Does the Biden plan require banks to report all transactions exceeding $600 to the IRS?
Announced in April 2021, U.S. President Joe Bidens American Families Plan is an ambitious proposal that aims to expand Americans' access to childcare and education and increase the number of women in the workforce. The plan is to fund all of this through more taxes on higher-income earners and increased reporting requirements of banks that could potentially yield more tax revenue. These reporting requirements have caught the ire of a number of banks that took issue with this less widely known section of the plan. Announced reporting A Facebook post by FNB Community Bank claimed: The Biden administration has proposed requiring all community banks and other financial institutions to report to the IRS on all deposits and withdrawals through business and personal accounts worth more than $600 regardless of tax liability. This indiscriminate, comprehensive bank account reporting to the [Internal Revenue Service (IRS)] can soon be enacted in Congress and will create an unacceptable invasion of privacy for our customers. Facebook post   Another screenshot shared by our readers expressed similar concerns:   The Independent Community Bankers of America (ICBA) even began a campaign, calling on communities to send a letter to Biden to prevent this so-called intrusive proposal": began a campaign, Tell Congress: Don't Let IRS Invade My Privacy The Biden administration is proposing requiring financial institutions report to the IRS all transactions of all business and personal accounts worth more than $600. This is an unprecedented invasion of privacy. In order to knock down this intrusive proposal, please send this letter to your representative and senators immediately. We looked up the proposal itself, and it does require more robust reporting of transactions across business and personal accounts. The proposal, which aims to go into effect after Dec. 31, 2022, states: proposal This proposal would create a comprehensive financial account information reporting regime. Financial institutions would report data on financial accounts in an information return. The annual return will report gross inflows and outflows with a breakdown for physical cash, transactions with a foreign account, and transfers to and from another account with the same owner. This requirement would apply to all business and personal accounts from financial institutions, including bank, loan, and investment accounts, with the exception of accounts below a low de minimis gross flow threshold of $600 or fair market value of $600. We begin by explaining some of the more technical terms in this proposal. A "de minimis threshold" is broadly defined as the amount of a transaction that has such a small value that accounting for it would be unreasonable. We spoke to Visiting Assistant Professor of Tax Law at New York University, Nyamagaga Gondwe, who explained, "It is the amount below which the [IRS] would argue isn't worth investigating. It's the difference between your company giving you a $5 card to Subway, versus traveling on a private jet on your company's dime. [The latter] is worth reporting." In this case, "gross flow" refers to the aggregate inflows and outflows of cash from bank accounts. In sum, the current proposal stipulates that an aggregate amount of less than $600 worth of cash flowing into and out of accounts is not worth reporting.  defined gross flow The "fair market value" refers to the amount people are willing to pay for an asset in the open market. In this case, Gondwe argued, the use of the term could possibly refer to the changing market value of transactions more than $600 that may occur in foreign currency transactions.  refers to The ICBA claims that the proposal will make banks report "all transactions" above the limit, but this is misleading. While it is true that the IRS will have more information on cashflows above $600, that doesnt mean they will have all the information pertaining to all transactions. The Center for American Progress (CAP) points out that banks will only be providing aggregate numbers to the IRS after each year  gross inflow and gross outflow  and not individualized transaction information. This reporting requirement would also extend to peer-to-peer payment services like Venmo, but wouldnt require people to report any additional information to the government. According to The Wall Street Journal, financial institutions must already report interest, dividends, and investment incomes to the IRS, and the IRS can get other information through audits. Center for American Progress extend Wall Street Journal audits According to Marie Sapirie of Tax Notes, a publication focused on tax news, a parenthetical to the proposal indicates that there is some flexibility on raising the minimum account balance/inflow/outflow above $600. Tax Notes parenthetical The Tax Notes report also states that the treasury department estimated this form of reporting would raise $463 billion over the 10-year budget window, making it the third largest revenue raiser proposed in the budget. The aim is to target businesses outside of large corporations that carry out gross underreporting of their income in the amount of $166 billion per year. According to the proposal: Requiring comprehensive information reporting on the inflows and outflows of financial accounts will increase the visibility of gross receipts and deductible expenses to the IRS. Increased visibility of business income will enhance the effectiveness of IRS enforcement measures and encourage voluntary compliance. Tax Notes aim Banks claim this would be an invasion of consumer privacy, with the ICBA saying it would allow the government to monitor account information. However, CAP analysts Seth Hanlon and Galen Hendricks argue, Only the prior years total inflow and total outflow would be reported on annual forms. No one would say that the IRS monitors you on your job because it receives a W-2 from your employer with your total wages every January. saying argue Another challenge not mentioned in the ICBAs consumer alert is the higher costs this reporting proposal may place on banks. In May 2021, a coalition of banking associations wrote a letter to the U.S. Senate Committee on Finance, arguing that they already give a lot of data to the IRS, and that this would impose additional costs on their systems: consumer alert wrote a letter The costs and other burdens imposed to collect and report account flow information would surpass the potential benefits from such a reporting scheme. New reporting would appear to require material development costs and process additions for financial institutions, as well as significant reconciliation and compliance burden on impacted taxpayers. For example, reporting total gross receipts and disbursements would require a new reporting paradigm for depository institutions, which necessitates system changes to collect the information. On the flipside, Sapirie wrote for Tax Notes, the benefits of such a reporting proposal may be difficult to come by: Tax Notes Increasing the amount of information flowing into the IRS would not in itself lead to increased enforcement, and it might come with added challenges. [Former IRS Commissioner Charles O.] Rossotti acknowledged that the IRS today cannot use all the information it already receives, and significant areas of noncompliance are barely addressed, so more reporting alone will not solve the problem. It would almost certainly have a deterrent effect for taxpayers contemplating evasion, but the extent of that effect is unclear, and it might be insufficient to justify the costs to financial institutions and the federal government of implementing such a large new reporting regime. But CAPs analysis argues that this will help prevent tax evasion, while also providing more funding to enhance data security for consumers: CAPs analysis Additional funding would go to enhancing data security. Even at present, the IRS data security is already much better than the financial industry, with only very rare and limited breaches compared to the exponentially bigger data breaches from financial institutions. Second, the reporting of information flows only from financial institutions to the IRS and not in the other direction, as some earlier proposals had called for.  [...] The Biden administrations bank reporting proposal is a critical element of the Build Back Better agenda. It gives the IRS some visibility into opaque forms of income that disproportionately accrue to high-income individuals. Despite fearmongering from bank lobbies, the proposal protects taxpayers privacy while simply requiring banks to provide basic, aggregated information about flows. That enables the IRS to select audits in a more efficient and equitable way so that the vast majority of taxpayers will be less likely to be audited. And by deterring and helping catch tax cheats, the proposal raises substantial revenue for the Build Back Better agenda, which provides critical investments to increase economic opportunities for American families and communities. On Oct. 12, 2021, Speaker Nancy Pelosi defended the proposal in response to a question from a reporter, who said, "[Banks] are concerned about the tracking of transactions that are greater than $600, Americans are starting to get worried about this. Do you think [this] is going to stay in the Reconciliation Bill?"  defended "With all due respect, the plural of anecdote is not data," Pelosi said. "Yes, there are concerns that some people have. But if people are breaking the law and not paying their taxes, one way to track them is through the banking measure. I think $600  that's a negotiation that will go on as to what the amount is. But yes."     Whatever the impact of this proposal is, it does require additional reporting of certain bank transactions, just not in the way the above banks are portraying it. As such, we rate this claim a Mixture. A Scorecard for Reconciliation, Round 2. Tax Analysts, https://www.taxnotes.com/featured-analysis/scorecard-reconciliation-round-2/2021/09/10/783l0?highlight=biden. Accessed 15 Sept. 2021. Community Banks Must Engage Customers on New IRS Reporting Mandates. ICBA, https://www.icba.org/newsroom/blogs/main-street-matters---advocacy/2021/08/19/community-banks-must-engage-customers-on-new-irs-reporting-mandates. Accessed 15 Sept. 2021. Consumer Alert from ICBA. ICBA, https://www.icba.org/bank-locally/consumer-alert-from-icba. Accessed 15 Sept. 2021.Digging Into the Bank Info Reporting Plan. Tax Analysts, https://www.taxnotes.com/tax-notes-today-global/information-reporting/digging-bank-info-reporting-plan/2021/08/30/777dx. Accessed 15 Sept. 2021. Fair Market Value (FMV). Investopedia, https://www.investopedia.com/terms/f/fairmarketvalue.asp. Accessed 16 Sept. 2021. "General Explanations of the Administrations Fiscal Year 2022 Revenue Proposals." Department of the Treasury, May 2021, https://home.treasury.gov/system/files/131/General-Explanations-FY2022.pdf. Accessed 15 Sept. 2021. Gross Cash Flow Definition. Law Insider, https://www.lawinsider.com/dictionary/gross-cash-flow. Accessed 16 Sept. 2021. Hanlon, Seth, and Galen Hendricks. Bank Tax Reporting Is a Critical Component of Bidens Build Back Better Agenda. Center for American Progress, 14 Sept. 2021, https://www.americanprogress.org/issues/economy/news/2021/09/14/503821/bank-tax-reporting-critical-component-bidens-build-back-better-agenda/. Accessed 15 Sept. 2021. ICBA Urges House Panel to Reject IRS Monitoring Plan. Default, https://www.icba.org/newsroom/news-and-articles/2021/09/09/icba-urges-house-panel-to-reject-irs-monitoring-plan. Accessed 15 Sept. 2021. Jagoda, Naomi. Pelosi Defends IRS Bank-Reporting Proposal, Says Specifics Open to Negotiation. The Hill, 12 Oct. 2021, https://thehill.com/policy/finance/576362-pelosi-defends-irs-bank-reporting-proposal. Joint Trades Statement for the Record: Senate Subcommittee on Taxation and IRS Oversight Hearing Entitled: Closing the Tax Gap: Lost Revenue from Noncompliance and the Role of Offshore Tax Evasion." 10 May 2021, https://bpi.com/wp-content/uploads/2021/06/Joint-SfR-Senate-Finance-Subcommitte-Hearing-on-Closing-the-Tax-Gap-051021.pdf. Accessed 15 Sept. 2021. Rubin, Orla McCaffrey and Richard. Biden Tax Plan Leans on Banks to Help Find Unreported Income. Wall Street Journal, 29 Apr. 2021. www.wsj.com, https://www.wsj.com/articles/biden-tax-plan-leans-on-banks-to-help-find-unreported-income-11619701380. Accessed 15 Sept. 2021. Tankersley, Jim, and Dana Goldstein. Biden Details $1.8 Trillion Plan for Workers, Students and Families. The New York Times, 28 Apr. 2021. NYTimes.com, https://www.nytimes.com/2021/04/28/us/politics/biden-american-families-plan.html. Accessed 15 Sept. 2021. "When Is a Minimal Fringe Benefit Not So Minimal?" https://www.wolterskluwer.com/en/expert-insights/when-is-a-minimal-fringe-benefit-not-so-minimal. Accessed 16 Sept. 2021. Oct. 14, 2021: Added Pelosi's comments on the proposal.
On 8 January 2016, the entertainment web site The Reporterz published an article reporting that Delaware had created a new "child support card" that controlled "what mothers can and cannot buy" with their child support funds: This measure was taken to prevent parents from misusing funds that are meant to help with costs associated with raising children, such as school related expenses, food, etc. This card will not be allow the parent to purchase alcohol, cigarettes or pay car payments the card will be used exactly like a food stamp card. We spoke to Tasha Brown who was upset after she couldn't purchase a bottle of Hennessy at her local liquor store. she says "Its' [sic] unfair its [sic] my money I should be able to do what i want with it how will I pay for my new weave?"   The article was ambiguous about whether the card would apply to all funds received for the care of children (such as support monies paid by former spouses) or funds made available through government assistance programs. It didn't matter either way, though, as the story was a complete fabrication that originated with a fake news web site that does not publish factual stories. A disclaimer on The Reporterz states that "every article is based on a true story, only the facts have been changed." In this case, Delaware really does have a card that makes it easier for single parents and guardians to receive funds. The First State Family Card is a pre-paid debit card that does not require bank account: The First State Family Card is a pre-paid VISA card that is credited whenever a payment is posted to any/all of a client's child support case(s). Benefits to the debit VISA card include: While Delaware does have a card that makes it easier for parents to collect child support, the handbook for the First State Family Card (not the "Child Support Card") does not mention any restrictions on how the funds may be utilized. mention Claim:  President Obama has signed a bill forgiving all student loans taken out within the last ten years. Example:  [Collected via e-mail, June 2014] CONFIRM IF PRESIDENT SIGNED BILL  FORGIVING STUDENT LOANS   Origins:  On 5 June 2014,  the Empire News web site published an article positing that President Obama had signed a bill forgiving all student loans taken out within the last ten years (and any such loans to be taken out by current students in the future): article Americans who are under the financial strain of repaying student loan debt may now be off the hook for their education costs. President Obama signed a new federal bill this week releasing any student who has accrued outstanding debt because of the high interest rates and outrageous balances caused by college loans. "Any student, past or present, who has taken loans from the federal government within the last 10 years to pay for higher education, will no longer be required to pay back those loans," said President Obama. "This forgiveness also is to be extended to any student currently enrolled in college, who may need financial assistance for the next several years as they finish their degrees." By the following day links and excerpts referencing this article were being circulated via social media, with many of those who encountered the item mistaking it for a genuine news article.  However, this tem was just a spoof from the Empire News,  a satirical web site that publishes fictional articles such as "Surgeons Remove Toy from Man's Rectum for 37th Time," "Teenager Hospitalized with Facebook Withdrawals," and "School Suspends Student for Gun Shaped Birthmark." Empire News' "About/Disclaimer" page notes that the site is a satirical publication: About/Disclaimer Empire News is a satirical and entertainment website. We only use invented names in all our stories, except in cases when public figures are being satirized. Any other use of real names is accidental and coincidental. On 9 June 2014, President Obama did announce changes to the federal student loan program, but those changes stopped short of the blanket loan forgiveness posited in the Empire News article: changes President Obama announced an expansion of a program that helps student loan borrowers manage their debt, a White House official said. The official said Obama will expand the criteria for an alternative repayment program, which caps monthly payments for certain federal student loans at 10% of a borrower's discretionary income. The alternative payment programs are designed to help borrowers struggling under the weight of student loans. They include forgiveness programs for on-time payments and public-sector employees. Teachers can have their balance canceled after ten years, for example. Low-income borrowers can have their balance canceled after 20 or 25 years of on-time payments. Borrowers who don't quality for forgiveness but use a repayment program find their monthly payments reduced but spread out over a longer period of time. That means they will pay more over the lifetime of the loan, as there is additional time for interest to accrue.   Last updated:  9 June 2014 Ohio Senate President Keith Faber and other members of the GOP majority caucus stood in front of placards that said job creation and workforce development to talk with reporters about their priorities for the 130th General Assembly. Faber said the first bills introduced by Senate Republicans would include legislation focused on job training and placement to maintain the strength of the state economy. Ohio companies, he said, export more goods and services globally than 41 other states. That aroused the curiosity of PolitiFact Ohio. We wanted to know more, partly because the ranking means Ohio would trail less populous states. The Ohio Department of Development said in its latest report on state exports that Ohio was the 9th largest exporting state, confirming what he said. The Development Department is an affiliate of the U.S. Census Bureau. With the U.S. Commerce Department, it is the official source for U.S. export and import statistics. We followed our curiosity further into its data from 2011, the most recent available: In global exports, Ohio trails Texas, California, New York, Washington, Illinois, Florida, Louisiana and Michigan. The state's largest export market is Canada, followed by Mexico, China, France and Brazil. The state's largest merchandise export category is transportation equipment. And export-supported jobs linked to manufacturing account for an estimated 7.1 percent of Ohio's total private-sector employment. Faber's statement rates True on the Truth-O-Meter. In April 2021, an image went viral on social media platforms that was represented as follows:"This is not a painting. It is the most detailed image of a human cell to date, obtained via radiography, nuclear MRI, and cryoelectronic microscopy." As we'll explain below, that description is completely inaccurate. First, here's an example of the miscaptioned image as posted on Facebook in late 2022:  Contrary to what the caption claims, this is a painting of sorts -- a digital illustrationby an artist named Russell Kightley. It is not the most detailed image of a human cell to date -- in fact, it is, in Kightley's words, a "generalized animal cell," not specifically a human cell. Nor was the image obtained via radiography, nuclear MRI, or cryoelectronic microscopy. All of that was made up out of whole cloth. Kightley created the image with graphics software. digital illustration Russell Kightley As Kightley has written on his blog, the image has repeatedly gone viral since April 2021, almost never with an accurate description or proper credit to the artist (AFP fact-checked viral versions of the image in July 2021). Kightley wrote: has written on his blog AFP fact-checked The image was created twenty years ago for an educational poster for BioCam. It took six weeks of full-time work to create using Painter (Fractal Design's Painter as it was, now it's managed by Corel). Since then, it's appeared in lots of places, including Richard Dawkins's book, The Greatest Show on Earth (plates 12-13 c). It's available on prints and merchandise and for licensing (publication, academic use, etc.). If you want to print it out for your home or office you can buy the digital file here. If you want it for teaching, you can get the 700-pixel file here. BioCam prints and merchandise 700-pixel file Of the conception and design of the illustration, Kightley wrote: I wanted it to look like an opened jewelry box, for the glint and sense of wonder at the inner workings. The colors are arbitrary, but I've used greenish-blue for plasma membranes and red or purple for DNA for many years. It's a generalized animal (including human) cell, with no specializations and was designed as a basic biology teaching tool. I have spent many years creating cell and virus illustrations and animations, including pioneering work on animating the HIV life cycle back in 1990-1991, where I created internal cellular landscapes (using electronic paint on a Quantel Paintbox) and originated this style of illustration. You can learn more about the artist and view more of his work on RussellKightey.com. RussellKightey.com "Animal Cell on White by Russell Kightley." Russell Kightley - Website, https://russell-kightley.pixels.com/featured/animal-cell-on-white-russell-kightley.html. Accessed 12 Jan. 2023. "Illustration of Animal Cell Misrepresented as 'Most Detailed Image of Human Cell.'" Fact Check, 27 July 2021, https://factcheck.afp.com/http%253A%252F%252Fdoc.afp.com%252F9GD4Z3-6. Kightley, Russell. "Animal Cell Goes Viral AGAIN." Russell Kightley, 25 July 2021, https://www.russellkightley.com/post/animal-cell-goes-viral-again. "Russelly." Russell Kightley, https://www.russellkightley.com/russelly. Accessed 12 Jan. 2023. Claim:  Alabama mom's Obamacare horror story gives America a glimpse of government run healthcare. CORRECTLY ATTRIBUTED Example:  [Collected on the Internet, December 2013] My family's journey with securing our new insurance under the Affordable Care Act (ACA) started on October 1, 2013.   I have decided to write this letter to let the American people know what it has been like for us.   We are a family of four, with two little boys' ages seven years old and three years old.   My husband and I have had full time jobs for 6 years and 13 years respectively.  We have been with the same two companies for those years.  We are a middle class family; we own our three bedroom two bath house, we own two cars, and previously provided our own insurance for the four of us.  We have coverage through Individual Blue from Blue Cross Blue Shield of Alabama until 12/31/13. Our premiums have been $380.00 a month, which also included dental coverage for all four of us.  On October, 1, 2013 we received our letters like other Alabamians about our new premiums and plans for 2014 from Blue Cross Blue Shield (BCBS) of Alabama.  When I opened our letter to say I had sticker shock was an understatement.  Our premiums for the Blue Saver Silver would now be $753.26. This included the ACA tax but did not include the additional $75.00 we would need to pay in order to keep dental for me and my husband.  So we would need to pay total $828.26 to keep health and dental insurance for the four of us.  This payment is roughly $64.00 less than what we pay for our mortgage each month.  I was outraged that anyone thought we could afford this.  Sure we have some savings, but with that price tag we would whittle it down to almost nothing very quickly.  I consider savings as a rainy day fund, a start to saving for the kids college, our retirement, etc.  I never dreamed in a million years we would need to use it to pay our insurance premiums each month  how in the world could this help the economy too?  [Rest of article here.] here Origins:  The item referenced above, an open detailing one Alabama woman's extreme difficulty and frustration in obtaining ACA-compliant health insurance coverage for her family (including her 7-year-old son with ADHD) was posted under the name of Karri Kinder on 23 December 2013 as the sole entry in a blog and was republished (without additional comment) by the Independent Journal Review on 31 December 2013. blog republished Certainly her experience is not unique in kind, as many residents of Alabama covered by Blue Cross and Blue Shield (BCBS) of Alabama (an insurer who has an 88% share of the state's health insurance market) found out at the end of 2013 that they would be paying much higher premiums for ACA-compliant coverage through BCBS: Doug Hoffman, who works statewide to help people sign up for benefits through the Affordable Care Act, just received a Blue Cross and Blue Shield of Alabama notice in the mail to find health insurance rates for his family have doubled. And  he's mad  at Blue Cross. "I just got my benefits renewal from Blue Cross for next year and they doubled my rate!" he wrote AL.com in an email. "I was paying $675 for a family premium (2 adults, one 22 yo dependent) with a $1,500 deducible. The new rate for a comparable plan is $1,360 with a $3,000 deductible. Basically they have doubled my costs." "It appears as though Blue Cross is taking advantage of the ACA by hiking rates big time," said Hoffman, who is based in Birmingham with Enroll Alabama. Others, who have received the notices from the state's dominant health insurer are mad as well  at Obamacare. "Obama thinks that he is making insurance affordable," wrote one reader to the Mobile Press Register Sound Off feature. "I just got a letter from my Blue Cross Blue Shield that if I want to keep their insurance it's going to cost me $300 more a month. I already pay $300 a month now and they're wanting right at $600 a month for this Affordable Care Act." Blue Cross posted an explanation for the rate hikes to its Facebook page, maintaining that several reasons are behind the increased premiums: more taxes and fees, a requirement to rate family members individually, and the elimination of health underwriting and waiting periods for preexisting conditions: explanation The new law requires all health insurance companies in the individual and small group markets to use a consistent rating method called "member level rating." For the individual market, this means each person on an insurance policy will now be rated based on age, whether he or she uses tobacco, and the county in which the policy holder lives. In the past Blue Cross was able to offer one family premium, no matter the size.  For family plans, most family members will now be rated individually. Once each person has been rated, the amounts are added together to get a family's premium cost. For children age 20 and younger, the oldest three children will be individually rated and included in the family premium amount.   As a result, larger families may experience higher premiums. As Mike Oliver noted in an article for AL.com, the elimination of health underwriting may have a substantial effect on health insurance premiums in that state: article "Alabama has allowed medical underwriting  you're going to be quoted a high premium if you have something wrong with you," said Michael Morrisey, director of the University of Alabama at Birmingham Lister Hill Center for Health Policy. "The Affordable Care Act abolishes medical underwriting." This means that those with expensive health problems will likely now jump in and buy coverage because it will be less expensive for them  or if they already have coverage  their rates will go down. But that also means rates will go up for everyone else as the insurer spreads that new cost around. "The thing that happens when you eliminate underwriting is that you lump dissimilar people together," Morrisey said. "When you combine groups, one group is better off and the other group is worse off"  in terms of premium prices. As a policy, the elimination of medical underwriting and preexisting condition clauses helps broaden access to health care coverage and that was the aim of its inclusion in the Affordable Care Act. Reformers say it eliminates insurers from "cherry-picking" and reduces uncompensated care. Karri Kinder subsequently posted followups to her original blog entry about her insurance issue, the update of 4 January 2014 stating that: Karri Kinder blog entry I do have some good news.  Because I decided to write my letter and speak out, people stepped up and helped us.  We were contacted on January 1, 2014 by the U.S. Department of Health and Human Services.  I was told by the woman I spoke with that she had read my letter and wanted to get her team involved and see what they could do to help us.  I recounted to her what was happening and that I had been advised to go ahead and sign me and my husband up for a plan on healthcare.gov.  We went with a lower cost plan because it was going to just be the two of us.  We had no idea what it was going to cost for the children once we got some answers.  So we went with BCBS Blue Value Saver plan.  The cost of the plan is $459.19.  We qualified for $255.00 in subsidies so the final cost of the plan to us is $204.19 each month.  I told the lady that I would cancel that plan if I needed to.  What we wanted was to have all of us on one plan like we always have been.  She said, "If the kids qualify for All Kids then I am pretty sure they have to go that route or you will have to buy them a plan at the normal rate."  So again we were told more than likely we will have to go through All Kids.  She took the rest of our information down and said she was getting her team to work on it and would either call us back or All Kids would contact us. Last updated:  4 January 2014    Oliver, Mike.   "Blue Cross in Alabama: We Didn't 'Cancel' Health Policies."   AL.com.  2 December 2013.    Walsh, Alex.   "Obamacare, Big Blue, and You."   AL.com.  31 December 2013. President Barack Obama is expected to take another stab at raising the minimum wage when he delivers his State of the Union speech this week. But Republicans appear ready to stymie that proposal once again. The topic came up Jan. 26, 2014, onFox News Sundayduring a discussion between host Chris Wallace and Senate Minority Leader Mitch McConnell, R-Ky. Isn't it reasonable that somebody who's working full time, 40 hours a week, should be able to live above the poverty line? Wallace asked McConnell, referring to Obamas calls to hike the minimum wage to $10.10 an hour. Yeah. But of course, the minimum wage is mostly an entry-level wage for young people, McConnell replied. We have a crisis in employment among young people right now. McConnell went on to say that he believes raising the minimum wage will hurt employment and we ought to be doing things that create more jobs. But what about McConnells characterization of minimum wage workers? Is it a workforce mostly made up of young folks? Well stick to the federal minimum wage, which is $7.25, since thats the topic up for debate. As it stands,21 states and the District of Columbiahave set their minimum wage higher than the federal level. A spokesman for McConnell pointed us to a study by the U.S. Bureau of Labor statistics, Characterizations of Minimum Wage Workers, released in February of last year. Were familiar with it, having written a couple offact-checksrecentlyon the minimum wage. According to the report, of the 75 million people making hourly wages in 2012, about 1.6 million earned the minimum wage while another 2 million earned less than $7.25 an hour. (How does one earn less than the minimum wage? Certainexceptionsare carved out for vocational education students, full-time students employed by retail or service establishments, agriculture, or institutions of higher education, and those impaired by a physical or mental disability.) The underlying data in the report largely backs up McConnells claim. In fact, the report even says Minimum wage workers tend to be young. How young? Only 20 percent of individuals earning hourly wages are ages 16-24, but that demographic makes up half of all individuals earning at or below the minimum wage. About a quarter of those individuals are teenagers ages 16-19 and another 25 percent are 20 to 24 years old. Broadened to include 25-29 year olds, and nearly two-thirds of all workers making at or below the minimum wage are younger than 30. The older you get, the more likely youre making more than $7.25. But McConnell also described minimum wage jobs as entry-level. Thats a characterization with which some may take an issue. Entry-level jobs typically indicate positions that, while at the bottom of the totem pole, have potential for growth. Young adults take entry-level jobs at companies hoping to climb the career ladder. And while wages are lower, there is potential to see considerable salary increases and/or career advancement. A majority of minimum-wage jobs dont really fit that description. According to the report, two-thirds are part-time, and half of all minimum wage jobs are in the leisure or hospitality industry. This includes food service jobs like waiters and cooks, hotel employees or movie theater workers, among other jobs. While many of those jobs are traditionally held by young people, they dont typically lead to careers in those industries. The same can be said for retail jobs, which make up another 16 percent of all minimum wage-or-less positions. Our ruling McConnell said the minimum wage is mostly an entry-level wage for young people. The Bureau of Labor Statistics found that indeed half of all workers making a minimum wage are 16 to 24, and another 20 percent are in their late 20s or early 30s. Thats a large chunk of the minimum wage workforce, though about 30 percent of people making the minimum wage are 35 and older. McConnell also goes a bit too far in calling these jobs entry-level. For most young people, these are part-time jobs in the food or retail businesses or similar industries with little hope for career advancement. We rate McConnells statement as Mostly True. Stephen Colbert has intervieweda slew ofpresidential candidates in the first weeks of his new job hosting CBSThe Late Show, including Jeb Bush, Donald Trump, Vermont Sen. Bernie Sanders and Texas Sen. Ted Cruz. His time with Cruz on Sept. 21 stood out for a fact-filled back and forth about a major Republican role model, President Ronald Reagan. Colbert asked Cruz if he could agree with Reagans support of amnesty for undocumented immigrants and record of raising taxes amid budget shortfalls. Cruz said of course not before pivoting to Reagans most conservative accomplishments, one being that he signed the largest tax cut in history and spurred economic growth. You know, when Reagan came in, from 1978 to 1982, economic growth averaged less than 1 percent a year. Theres only one other four-year period where thats true. Thats true from 2008 to 2012, Cruz said. Colbert jumped in, saying But when conditions changed in the country, he reversed his worlds largest tax cut and raised taxes when revenues did not match the expectations. So its a matter of compromising. PolitiFact explored Cruzs point about economic growth inanother fact-check. We wondered if Colberts retort was on the money or overstated. (Its our first fact-check ofColbertin his new role  and the first one in five years, period.) Did Reagan really shift course on tax cuts when the growth stopped? A CBS press contact did not return an email for comment. Reagans tax cut As Cruz said, the Gipper really did cut taxes  with the help of Congress  in his first year as president. The largest tax cut in history that Cruz mentioned is in reference to the Economic Recovery Tax Act of 1981, a $38 billion phased-in cut ($99 billion in 2015 dollars). Put in the way that economists prefer to discuss tax cuts, it represented 1.91 percent of the countrys gross domestic product. This law included across-the-board cuts of about 30 percent to statutory income tax rates. As Colbert said, Reagan raised taxes, too. Two laws, one in 1982 and another in 1984, were especially dramatic. These laws generally raised taxes by removing tax loopholes, not by raising the tax rate, said Dean Baker, a liberal economist and co-founder of the Center for Economic and Policy Research. Still, Baker said, the loopholes were big ones. Reagans tax increases 1982:The most significant tax increase Reagan signed was also the first. The Tax Equity and Fiscal Responsibility Act of 1982 (yes, another law with a very sexy name) increased taxes by almost 1 percent of GDP. The 1982 tax increase was probably the largest peacetime tax increase in American history, said economist Bruce Bartlett, who advised Reagan on domestic policy and then worked as Treasury deputy assistant secretary for economic policy in the George H.W. Bush administration. (An analysis by Jerry Tempalski, an analyst in the Office of Tax Analysis with the U.S. Department of the Treasury,agrees.) This law was driven by pressure to attack the federal budget deficit, as well as the impression that Reagans tax-cutting was partially responsible for lower-than-expected tax revenues. Bartlett, who reviewed Reagans tax record forTax Notesin 2011, cited aTreasury estimatethat the 1982 law raised taxes by almost 1 percent of GDP, or about $150 billion in modern dollars. Specifically, it rolled back some but not all of the 1981 tax cut for writing off equipment, and it repealed 1981 safe harbor leasing provisions, said Stephen J. Entin, senior fellow at the Tax Foundation and former deputy assistant secretary for economic policy in the Reagan administration. 1983:A law Reagan signed in 1983 aimed to keep Social Security afloat by increasing payroll taxes and taxing Social Security benefits for some high-earners. This cost $24.6 billion, or almost $50 billion in 2015 dollars, through 1988, according to an administrationestimate. 1984:The Deficit Reduction Act that Reagan signed rolled back part of the 1981 cut on buildings, Entin said, with the idea that Congress would enact spending cuts. But many of those cuts were either never enacted or were later restored, Entin said. This led to $25 billion in tax receipts. Reagan also signed tax increases in 1985, 1986, 1987 and 1988 (as well as a couple other laws with revenue reductions). So where does that leave Reagans tax record on the whole? Its mixed. On one hand, revenues were lower as ashare of GDPin his last year in office (17.6 percent of GDP in 1988) compared to the year before he took office (18.5 percent of GDP in 1980), according to the White House Office of Management and Budget. However, the thrust of the 1981 tax cut that Cruz touted on Colberts show didnt prove to have lasting effects on the whole. A 2006 Treasury Departmentanalysisoffers another view of the plunge after the 1981 law and the subsequent changes that wound it back. Reagans staff tallied up the effect of major legislation on tax receipts over his tenure for his final budget proposal (page 4-4). The 1981 tax cuts comprised most of the total $275 billion in tax relief, but the other side of the ledger listed $133 billion in cumulative tax increases. Thus, Reagan took back about half the 1981 tax cut with subsequent tax increases, Bartlett wrote. Our ruling Responding to Cruzs assertion that Reagan signed the largest tax cut in history, Colbert said he reversed it and raised taxes when revenues did not match the expectations. Legislation that Reagan signed over his time in office and raised taxes did not completely reverse the 1981 Economic Recovery Tax Act. But the broader point Colbert makes is on point. Reagan agreed to raise taxes to deal with budget deficits, even if he wasnt enthusiastic about it. We rate the claim Mostly True. Sen. Jeff Merkley appeared at the new Childrens Center in Clackamas County to raise awareness about an increase in child abuse and, according to his news release, to highlight the correlation to the economic downturn.Even one case of child abuse or neglect is too many, and with the ongoing economic downturn, the numbers of Oregon children suffering from abuse is on the rise, said Merkley. We must do everything in our power to reduce the number of children being abused and help provide sanctuary to those in need.The Childrens Center received some federal money last year. And the visit was a good photo op for a freshman senator during a congressional break.But at Politifact Oregon, we wondered if child abuse really is on the rise and if there is actually a cause-and-effect connection between child abuse and dismal economic times.Merkley is correct about the increase: More Oregon children are suffering abuse and neglect.The Oregon Department of Human Servicesreportsthat 11,090 children were victims of abuse or neglect last year, a 6.4 percent increase from 2008.Population growth isnt the only culprit behind the higher numbers. The state reports that the rate of abuse increased from 11.8 victims per 1,000 children to 12.5 per 1,000.A check with the agencys number-crunchers indicates the trend holds this year, with abuse reports up between 6 percent and 7 percent between July 2009 and July 2010. Though reports dont always turn out to be confirmed cases, officials say they expect the number of child victims will rise again for 2010.But is the increase because of high unemployment?Merkleys spokeswoman, Courtney Warner Crowell, said she hadnt seen any research linking a rise in abuse to an economic downturn. But she said several people shed talked to blamed the increase in child abuse on the economy.But there isnt any statistical evidence drawing a direct link between increased child abuse and a bad economy.We cant say that factually and we cant prove it, says Katharine Cahn, executive director of the Child Welfare Partnership at Portland State University.The number of child abuse victims can rise, even in good times, Cahn says, simply because more people are reporting the abuse.State stats do show alcohol and drug abuse, domestic violence and parental run-ins with police among the common stress factors that contribute to child abuse.Cahn concedes that people do feel stressed and depressed when the economy goes bust and may drink or use drugs in an attempt to cope. And that, she says, may be the indirect tie to Oregons rising numbers.So, it appears that while Oregons junior senator was right about the numbers of kids abused, the sour economy may not be deserve all the blame. We find the claim Mostly True. Comment on this item. In March 2021, an online advertisement appeared to claim there was something special about the McDonald's golden arches logo. A page in the resulting story said that, in the 1960s, a psychologist named Louis Cheskin advised that McDonald's customers "associated the arches with a 'pair of nourishing breasts.'" page story  The advertisement in question.  "It's not just an 'M,'" read the picture that showed the McDonald's Golden Arches. "28 Hidden Images in Famous Business Logos (That You Never Noticed)." McDonald's Ahh, the famous Golden Arches! You probably realized that the "M" design stands for "McDonald's." However, you probably didn't know that the successful food chain's marketing team consulted a psychologist, Louis Cheskin, while creating their famed logo. Cheskin suggested that customers would unconsciously associate the arches with a "pair of nourishing breasts." Talk about subliminal symbolism. While it's misleading to say that Cheskin advised McDonald's when the logo was being created, we found that the main part of the claim was true. At a time when the company was considering ditching the golden arches, Cheskin advised McDonald's to keep them because they were, as Cheskin put it, "mother McDonald's breasts." The July 1995 issue of Reader's Digest appeared to be one of the sources of the information. While the issue wasn't available online for further reading, we found a story that cited the magazine in a Tennessee daily newspaper, The Jackson Sun. On July 24, 1995, the newspaper reported: July 1995 issue story The Jackson Sun Louis Cheskin, a specialist in the psychology of marketing who began his research in the 1930s [...] worked with McDonald's when it was about to abandon the arches as the architectural elements of its outlets. His research showed that the arches were great assets because they had "Freudian implications in the subconscious mind." Exactly what was meant by this was uncertain, but Davis Masten, who runs the company that Cheskin started, recalls that Cheskin also referred to the arches as "Mother McDonald's breasts" - a powerful association if you're replacing home cooking. Robert and Margaret Sneed, of Texas, were getting in their car at the McDonald's on Highland after lunch Saturday. They were en route to South Carolina through the Smokies. Asked if that was the association they had with the yellow arches of McDonald's, the retired couple laughed. "I believe that my only thought was a cup of coffee, fries, and a Big Mac," Robert Sneed said. "But I guess this is some kind of subliminal thing where we're presumably thinking this but not supposed to know we're thinking this, is that it?" "I think of an arch as being an entryway," Margaret offered. "I think of it more as being an entry to a restaurant, but then, I never was very imaginative." The newspaper also printed that "market research showed many people subconsciously connected" McDonald's golden arches "to mother and home cooking." In the 1997 book "The Total Package" by Thomas Hine, he published the same information, including the mention of "mother McDonald's breasts": book Cheskin worked with McDonald's at the time it was about to abandon arches as architectural elements of its outlets. He advised that the memory of the arches be kept in the form of the M in "McDonald's." His case was based, he said, on research that showed that "the arches had Freudian applications to the subconscious mind of the consumer and were great assets in marketing McDonald's food." In other words, Cheskin said, the arches are "mother McDonald's breasts, a useful association if you're replacing homemade food." We thank the reader who sent us information on this book. It helped to add to the data that showed the overall claim in this fact check is true. Another bit of credible reporting came from the BBC. In 2003, it printed a special article titled "Fast Food Factory." The story invited readers to "explore the past, present, and future of McDonalds and with it the fast-food industry." The piece mentioned the famed golden arches and its purported association to a pair of breasts: special article mentioned Attracting the Customers The logo for McDonald's is the golden arches of the letter M on a red background. The M stands for McDonald's, but the rounded m represents mummys mammaries, according to the design consultant and psychologist Louis Cheskin. In the 1960s McDonald's was prepared to abandon this logo, but Cheskin successfully urged the company to maintain this branding with its Freudian symbolism of a pair of nourishing breasts. This may seem funny, but it is no laughing matter to the industrial psychologists and marketing consultants who are paid millions to find new ways to seduce us into buying by manipulating our unconscious desires. We reached out to McDonald's and provided questions for our story, and the company responded by asking for our deadline. We heard back a second time when the company let us know that they may need more time. We reached out two additional times but did not receive any further responses. McDonald's In sum, it's true that, in the 1960s, Cheskin advised McDonald's to keep the golden arches at a time when the company was considering getting rid of them. On Oct. 25, 2021, the rating for this story was changed from "Research In Progress" to "Unproven" for the reasons mentioned at the end of the fact check. On Nov. 12, 2021, the rating for this story was changed from "Unproven" to "True" after we received information from a reader about a book that contained data on Cheskin's past. On April 5, 2021, former aide to U.S. President Trump Stephen Miller shared a photo on Twitter of the two in Trump's post-presidency, Mar-a-Lago office. As numerous publications and social media users have pointed out, one of the many items seen in the photo is a statue of Trump himself: a photo As numerous publications   Indeed, it is hard to come to the conclusion that the statue partially hiding behind Miller's right arm is anything other than a figurine or small statue of Trump: behind Miller's right arm   According to Politico, which analyzed several of the items contained in the former president's office, nobody they spoke to was sure where exactly the statue came from: According No sources knew the provenance of this mini-bust of Trump, and a Trump spokesperson didnt share any details about it when asked about it. A former senior White House official said it was most likely a gift that was sent in. Wed get tons of those  paintings, statues, etc. Because the statue is present in his office in Mar-a-Lago, we rate this claim as