Was a UFO Found at the Bottom of the Baltic Sea?
On 10 December 2014, the web site Earth We Are One published an article claiming a UFO shaped like the Millennium Falcon from Star Wars had been discovered at the bottom of the Baltic Sea: article  The divers exploring a 'UFO-shaped' object at the bottom of the Baltic Sea say their equipment stops working when they approach within 200 meters of the object. Professional diver Stefan Hogerborn, part of the Ocean X team which is exploring the anomaly, said some of the teams' cameras and satellite phones would refuse to work when directly above the object, and would only work once they had sailed away. He is quoted as saying: "Anything electric out there, and the satellite phone as well, stopped working when we were above the object. And then when we got away about 200 meters, it turned on again, and when we got back over the object it didn't work." Hefty trajectory: The Swedish diving team noted a 985-foot flattened out 'runway' leading up to the object, implying that it skidded along the path before stopping but no true answers to this are clear. "I was kind of prepared just to find a stone or cliff or outcrop or pile of mud but it was nothing like that, so for me it has been a missing experience I must say." Member Dennis Asberg said: "I am one hundred percent convinced and confident that we have found something that is very, very, very unique." "Is it a meteorite or an asteroid? Or a volcano? Or a base from say, a U-boat from the Cold War which has manufactured and placed there? Or if it is a UFO? Well, honestly, it has to be something." The article published by Earth We Are One in December of 2014 was a repurposed version of a story published by the UK newspaper Daily Mail in June 2012. Although both articles dealt with a real discovery by the shipwreck hunting team Ocean X, experts have since weighed in and determined the object found on the bottom of the Baltic Sea was not an alien spaceship.  published Rumors about the Baltic Sea UFO began circulating after Ocean X returned from an expedition in the summer of 2011 with an interesting sonar image. The group paid a follow-up visit to the site the following year to get a better look at the object, but due to mysterious (and convenient) electrical interference, Ocean X was not able to get a good look at the submerged anomaly. Expedition leader Peter Lindberg did, however, claim he had found a second object: "I confirm that we have found two anomalies. We did find the other anomaly approximately 200 meters (about 219 yards) from the circular find at the same sonar run." Lindberg explained why his team had not released the sonar image of the second object: "We decided not to expose that anomaly so much because there is a lot of disturbance on the sonar image when we passed it, so it's very blurry. We can see it's something but to an untrained eye it might just look like 'pea soup.'" Neither of these sonar images, however, provided a reliable look at the Baltic Sea anomaly. First, the Ocean X team used an inexpensive sonar technique called side-scan sonar which, although well-suited for finding shipwrecks, it is not designed to give a detailed look at the sea floor. Second, according to Hanumant Singh, a researcher with the Woods Hole Oceanographic Institute, the sonar they used wasn't properly calibrated: side-scan sonar sonar If you look carefully, you can see a reflection of the circular formation on the right side of the image. Since side-scan sonar is taken with two instruments that bounce acoustic waves in opposite directions from the boat, a feature on one side shouldn't affect the image on the other side. "This means you've got 'cross-talk,' in which one channel is electrically contaminating the other," Singh says. In other words, the sonar instruments aren't wired properly. Strike one, he says.  Strike two: The black horizontal lines going through the image show that sonar signals are dropping out (that is, the instruments aren't detecting them), further calling the measurements into question, Singh says. Finally, he says, the edges of the image, just beyond the circular formation, are gray, meaning the sonar couldn't tell what was there. That shows the sonar isn't calibrated well enough to trust, Singh says. "That's strike three." With only a single blurry image and little information, many people speculated the object at the bottom of the Baltic Sea could be a UFO, a portal into another world, or an underwater Stonehenge. These theories received more attention when artist Hauke Vagt created a 3D interpretation of the mysterious object: artist  Scientists, however, have less fantastical theories about what lies at the bottom of the Baltic. Charles Paull, senior scientist at the Monterey Bay Aquarium Research Institute in Moss Landing, California, said the anomaly is probably just a rock outcropping or the result of gas venting from the seafloor.  Other experts argue it is merely a glacial depost.  Even Peter Lindberg, the man behind the discovery, expressed skepticism about the object's supposed otherworldly origins: "It's not obviously an alien spacecraft. It's not made of metal." experts skepticism Team Ocean X's discovery created a stir due to the fact that they could not identify the object at the bottom of the Baltic Sea, not because any evidence supported the idea it was a UFO.  Popular Mechanics. Wolchover, Natalie.  "Mysterious Baltic Sea Object Is a Glacial Deposit."
  Live Science.  30 August 2012.
 Piui, Tibi.  "So Called Baltic Sea 'UFO' Mystery Solved, Other Questions Arise." 
  ZME Science.  18 June 2012.
On 2 June 2015, New York firefighter Michael O'Connell took to Facebook to ask social media users for help in locating a helmet that had been stolen from his house a few years prior. O'Connell posted a photograph of his son with the helmet and explained that he had worn it throughout his FDNY career, including during 9/11 and its aftermath: Facebook   This was my FDNY helmet I wore my entire career including 9/11/01. It was stolen from my home a while back. I know it's a long shot but if enough people share maybe it turns up or is sent back so I can keep it in my family! Thanks! The NYC Wire Fire Facebook page helped spread O'Connell's message by resharing his post with the caption, "In case anyone comes across this ... maybe the thief is stupid enough to try to sell on eBay." Within a week, the message reportedly reached more than 8 million people and had been reshared hundreds of thousands of times. Unfortunately, despite the wide dissemination of this Facebook post, it did not result in the return of O'Connell's FDNY helmet. Facebook reportedly AM New York reported on 24 June 2015, a few weeks after the Facebook post went viral, that while O'Connell had not been reunited with his helmet, he did receive an outpouring of support from the community and two replica helmets from "good Samaritans hoping to sooth the sting" of his loss: reported Retired firefighter Michael O'Connell's social media campaign to retrieve his stolen FDNY helmet has gotten him the next best thing -- two replicas thanks to some good Samaritans. "There are still amazing people in this world!," O'Connell said. O'Connell, 39, recently turned to Facebook to track down the significant memento that he wore at Ground Zero following 9/11 and hoped to leave to his three children. What came back instead were two painstakingly created replica helmets from good Samaritans hoping to soothe the sting of his loss and an avalanche of human kindness and compassion. "I'm taking the good out of this story, not the bad," said O'Connell, who was forced to retire from the FDNY after being diagnosed with sarcoidosis, an inflammatory disease that attacks the lungs and lymphatic system, in 2007. "We live in an amazing world. So many people are willing to help. I hope people recognize this more than all the hate out there," he said. Although this FDNY firefighter's message was originally posted in June 2015, social media users have continued to share his plea on Facebook over the ensuing years. In April 2019, for example, a screenshot of O'Connell's message that was posted by the "Ramsey, New Jersey Volunteer Fire Department" racked up more than 600,000 shares. Ramsey, New Jersey Volunteer Fire Department When viewers learned that this message was nearly four years old by the time they encountered it in April 2019, they were left wondering if O'Connell had ever been reunited with his firefighter helmet. Unfortunately, that's not the case. O'Connell told us in April 2019: "I appreciate everyones support in this matter. Unfortunately, my helmet was never returned! Hoping that it will make its way back home one day as I am a retired FF who has fallen sick to my work on September 11th and this was the helmet that I wore that day and throughout my career!" Stepansky, Joseph.  "FDNY Firefighter's Helmet Worn During 9/11 Stolen from Long Island Home."
  New York Daily Post.  3 June 2015. Feeney, Sheila Anne.  "Retired FDNY Firefighter Michael O'Connell Searching for 9/11 Helmet."
  AM New York.  3 June 2015. Feeney, Sheila Anne.  "Retired FDNY Smoke Eater Michael O'Connell Receives Two Helmets for the One He Lost."
  AM New York.  24 June 2015. A prank Facebook post that appeared to link to an article reporting that the restaurant chain Whataburger was closing its doors appeared in June 2017:   However, clicking on the link takes you to a fake news story about the restaurant chain's faux announcement on the prank web site Channel22news.com: fake news story The Texas based food chain is shutting its doors effective April 26 due to numerous reports of food poisoning with high concentrations of salmonella found in meat served in the DFW area during the month of April Anyone who has eaten at Whataburger should be tested for salmonella poisoning. Symptoms can show up as many as three weeks out. I doctors [sic] urge all people who have eaten at these restaurants especially in the Dallas-Fort Worth area to immediately seek medical attention if they have eaten there more than once during past few weeks. The more time youve eaten there the higher likelihood of an infection occurring. Lawsuits have already been filed and Whataburger has decided to shut its doors due to the litigation and payouts that it expects to have to make. Filing bankrupt in a downtown Austin courthouse Wataburger spokesman, Jeff smith said We have taken the advice of our counsel and filed Chapter 7 and have shut our doors. It is unclear what the future holds for the Texas based chain. One thing for certain, Allyson Heffernan is sure to be disappointed! Channel22News is clearly labeled with various disclaimers and carries a "you got owned" meme in its header:   We do NOT support FAKE NEWS!!! This is a Prank website that is intended for Fun. Bullying, Violent Threats or posts that Violate Public Order are NOT permitted on this Website. Channel22News, as well as other sites of its ilk, allow users to generate their own fake news stories. These stories are then packaged into social media posts that resemble genuine news items. Because many people share links on social media without actually reading the stories, these "pranks" frequently reach large audiences.  other sites without actually reading  In response to the prank, Whataburger created a Facebook post of their own: Facebook   An article is being circulated stating that Whataburger will be closing all stores. This article is a hoax, and we arent going anywhere.   Dewey, Caitlin.  "6 in 10 of You Will Share This Link Without Reading it, a New, Depressing Study Says."
  Washington Post.  16 June 2016. Claim:  Protest against federal spending encourages Americans to mail tea bags to the White House.  Example:  [Collected via e-mail, March 2009] Mailing Tea Bags to Washington, DC What a wonderful idea, I just wish it had been mine. I have a feeling that USPS is going to have a hell of a lot of tea to contend with, after all it only costs 42 cents to send a message, hopefully heard round the world!!! So please mark your Calendars There's a storm abrewin'. What happens when good, responsible people keep quiet? Washington has forgotten they work for us. We don't work for them. Throwing good money after bad is NOT the answer. I am sick of the midnight, closed door sessions to come up with a plan. I am sick of Congress raking CEO's over the coals while they, themselves, have defaulted on their taxes. I am sick of the bailed out companies having lavish vacations and retreats on my dollar. I am sick of being told it is MY responsibility to rescue people that, knowingly, bought more house than they could afford. I am sick of being made to feel it is my patriotic duty to pay MORE taxes. I, like all of you, am a responsible citizen. I pay my taxes. I live on a budget and I don't ask someone else to carry the burden for poor decisions I may make. I have emailed my congressmen and senators asking them to NOT vote for the stimulus package as it was written without reading it first. No one listened. They voted for it, pork and all. O.K. folks, here it is. You may think you are just one voice and what you think won't make a difference. Well, yes it will and YES, WE CAN!! If you are disgusted and angry with the way Washington is handling our taxes. If you are fearful of the fallout from the reckless spending of BILLIONS to bailout and "stimulate" without accountability and responsibility then we need to become ONE, LOUD VOICE THAT CAN BE HEARD FROM EVERY CITY, TOWN, SUBURB AND HOME IN AMERICA. There is a growing protest to demand that Congress, the President and his cabinet LISTEN to us, the American Citizens. What is being done in Washington is NOT the way to handle the economic free fall. So, here's the plan. On April 1, 2009, all Americans are asked to send a TEABAG to Washington, D.C. You do not have to enclose a note or any other information unless you so desire. Just a TEABAG. Many cities are organizing protests. If you simply search, "New American Tea Party", several sites will come up. If you aren't the 'protester' type, simply make your one voice heard with a TEABAG. Your one voice will become a roar when joined with millions of others that feel the same way. Yes, something needs to be done but the lack of confidence as shown by the steady decline in the stock market speaks volumes. This was not my idea. I visited the sites of the 'New American Tea Party' and an online survey showed over 90% of thousands said they would send the teabag on April 1. Why, April 1?? We want them to reach Washington by April 15. Will you do it? I will. Send it to; 1600 Pennsylvania Ave. Washington, D.C. 20500. Forward this to everyone in your address book. Visit the website for more information about the 'New American Tea Party'. I would encourage everyone to go ahead and get the envelope ready to mail, then just drop it in the mail April 1. Can't guarantee what the postage will be by then, it is going up as we speak, but have your envelope ready. What will this cost you? A little time and a 40 something cent stamp.. What could you receive in benefits? Maybe, just maybe, our elected officials will start to listen to the people. Take out the Pork. Tell us how the money is being spent. We want TRANSPARENCY AND ACCOUNTABILITY. Remember, the money will be spent over the next 4-5 years. It is not too late. Of course, if you agree with the way things are being done now, just delete!!!!! Origins:   On the evening of 16 December 1773, a group of American colonists who called themselves "The Sons of Liberty" furtively boarded the ship Dartmouth, which was docked in Boston harbor with a load of East India Company tea.  Working  through the night, the colonists dumped over 45 tons of tea into the waters of the harbor as a protest against the Tea Act passed by the British government.  The event, which came to be known as "The Boston Tea Party," was one of the seminal events of the American Revolution and remains one of the most iconic moments in all of U.S. history. In 2009, the iconic status of that event was referenced in the name of the New American Tea Party, described as a "coalition of citizens and organizations concerned about the recent trend of fiscal recklessness in government" who have begun coordinating events around the U.S. with the announced goal of protesting largesse in federal spending.   The item quoted above seeks to take up the "Tea Party" spirit by encouraging Americans to mail tea bags to the White House on 1 April 2009 (in order to arrive by 15 April, the day on which income tax filings are due) as a form of symbolic protest against "the way Washington is handling our taxes."  (The concept is vaguely reminiscent of a 1955 campaign that had citizens mailing small bags of wheat to President Eisenhower to encourage the U.S. to provide surplus food to flood victims in China.) New American Tea Party events wheat Of course, everyone is free to choose whether or not to participate in symbolic protests, so such actions don't have much in the way of verifiable "true" or "false" aspects  the only issue is how effective the chosen form of protest is likely to be.  With that in mind, we offer a few caveats for those inclined to participate:  An entry in the New American Tea Party blog states that they don't endorse the effort: entry We have received hundreds of questions about an email circulating that urges folks to send tea to Washington on April 1st or April 15th.  This effort is not endorsed by the New American Tea Party, so we can't answer any questions about it.  Given the more stringent security procedures for mail handling enacted after 9/11, there are no guarantees envelopes containing mailed teabags will get through to the White House without being discarded or significantly delayed, something also noted in the New American Tea Party blog: It is a neat idea, but things like that will likely either be held up getting scanned or end up getting thrown away due to security precautions. (A subsequent New American Tea Party blog entry suggested that just mailing the labels from tea bags might be a way of avoiding this potential pitfall.) entry  Envelopes that cannot be run through USPS sorting machines are subject to an additional 20 postage surcharge. A mailed item is considered  nonmachinable if: nonmachinable  It is a square letter (the minimum size for a square envelope is 5 x 5 inches) It is too rigid  does not bend easily It has clasps, string, buttons, or similar closure devices It has an address parallel to the shorter dimension of the letter It contains items that cause the surface to be uneven The length divided by height is less than 1.3 or more than 2.5  The specific aims of the tea bag protest are not clearly articulated in the e-mail quoted above, so senders might wish to include explanatory notes with their envelopes stating the desired outcome, such as: "I enclose this teabag as a protest against the passage of any further economic stimulus packages that provide money to businesses without provisions for strict transparency and accountability in how that money is to be spent" or  "I enclose this teabag as a protest against the passage of any further economic stimulus packages that include earmarks." Last updated:  12 March 2009    Idaho Statesman.  "Local Group Stages 'Reckless Federal Spending' Protest."   27 February 2009.    WJXT-TV [Jacksonville, FL].  "'Tea Party' Protests Wasteful Spending."   MSNBC.  2 March 2009. Voting in the 2020 U.S. Election may be over, but the misinformation keeps on ticking. Never stop fact-checking. Follow our post-election coverage here. here On Oct. 31 2020, The New York Times reported that the Trump Campaign's fundraising landing page was "now automatically checking a box to create recurring weekly donations from supporters until mid-December." This is true, though the "automatically checked box" development is fairly old news. The Trump Campaign's primary fundraising platform  WinRed  changed the landing page to automatically check the monthly recurring donation option in March 2020. The shift to soliciting for weekly donations occurred in mid-September 2020, with that option also appearing as pre-checked. reported changed March 2020 shift September 2020 The more recent development is the change in when those weekly contributions would stop. Earlier solicitations committed people to donations that would stop automatically recurring on Election Day, Nov. 3 2020. In late October, the text was changed to read "make this a recurring donation until 12/14." It bears mentioning that well before any returns came in on Nov. 3, the campaign encouraged donations as a way to "keep fighting after election day" because "there will be voter fraud like you've never seen." late October Speaking to the Times, Trump campaign spokesperson Tim Murtaugh said that no one would receive a recurring charge without their knowledge and donors could opt out at any time. He argued that funds were needed because "this race will be very close, and it is possible that multiple states will require recounts and potential additional spending from our campaign.  Speaking From a factual standpoint, there is no guarantee that the money goes to fight election-related lawsuits. Some of the money goes to resolving Trump Campaign debt, much of the rest goes to the Republican National Committees' general operating account. Because the Trump Campaign is indeed accepting recurring donations until Dec. 12, and because that option is auto-checked on the campaign's primary fundraising platform, we rank this claim  the money In April 2016, a meme was published by the Facebook page "The Other 98%" (among others) holding that 643,000 Americans declare bankruptcy over medical bills every year, while in a number of other first-world countries, bankruptcies over medical bills are non-existent (due to the implementation of national social health insurance/medical care systems in those other countries):   At the fine print at the bottom of the meme was a citation: "Source: NerdWallet Health Analysis." No link to the specific analysis referenced was provided, but presumably the item in question was a 19 July 2013 item published by NerdWallet pertaining to medical bankruptcies. However, in that analysis NerdWallet repeatedly stated that their findings were "estimates" or "extrapolations," and some of their data were quite old even back in 2013. The primary portion of that article held that: In 2013 over 20% of American adults are struggling to pay their medical bills, and three in five bankruptcies will be due to medical bills. While we are quick to blame debt on poor savings and bad spending habits, our study emphasizes the burden of health costs causing widespread indebtedness. Medical bills can completely overwhelm a family when illness strikes, says Christina LaMontagne, VP of Health at NerdWallet. Furthermore, 25 million people hesitate to take their medications in order to control their medical costs. Unfortunately this can lead to even worse financial outcomes as preventative treatments are not rendered and patients end up using expensive ambulance and ER care as their health worsens. Finally, many question whether President Obamas universal health insurance mandate will protect Americans from problems with medical bills. Insurance is no silver bullet, says LaMontagne. Even with insurance coverage, we expect 10 million Americans will face bills they are unable to pay. Although the "643,000" figure didn't expressly appear in that article, if we take the number of bankruptcy filings in the U.S. in 2013 (1,032,236) and apply NerdWallet's statement that "three in five (60%) bankruptcies will be due to medical bills," then we arrive at a number of medical bill-related bankruptcies (619,342) reasonably close to the 643,000 figure (although technically a bankruptcy filing can represent more than one person). bankruptcy Likewise, a 2013 CNBC item based on the 2013 NerdWallet Health Analysis included a chart showing the estimated total number of medical-related bankruptcies in the U.S. in 2013 to be 646,812, which is also quite close to the cited 643,000 figure: item  Since the number of bankruptcy filings in the U.S. is a matter of public record, the accuracy of this figure hinges on how reliable is the estimate that 60% of those filings are medical-related. In NerdWallet's "Methodology & Sources" section, the site said their medical bankruptcy estimates were based on a 2009 Harvard study, which in turn used bankruptcy data from 2007 and involved interviewing a random national sample of a bankruptcy filers: BACKGROUND: Our 2001 study in 5 states found that medical problems contributed to at least 46.2% of all bankruptcies. Since then, health costs and the numbers of un- and underinsured have increased, and bankruptcy laws have tightened. METHODS: We surveyed a random national sample of 2314 bankruptcy filers in 2007, abstracted their court records, and interviewed 1032 of them. We designated bankruptcies as medical based on debtors stated reasons for filing, income loss due to illness, and the magnitude of their medical debts. RESULTS: Using a conservative definition, 62.1% of all bankruptcies in 2007 were medical. NerdWallet themselves reported that they employed a more conservative estimate than the Harvard study figure regarding the proportion of bankruptcies that are medical-related: We relied on a widely cited Harvard study published in 2009. NerdWallet Health chose to include only bankruptcy explicitly tied to medical bills, excluding indirect reasons like lost work opportunities. Thus we conservatively estimated medical bankruptcy rates to be 57.1% (versus the authors 62.1%) of US bankruptcies. We also used official bankruptcy statistics, released this month through March 2013, from US Courts. Still, quantifying the occurrence of medical bankruptcies can be problematic, as noted in aJanuary 2016 New York Times article on the subject: article Research on medical bankruptcies has been controversial because it can be hard to untangle how medical bills fit into a familys overall pattern of financial troubles. Twenty-nine percent of the people with medical bill problems said a family member had been forced to stop working or cut back on hours. (On the other side, about 41 percent of people said theyd taken on extra work to help pay bills.) Is that a job problem or a medical bill problem? said David Himmelstein, a professor of public health at the City University of New Yorks Hunter College School of Public Health who has studied medical bankruptcies. Its both of those things. However, that article also factored in a large development that occurred after NerdWallet's 2013 analysis: the activation of major provisions of the Patient Protection and Affordable Care Act (also known as PPACA, ACA, or Obamacare): The [ACA] has led to a decline in the number of Americans suffering financial stress from health problems, thanks to the new options for receiving coverage, especially for the poor. But the problem is still widespread, touching roughly a quarter of Americans under 65, when the insured and uninsured are looked at together. Americans older than 65 are covered by Medicare, which more frequently protects people from major financial trouble. Unlike other polls, which have focused on the ways that insurance affects health care, the new Times-Kaiser survey explored the effects of medical bills on peoples daily lives well beyond the medical system. We found that medical bills dont just keep people from filling prescriptions and scheduling doctors visits. They can also prompt deep financial and personal sacrifices, affecting their housing, employment, credit and daily lives. The potentially ameliorating effect of the ACA on bankruptcies was also cited by a July 2015 Wall Street Journal article which (in part) described research into medical bankruptcy done by Northeastern University law professor Daniel Austin: article So what does Prof. Austin think will happen with mandatory health care in all 50 states? Could the system designed to give people access to affordable health insurance make families more financially stable and keep them out of bankruptcy? It absolutely should show a reduction in bankruptcies [filed] due to medical debt, Prof. Austin said in an interview. Plenty of studies have pinpointed medical debt as the No. 1 reason why people turn to bankruptcy for a fresh start. In rallying for health-care reform in his 2009 State of the Union address, President Barack Obama said that 62.1% of consumer bankruptcies are medical bankruptcies, citing a study Sen. Elizabeth Warren (D., Mass.) co-wrote as a Harvard law professor. Prof. Austins study found the percentage of medical bankruptcies to be far smaller. Overall, 18% to 25% of personal bankruptcies filed in the U.S. were prompted by medical debt.  But even prior to the implementation of the ACA, some sources questioned the true impact of medical debt on bankruptcy rates. A 2012 piece published by The Hill compared rates of bankruptcy between the United States and Canada (the latter a country with single-payer healthcare system): compared It's difficult to conclude that bankrupt folks are awash in healthcare debt when nearly 90 percent of their obligations are unrelated to health care ... Will ObamaCare's increased regulation of the healthcare marketplace help put an end to the phenomenon? Data from countries with government-run healthcare systems suggest not. Consider Canada. Our neighbor to the north features a government-run, single-payer healthcare system where private insurance is outlawed for procedures covered under the law. So you'd think that Canada would have a lower rate of bankruptcy than the United States, what with one big potential cause of bankruptcy  the cost of health care  absorbed by the government. But according to researchers at the Fraser Institute, a nonpartisan Canadian think tank, bankruptcy rates are statistically the same on both sides of the 49th parallel. In both the United States and Canada, less than one-third of 1 percent of families file for bankruptcy each year. Further, even with a socialized healthcare system, some Canadians go bankrupt because of medical expenses. Approximately 15 percent of bankrupt Canadian seniors  those 55 and older  cited medical reasons, including uninsured expenses, as the main culprit for their insolvency. Canada wasn't the only country in which the presence of single-payer healthcare reportedly wasn't a total shield against bankruptcies (medical-related or otherwise). A 2010 World Health Organization (WHO) paper [PDF] found that: PDF Outside of the US, research on links between over-indebtedness and health has been quite limited to date, consisting largely of rankings of factors in consumer debt. For instance, within the United Kingdom, sickness or disability accounted for 5% of households in financial difficulties in 2002. A ranking of causes of over-indebtedness and private bankruptcy in Germany found that psychological problems and own sickness, if added together, would rank in fourth place of reasons for over-indebtedness and private bankruptcy. There have been a number of interesting recent studies in Germany on the subject. These have found a high risk of mental disorders among those facing the threat of over-indebtedness as well as the association of over-indebtedness with an increased prevalence of overweight and obesity apart from traditional socioeconomic factors. Additionally, there is evidence that over-indebted persons refrain from seeking medical treatment or purchasing prescriptions even under Germanys health system. One-third of participants in a study of insolvency counseling services in RhinelandPalatinate indicated that their financial difficulties were a result of accident, illness or addiction. In short, using some very specific analyses, one could make the case that (at least within the last several years) about 643,000 Americans declared bankruptcy annually due to medical bills. But the accuracy of those analyses is open to question, the playing field has changed significantly since they were undertaken (due to the implementation of the ACA), and it's far from an absolute that the other countries listed in the meme experience zero medical-related bankruptcies.  Emami, Sarah.  "Consumer Over-Indebtedness and Health Care Costs:
How to Approach the Question from a Global Perspective."
  World Health Report (2010) Background Paper, 3.  2010. Himmelstein, David U. et. al.  "Medical Bankruptcy in the United States, 2007: Results of a National Study."
  American Journal of Medicine.  12 April 2009. Lamontagne, Christina.  "NerdWallet Health Finds Medical Bankruptcy Accounts for Majority of Personal Bankruptcies."
  NerdWallet.  19 June 2013. Lamontagne, Christina.  "NerdWallet Health Finds Medical Bankruptcy Accounts for Majority of Personal Bankruptcies."
  NerdWallet.  26 March 2014. Luthra, Shefali.  "Consumers Still Struggling with Medical Debt."
  USA Today.  1 February 2015. Mangan, Dan.  "Medical Bills Are the Biggest Cause of US Bankruptcies: Study."
  CNBC.  25 June 2013. Pipes, Sally C.  "Medical Bankruptcy: Fact or Fiction?"
  The Hill.  23 October 2012. Sanger-Katz, Margot.  "Even Insured Can Face Crushing Medical Debt, Study Finds."
  Thne New York Times.  5 January 2016. Stech, Katy.  "The Future of Personal Bankruptcy in a Post-Obamacare World."
  The Wall Street Journal.  1 July 2015. Office of the Superintendent of Bankruptcy.  "Growing Old Gracefully, An Investigation Into the Growing Number of Bankrupt Canadians Over Age 55."
  31 March 2006. Amid national debates about income inequality and tax cuts for the ultra-rich, one talking point is frequently highlighted in online memes and by political figures such as Bernie Sanders is that online retailing giant Amazon.com, despite taking in $5.6 billion in profit in 2017, paid no federal corporate income taxes for that year: Bernie Sanders   (With respect to the claim about Amazon employees on welfare, see our fact check on that topic here.) here In regards to U.S. federal income taxes, the claim that Amazon paid none in 2017 is almost certainly factual. While Amazons tax filings are not public, their SEC filing for the year 2017 illustrates that the company used the tax code expertly (and legally) to their advantage, so well that the company anticipated a $137 million tax refund from the federal government (numbers are in millions of dollars): SEC filing   Amazon did pay taxes to individual U.S. states ($211 million) and to international jurisdictions ($724 million), but their federal income tax burden was (less than) zero. The filings indicate that two factors provided the lion share of Amazons reduced federal tax liability: $220 million worth of tax credits, and $917 million in tax-deductible executive pay derived from the sale of stocks:   The third negative item in the SEC filing, $789 million in reduced tax burden as a result of the 2017 Tax Act, will be applied to future tax years, according to a report from the Institute on Taxation and Economic Policy. report SEC filings do not require a company to list the specific credits they utilize, but there are several avenues Amazon would likely have pursued. Annette Nellen, a professor and director of the Master of Science in Taxation program at San Jose University, said that Amazons write-offs likely include credits for research and development, domestic production, and equipment depreciation. And according to a report from the Economic Policy Institute, Amazon receives myriad tax incentives from state and local governments as well: said report The expansion of Amazons physical distribution network has coincided with a strategic business plan of negotiating millions in tax abatements, credits, exemptions, and infrastructure assistance from state and local governments in the name of regional economic development. By the end of 2016, Amazon had likely received over $1 billion in state and local subsidies for its facilities, which would include not only fulfillment centers but sortation centers that only sort packages, mailing centers, and other facilities. Publicly-traded corporations can list the stock options they grant to employees as a business cost in their accounting, and if an option-receiving employee makes over $1 million a year in salary, the profits from the sale of those stocks can be then counted as a federal income tax deduction for the corporation (primarily due to a Clinton-era compromise over how to cap executive pay). Stock options allow an employee to purchase stock in their employers company at a set price, regardless of its current market value: list Options give executives and investors the right to buy shares of a company at a later date and at specific prices. For example, if a chief executive joins a media company when its stock is trading at $55 a share, but years later, the share price has skyrocketed to $100, that chief executive can still buy the shares at $55, pocketing the massive difference. In the cases of their highest paid employees, Amazon and other companies are able to deduct the massive difference employees make when they sell that stock at a profit. According to the Center for Tax Justice, because companies typically low-ball the estimated values, they usually end up with much bigger tax write-offs than the amounts they deduct as a 'cost' in computing the profits they report to shareholders. The $917 million in stock-based compensation listed in Amazon's SEC filing likely stems from their top employees' cashing in on their stock options for a large profit. deduct While it is impossible to know the exact amount of money Amazon did or did not pay to the federal government in 2017, their own accounting suggests that they expected their federal corporate income tax burden to be negative that year.  U.S. Securities and Exchange Commission.  Amazon.com Inc. Form 10-K"
  2 February 2018.
 Gardner, Mathew.  "Amazon Inc. Paid Zero in Federal Taxes in 2017, Gets $789 Million Windfall from New Tax Law."
  Institute on Taxation and Economic Policy.  13 February 2018.
 Tobias, Manuela.  "Bernie Sanders Says Amazon Paid No Federal Income Tax in 2017. He's Right."
  Politifact.  3 May 2018. 
 Jones, Janell and Ben Zipperer.  "Unfulfilled Promises."
  Economic Policy Institute.  1 February 2018. 
 Gunjan, Banerji.  "Potential Loser in Tax Overhaul: Executive Stock Options."
  The Wall Street Journal.  19 December 2017.
 Citizens for Tax Justice.  Fortune 500 Corporations Used Stock Option Loophole to Avoid $64.6 Billion in Taxes Over the Past Five Years."
  9 June 2016. Claim:  Gary Heavin, founder and CEO of the fitness chain Curves, supports pro-life causes. Status:  True. Example:  [Collected on the Internet, 2004] Just so you know: Gary Heavin, the founder of the Waco, Texas-based chain of exercise studios called Curves, is a heavy contributor to several organizations allied with Operation Save America, the rather more muscular successor to Operation Rescue, the anti-choice group. The organizations he funds are spreading the lie that abortions lead to an increased risk of breast cancer. Planned Parenthood says its operations in Texas are being threatened by Heavin-funded clinics based on the old therapeutic model "you must carry your child to term." In an article in Christianity Today, Heavin expressed pride in his involvement with anti-choice groups, to which he donates 10 percent of Curves' profits. You may do with this information what you will. Origins:   With more than 7,000 fitness and weight loss centers around the globe, Curves is the largest fitness franchise in the world. One in four health clubs in the U.S. is a Curves, a stupendous feat given that the company has only been around since 1992. Yet, for the utterly amazing, consider this: Prior to January 2004, Curves didn't have a national ad campaign. Almost all of its customers found out about the chain through word of mouth. You wouldn't think one exercise club could be that different from any other, but Curves are, and that difference accounts for the success of the chain. Curves exercise clubs are strictly for women. Their stripped-down no-frills look will likely come as a shock to those who   have been conditioned to believe proper fitness palaces should be fashioned of glass and gleaming chrome and populated by herds of designer-garbed hard-bodied 20-somethings setting new land speed records on treadmills and exercise bikes. At Curves, there are no lockers or showers, and the clientele is predominently middle-aged and overweight. The equipment members use is set up in a circle. Every 30 seconds those working out are told to move to the next station, which is either another machine that works different muscle groups or a space between two machines where exercisers run or walk in place. A typical Curves workout regimen is 30 minutes a day, three times a week. Because the equipment is hydraulic, it adapts to each user's level of fitness, making these workouts suitable for anyone regardless of physical conditioning. Women like the Curves program for its "30 minutes and you're on your way" aspect, but also for the camaraderie that comes from exercising with others, which appears to be spurred on by the arrangement of the workout stations in a circle. Friendships form. Encouragement is given. A sense of "We're all in this together" pervades. More than 7,000 outlets since 1992. Obviously, they're doing something  right. This highly successful chain is the brainchild of Gary Heavin, a Texas businessman who earlier in his life had a 17-location fitness center chain before filing bankruptcy, divorcing, losing custody of his two children, and serving a six-month jail sentence for failure to pay child support. Although a Christian from his teen years, he re-committed his life to Christ while in jail, after which he and his new wife (whom he married just before his incarceration) opened the first Curves in Harlingen, Texas, in 1992. The text of the e-mail quoted above was written by Jon Carroll, a columnist with the San Francisco Chronicle. It appeared in that paper on 20 April 2004. The statements made by Carroll in those three short paragraphs about Gary Heavin, the founder and CEO of Curves, hold water for the most part. Heavin (pronounced "Haven"), is a born-again Christian who is strongly pro-life and, according to an Operation Save America's web site (a pro-life group of a more radical orientation than Operation Rescue, and one that asserts there is a connection between abortion and increased risk of breast cancer), is one of their supporters: Operation Save America Operation Rescue We then contacted Mr. Gary Heavin, Founder and CEO of Curves International. Mr. Heavin is a wealthy man who is a committed Pro-life Christian. He is the premier customer of the bank that sponsors Komen. He graciously returned our phone call and promised to use his influence to convince the bank to give some of the funding to Carenet, so they could take care of the women, instead of Planned Parenthood. Several months passed and, lo and behold, on Tuesday, September 23rd, in the year of our Lord 2003, Carenet, our local CPC, held their annual banquet. It was the most attended, and as far as I was concerned, the best one to date. At the end, a major announcement and press statement was issued for Central Texas. Gary Heavin made a five million dollar grant to Family Practice, Carenet, and McCap. These groups and ministries would receive one million dollars a year for the next five years. Granted, some shortcuts were taken by Jon Carroll in his heads-up about Heavin. If Heavin does support Operation Save America, his "support" is of a non-financial nature. The "article in Christianity Today" was actually published in Today's Christian (formerly Christian Reader), a magazine put out by Christianity Today. Also, the "donates 10 percent of Curves' profits" is a misleading way of saying Heavin gave away that much money in 2003  the wording implies he donates that percentage of Curves' profits on an ongoing basis, yet the source material this information was drawn from speaks only to one particular year (2003), not to any year before it, and not to any plans by Heavin to gift at a similar level in future years.  Moreover, the  Today's Christian article stated that Heavin donated an amount equal to 10 percent of Curves' profits to "charities," which Jon Carroll has represented solely as "anti-choice groups"  though Heavin does financially support pro-life organizations and might well give only to them, he might also donate to other manner of charitable groups as well, with the 10 percent figure representing the total of what he doled out in charitable contributions in 2003 to various causes, both pro-life and otherwise. Ergo, either Carroll mischaracterized or misunderstood what he read, or he based his statement on information outside that Today's Christian article: Servanthood may not be today's normal model for business success, but that hasn't stopped the Heavins. In 2003, the couple gave away $10 million  10 percent of their company's gross revenues and 80 percent of Gary's net income  to charities. Heavin matches the first $1,000 that each franchise raises for community causes such as walkathons to benefit pro-life pregnancy-care centers. Such controversial stances have led to criticism, but Heavin is unfazed. "There's nothing healthy about abortion," he says. "I'm not afraid to tell the truth." In a correction published 4 May 2004, The San Francisco Chronicle said: "A Ruth Rosen column Thursday  'What's wrong with curves?'  stated that three 'pregnancy crisis centers' that received $5 million from Curves owner Gary Heavin were 'supported by Operation Save America.' The column was referring to Operation Save America's verbal endorsement of the centers, not financial support." On 13 May 2004, The San Francisco Chronicle published a further correction to information contained in both the Rosen and Carroll pieces: Two recent columns contained errors involving contributions made by Gary Heavin, founder and CEO of Curves, the women's fitness chain.  Ruth Rosen's April 29 opinion-page column stated that Heavin "has given at least $5 million of his profits to some of the most militant anti-abortion groups in the country." That characterization is not accurate.  The column specified that the money went to "three Texas organizations to fund 'pregnancy crisis centers.'" Only one of the recipients, Care Net, operates pregnancy crisis centers that are designed to dissuade pregnant women from having abortions while offering other support services to encourage adoption. Heavin has pledged to give Care Net $1 million over the next five years, according to a Curves spokeswoman.  The largest of the pledges  $3.75 million over five years  goes to the Family Practice Center of McLennan County, which provides a variety of health-care services to Central Texas residents, many of whom are uninsured, according to the Curves spokeswoman. The Catholic-run center does not provide abortions but is not actively involved in the anti-abortion movement, the center's CEO said.  The other recipient of Heavin's pledge, $250,000 over five years, was the McLennan County Collaborative Abstinence Project, which promotes sexual abstinence among teens. Its director said that, as a matter of policy, its staff would not discuss abortion when making presentations.  The column presented the contributions as a percentage of the company's annual gross revenues. But the Curves spokeswoman said that those pledges, as well as millions of dollars in donations to a wide range of charities, came from Heavin's personal wealth.  The column also referred to Heavin's comments in a "recent Christianity Today" article that he "is proud to support these organizations." In fact, the interview was published in the January-February issue of Today's Christian, a magazine affiliated with Christianity Today. In it, Heavin expressed his anti-abortion views but did not talk about his support for any specific organization.  In addition, Jon Carroll, in his April 20 Datebook column, erred in referring to Heavin's comments as appearing in "Christianity Today" and by stating that Heavin "donates 10 percent of Curves profits" to "anti-choice groups." He also wrote that Heavin's recipients were allied with Operation Save America, a radical anti-abortion group. As stated in a May 4 clarification on Rosen's column, Operation Save America has praised those recipients on its Web site but does not provide financial support, nor does it have a formal alliance with them.  The Chronicle regrets the errors. Gary Heavin is far from the first successful businessman to underwrite reproductive causes  Tom Monaghan of Domino's Pizza and Carl Karcher, founder of the California-based hamburger chain Carl's Jr., have been very open and public regarding their support of the pro-life philosophy, just as Warren Buffett, ranked by Forbes magazine as the second-richest man in the world, has been forthcoming about his backing of pro-choice programs. In each instance, these men are acting as private citizens who choose to bestow parts of their fortunes on the causes they believe in, not as officers of their corporations. The money is theirs to do with as they please, just as anyone's paycheck belongs to the person who earns it and stops being the employer's money at the moment it is paid out. That a spendthrift employee might choose to gamble away his earnings doesn't mean the company he works for supports gambling; likewise, that a wealthy man financially supports particular causes doesn't mean the corporation that paid him the money favors those movements.  Domino's Pizza Warren Buffett All this is by way of saying that while it's correct to identify Gary Heavin as a patron of pro-life endeavors, it would not be right to point to Curves as a supporter of those same causes.  Barbara "cause and effect" Mikkelson Additional information:     Curves International web site  Last updated:  19 November 2006    Sources:   Carroll, Jon.  "Jon Carroll."   The San Francisco Chronicle.  20 April 2004  (p. E12).    Chan, Vera H-C.  "Gary Heavin Creates Sanctuaries for Women."   San Jose Mercury News.  16 April 2004.    Kennedy, John W.  "Rolling with the Curves."   Today's Christian.  January 2004  (p. 30).    Lawrence, Elana.  "Curves, Without Frills."   The Washington Post.  27 May 2003  (p. F1).    Reimer, Susan.  "The Mature Are Ready to Go Around These Curves."   The Baltimore Sun.  8 February 2004  (p. N1).    Rosen, Ruth.  "What's Wrong With Curves?"   The San Francisco Chronicle.  29 April 2004  (p. B9).    The San Francisco Chronicle.  "Corrections."   4 May 2004  (p. A2).    The San Francisco Chronicle.  "Corrections."   13 May 2004  (p. A2). Democratic gubernatorial candidate Beto O'Rourke is blaming Gov. Greg Abbott for high inflation in Texas, taking a page out of the GOP playbook in attacking President Joe Biden. O'Rourke released anInstagram videoon April 23 with the caption, Greg Abbott is the single greatest driver of inflation in the state of Texas. TV news clips were stitched together with clips of O'Rourke speaking. In one clip in the montage, O'Rourke says, Under Greg Abbott, property taxes have gone up $20 billion. O'Rourke went on to say, When you add this to the other inflation that he's causing ...  with more clips pointing to electricity bills,traffic backups at the border in April due to additional commercial vehicle inspections Abbott ordered that he said would improve border security, and the rising costs of internet and phone for rural Texans. Overall, O'Rourke is saying Abbott is exacerbating consumer prices in Texas, which were already rising nationwide. We looked at one component of the ad: that jaw-dropping number of a $20 billion increase in property taxes. Is it true? Nationally, inflation hit a 40-year highaccording to March data from the Bureau of Labor Statistics, prompting criticism of Biden, especially as inflationrelates to government spending. O'Rourke's campaign pointed to aTexas Taxpayers and Research Association reporttitled Relief from Rising Values: 2019 Property Tax Reforms Cutting Tax Rates at a Record Pace. The report looked at the effects of legislation by state Sen. Paul Bettencourt, R-Houston, and state Rep. Dan Huberty, R-Houston, that overhauled the school finance system and local government budgeting practices and tamped down property tax increases for Texans. The association found property taxes are continuing to rise, but at a slower rate. The campaign pointed specifically to a figure in the report depicting Texas local property taxes from 2011 to 2021. Property taxes levied were just over $50 billion in 2015, when Abbott took office, and just over $70 billion in 2021. The difference is about a $20 billion increase. Data on estimated revenue from local property taxes is available on the state comptroller's website. According to the2018-19 biennial reporton property taxes by the comptroller's office, property taxes totaled $52.2 billion in 2015. Comptroller data on school district, city, county and special district property taxes indicatethere was an estimated $73 billion in property taxes collected statewide in 2021. That's at least a $20 billion increase and in line with the analysis by the Texas Taxpayers and Research Association. In the six years before Abbott's election, property taxes increased to a lesser extent, but that property tax growth was constrained by the Great Recession. To note, while O'Rourke is appealing to voters who may also be homeowners, both commercial and residential property taxes are included here. Austin Community Collegeeconomics professor Stuart Greenfield, whose state government career included work with economic models and how Texas distributes money to school districts, said just over half of the 2019 school district taxable value of property was single-family and multifamily homes. The Texas Taxpayers and Research Association is a lobbying organization that primarily spends its money on research. Its policy advocacy has a fiscal conservative bent, the association's President Dale Craymer said, but the organization doesn't advocate for the policies of one party over the other. Craymer said O'Rourke spoke correctly of the group's report based on the data it analyzed from the comptroller's office. The implication of O'Rourke's ad, however, is that Abbott is responsible for rising property taxes. Craymer said the role of state government is indirect at best when it comes to property taxes because rates are set locally and not by the governor or Legislature. Basically, the process by which rates are set and adopted is laid out in state law, Craymer said. The Legislature and the governor obviously are responsible for drafting and putting those laws in effect. But the state really doesn't have a direct say in the amount of property taxes individual jurisdictions raise. The association's report found taxes would have been somewhat higher without twoproperty tax changes by the Legislature in 2019. One created a process where school district property taxes would decrease over time for senior citizens, whose school district taxes are capped. The second change, Craymer said, increased the school district property tax homestead exemption for homeowners from $25,000 to $40,000, saving homeowners about $180 per year. Also in 2019, the Legislature required cities, counties and most special districts to seek voter approval to set a property tax that raises revenues more than 3.5%. For junior colleges and hospital special districts, the threshold for voter approval is 8%. For school districts, it is 2.5%. State policy also affects property values, and increases in value are tied to increases in taxes. Richard Auxier,senior policy associate at the Tax Policy Center under the Brookings Institute and Urban Institute, said the value of Texas homes is increasing alongside the rest of the country. While you can frame that as property taxes went up, you can flip that to home values went up, Auxier said. It's always going to be a trade-off, because people want the value of their homes to increase, but people don't want their taxes to go up. Texas Republicans have campaigned on property tax relief, too. Abbottadded property tax reliefto the Legislature's third special session agenda in 2021 thatresulted ina now-approved amendment to the Texas Constitution. Abbottsimilarly publicized his support for property tax reliefas a priority in a May 2 tweet ahead of May 7 elections. Abbott'scampaign responded to O'Rourke's adby saying Abbott reduced property taxes by $18 billion since taking office and O'Rourke increased property taxes as an El Paso City Council member. Texas voters approvedProposition 2, which raises the homestead exemption for school district property taxes from $25,000 to $40,000. They also approvedProposition 1, which corrected a 2019 oversight in tax relief that did not apply to homeowners who are disabled or 65 or older because their school tax burden is capped. O'Rourke said in an April 23 Instagram video on rising inflation in Texas that, Under Greg Abbott, property taxes have gone up $20 billion. Data presented in biennial reports and on the comptroller's website show that estimated revenue collected through property taxes increased by more than $20 billion. O'Rourke's figure was accurate. But property taxes are set locally, not by the state. Although state policies might indirectly affect property taxes, the governor's role in setting property taxes is indirect. We rate this as Mostly True. Since the Inflation Reduction Act passed with only Democratic support in Congress, Republicans have criticized the bill, saying it will saddle ordinary Americans with increased audits by the Internal Revenue Service. The legislation, signed into law by President Joe Biden on Aug. 16,includesprovisions that would lower drug costs, address climate change, reduce the deficit, and impose higher taxes on the largest corporations. But much of the Republican criticism has focused on the laws allocation of about $80 billion over 10 years to strengthen the Internal Revenue Service. House Republican leader Kevin McCarthy, R-Calif., said that the Democrats' new army of 87,000 IRS agents will be coming for you  with 710,000 new audits for Americans who earn less than $75k. Sen. Joe Manchin, D-W.Va., sought to counter these attacks in an Aug. 28tweet, saying, The Inflation Reduction Act will ensure the wealthiest & most fortunate among us pay their fair share in taxes just like #WV families & small businesses. WV families making less than $400K & small businesses will NOT be targeted by the IRS because they are already paying taxes. The Inflation Reduction Act will ensure the wealthiest & most fortunate among us pay their fair share in taxes just like#WVfamilies & small businesses.WV families making less than $400K & small businesses will NOT be targeted by the IRS because they are already paying taxes. Manchin has a point. His argument is roughly the inverse of McCarthys, which PolitiFact ratedMostly False. We concluded that McCarthys 710,000-audit estimate runs counter to the IRS stated policy and was based on a flawed use of a Congressional Budget Office estimate that assumed much higher spending on enforcement than is in the legislation that passed. (We also found that McCarthys 87,000 figure was exaggerated because not all of those employees would be enforcement agents.) Here, well zero in on Manchins statement that WV families making less than $400K & small businesses will NOT be targeted by the IRS. The 710,000 figure stems from an exaggerated calculation by U.S.Rep. Kevin Bradyof Texas, the House Ways and Means Committees top Republican. He arrived at the number by bringing together two pieces of data. In 2021, the Congressional Budget Office said that $80 billion more for the IRS would return audit rates to the levels of about 10 years ago. Brady took 2010s audit rates and applied them to the number of tax returns in 2018, broken down by income groups. Using his approach, there would be about 710,000 more audits for filers reporting less than $75,000 in income. However, this approach ignores several key details about what the CBO report says elsewhere and what the bill  and the Treasury  have made clear: This effort aims to increase audits of corporations and high-net-worth individuals. The full sentence in the CBO report that Brady was drawing from said the audit rate would rise for all taxpayers, but higher-income taxpayers would face the largest increase. Brady also failed to note a key difference between the budget offices assessment from a year ago and the bill that was passed in 2022. The CBO assumed in its report that $60 billion of the $80 billion would go toward enforcement. But the current bill would result in substantially less than that  $46 billion  for enforcement, according to aCongressional Research Serviceanalysis. With nearly one-third less money for enforcement, the resulting number of audits would likely be smaller. Perhaps the biggest problem with assuming there will be a big increase in audits for middle- to low-income Americans, however, is that it runs directly counter to the IRS stated policy, which Treasury Secretary Janet Yellen laid out in a letter to IRS Commissioner Charles Rettig. I direct that any additional resources  including any new personnel or auditors that are hired  shall not be used to increase the share of small business or households below the $400,000 threshold that are audited relative to historical levels, Yellen wroteAug. 10. Rettig had said much the same in anAug. 4letter to Congress. Audit rates for filers reporting less than $75,000 in income have held steady over thepast several yearsat about 0.4%. Thats lower than the audit rate in 2011, when it was 1%. Yellen said enforcement will focus on corporations and people with high net worth. Auditing them requires staff with special skills. Today, she said, the agency is able to audit only about 7,500 out of 4 million such returns each year. Focusing on higher earners, as the IRS plans to do, would go a long way toward reversing the agencys historical focus on auditingsome of the lowest earners, largely households that file for the earned income tax credit. The only caveat to Manchins statement is that theres no guarantee the agency will adhere to the new policy it has announced. The pledge not to use the Inflation Reduction Act funds to increase audits of those making less than $400,000 is not built into law, John Buhl, senior communications manager at the Urban Institute-Brookings Institution Tax Policy Center, told PolitiFact West Virginia. Although its not written in law, its a policy that has been stated publicly on several occasions. Both the IRS and Treasury are committed to that policy decision, as outlined in recent letters, said Erin Heeter, Manchins press secretary. Both the IRS and Treasury also outlined in their recent letters that audit rates for families making under $400k will not change. Buhl agreed that its unlikely that the IRS will perform audits on lower-income families when they already have documentation through W-2 wage pay stubs and other statements. And audits of high earners arewhere the money is, anyway. The top 1% of earners account for about 30% of the $600 billion each year that is owed but goes uncollected, Natasha Sarin, counselor for Tax Policy and Implementation at the Treasury Department, told PolitiFact. Manchin said, WV families making less than $400K & small businesses will NOT be targeted by the IRS. This limitation wasnt written into the Inflation Reduction Act. However, top Treasury and IRS officials have consistently confirmed that the new resources allocated to the IRS by the law will be focused on audits of the highest-paying Americans, making it stated policy. We rate the statement Mostly True. After an Austin mayoral candidate proposed to permanently cut homeowner taxes, City Council Member Mike Martinez said the idea wouldnt benefit most residents. Martinez, also a candidate for mayor, reacted after attorney Steve Adler said the council could have created a city homestead exemption, or tax break for homeowners, years before. We need to act, Adler said Aug. 4, 2014, according to anAustin American-Statesmannews storythat day. Adler called for a 20 percent exemption--as in a 20 percent cut to each homes taxable value--at a city-estimated cost of $36 million a year. Martinez and a third mayoral aspirant, City Council Member Sheryl Cole, said Adlers idea revealed his lack of governing experience. Martinez said: This would be $36 million that would benefit the wealthiest Austinites the most. The majority of Austinites rent and would see no financial benefit at all. We wondered about Martinezs statement that most Austin residents rent, rather than own, the places they live. We did not delve into his contention that renters wouldnt benefit from Adlers proposal. To our inquiry, a Martinez campaign spokesman, Nick Hudson, pointed out a July 31, 2014,city reportincluding an illustration stating that 183,000 of the citys 331,000 households in 2012 (55 percent) were renters--a proportion in keeping with trends in 2000 and 2008, the report says. By contrast, 148,000 households, 45 percent, were owners. Hudson also forwarded a web link toa city-generated chartdrawing on the 2010 U.S. Census indicating 51 percent of Austins residents were renters that year. To get our own fix on this, we queried Lloyd Potter, the Texas state demographer, who said by email Martinezs claim is supported by the best available resource, American Community Survey data annually gathered by the U.S. Census Bureau. According to the surveys taken from 2010 through 2012, Potter said, 418,138, or 52 percent, of an estimated 799,183 Austin residents lived in rental units compared with 381,045 residents, or 48 percent, who were owners. He said the 2012 survey alone suggests 432,400, 53 percent, of the citys 823,340 residents were renters compared with 390,940, nearly 48 percent, who were owners, Potter said. Separately, a bureau spokesman, Robert Bernstein, responded to our inquiry by emailing a chart based on the bureaus 2012 survey suggesting there were more housing units rented in Austin than units that were occupied by owners. According to the survey, 183,080 of 330,838 housing units (55 percent) were renter-occupied with 147,758 (45 percent) being owner-occupied. (We suspect these figures were the basis of the information in the report noted by Martinezs camp.) Occupied housing units 2012 American Community Survey 1-Year Estimates Source: U.S. Census Bureau, 2012 American Community Survey (chart received by email from Robert Bernstein of the bureau). Our ruling Martinez said the majority of Austinites rent where they live. Government surveys show slightly more than half the citys residents rent. We rate this statement True. TRUE The statement is accurate and theres nothing significant missing. Click here formoreon the six PolitiFact ratings and how we select facts to check.