running Amok Is Worse? « The Market Center Blog

[…] routinely make life hard for taxpayers. The IRS, for example, is a rather brutal bureaucracy, as explained in this video. But I’m not sure the IRS can match either of these two examples of reprehensible taxation. And […]
on January 16, 2011 at 10:20 am You Be the Judge: Which Example of Tax Collectors Running Amok Is Worse? « International Liberty

[…] routinely make life hard for taxpayers. The IRS, for example, is a rather brutal bureaucracy, as explained in this video. But I’m not sure the IRS can match either of these two examples of reprehensible taxation. […]
on December 10, 2010 at 4:21 pm The Barack Obama Tax Reform Plan? « The Market Center Blog

[…] inefficient decisions just for tax purposes. And simplification could have a profound impact on cleaning up the horrible mess at the IRS. Moreover, a plan that trades lower tax rates for fewer tax distortions would be a welcome change […]
on December 10, 2010 at 10:08 am The Barack Obama Tax Reform Plan? « International Liberty

[…] inefficient decisions just for tax purposes. And simplification could have a profound impact on cleaning up the horrible mess at the IRS. Moreover, a plan that trades lower tax rates for fewer tax distortions would be a welcome change […]
on November 30, 2010 at 5:47 am Gordon

re: Janet’s comment — no Ms. Alaghebandian does not look like a bimbo; she looks (and sounds) like a intelligent, passionate advocate for less government and more freedom.

Rather than yet another stuffed shirt (not taking a swipe at ya Dan, honest!), we have a young, vibrant, and beautiful spokesperson engaging a new generation.

We can’t just sell the steak; to be successful, we have to sell the sizzle as well.

I hope to see many more video presentations from Ms. Alaghebandian.

Gordon.
on November 29, 2010 at 8:41 am A Long-Overdue Debunking of Keynesian Economics « International Liberty

[…] You may recognize Hiwa. She narrated a very popular video earlier this year on the nightmare of income-tax complexity. […]
on September 21, 2010 at 10:01 pm New Orwellian Tax Scheme in England Would Require all Paychecks Go Directly to the Tax Authority « The Market Center Blog

[…] 21, 2010 by Dan Mitchell Our tax system in America is an absurd nightmare, but at least we have some ability to monitor what is happening. We can’t get too aggressive […]
on September 21, 2010 at 2:29 pm New Orwellian Tax Scheme in England Would Require all Paychecks Go Directly to the Tax Authority « International Liberty

[…] 21, 2010 by Dan Mitchell Our tax system in America is an absurd nightmare, but at least we have some ability to monitor what is happening. We can’t get too aggressive […]
on June 15, 2010 at 3:51 pm Minimum Wage Hikes Deserve Share Of Blame For High Unemployment « Faulk For Congress

[…] for Freedom and Prosperity video, a former intern of mine at the Cato Institute (continuing a great tradition) explains that politicians destroyed jobs when they increased the minimum wage by more than 40 […]
on June 15, 2010 at 9:24 am How Couldn’t The Left Know This Would Happen? | The Voice of Merrill

[…] for Freedom and Prosperity video, a former intern of mine at the Cato Institute (continuing a great tradition) explains that politicians destroyed jobs when they increased the minimum wage by more than 40 […]
on June 15, 2010 at 8:28 am » Minimum Wage Hikes Deserve Share of Blame for High Unemployment - Big Government

[…] for Freedom and Prosperity video, a former intern of mine at the Cato Institute (continuing a great tradition) explains that politicians destroyed jobs when they increased the minimum wage by more than 40 […]
on May 10, 2010 at 12:13 pm » The National Debt is Huge, but Unfunded Liabilities Are America’s Real Red-Ink Challenge - Big Government

[…] University and a former Cato Institute intern. If this video is anywhere near as successful as the other video narrated by a former Cato intern, perhaps this will become a new tradition. That won’t be good for my video career, but I […]
on May 10, 2010 at 9:00 am The National Debt is Huge, but Unfunded Liabilities Are America’s Real Red-Ink Challenge « International Liberty

[…] University and a former Cato Institute intern. If this video is anywhere near as successful as the other video narrated by a former Cato intern, perhaps this will become a new […]
on April 17, 2010 at 8:49 am Video on IRS Complexity « Thomas Jefferson Club Blog

[…] Economics 101 […]
on April 16, 2010 at 11:17 pm mavsays

This is exactly why so many Americans now want to scrap the IRS and the current tax systems and replace it all with the Fair Tax… Check it out and get the book at http://www.fairtax.org It’s fantastic and will put an end to the Polititians in Washington pitting Americans against each other with Class Warfare…
on April 12, 2010 at 12:57 pm Taxes: the cost of compliance « Public Secrets

[…] (via Dan Mitchell) […]
on April 12, 2010 at 10:51 am Julia

Good message, but her outfit makes her look like a bimbo. Look like a professional!
on April 12, 2010 at 9:32 am Bob

I agree with her analysis,,, but please,,,FAIRTAX NOT FLAT TAX!

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