I was speaking out on pension reform almost 17 years ago.
Next to jobs and the economy, public employee pensions have been among the biggest issues in many 2014 political campaigns. Ernest Almonte, an independent running for general treasurer, was asked during an interview that aired Oct. 5, 2014 on the second half of WLNE's On the Record whether the 2011 overhaul of Rhode Islands state pension system went far enough. First of all, Almonte said, I was speaking out on pension reform almost 17 years ago, warning elected officials that if you didn't take care of this problem, it would take draconian measures to fix it. As a matter of fact, he said, it got to the point of saying that, 'If you're not going to fix this, you should start, (instead of) sending your children and grandchildren birthday cards and Christmas cards, you should just send them invoices and just tell them the truth: You're passing on your debt to them,' So something had to be done. We wondered whether Almonte, who served as Rhode Island's Auditor General from 1994 to 2010, was prescient enough to be warning about problems with Rhode Islands public pension systems 17 years ago, and what kinds of reforms he was saying were needed. Almontes campaign sent us several documents from the auditor general's office. Only a few go back to late 1990s and the relevant ones dealt with pension payment problems in individual communities, not state employees. One was a 1998 letter to Coventry's treasurer saying that some of the town's pension plans have insufficient assets to meet projected benefits. That was 16 years ago. Another was a 1998 copy of a report by the Johnston Financial Review Commission, which Almonte chaired, warning that the town owed $3.2 million in required pension contributions for its employees. For example, Johnston hadn't paid into the firemen's pension fund for more than three years, putting it more than $1.3 million behind in its payments. We note that Almonte's comments in both of these reports are in dry auditor language. Some readers might not take that as the type of scary warning that Almonte says he made. But we also found a May 8, 1988 front-page Providence Journal story reporting how Almonte explained to more than 200 Johnston residents that their town was in deep financial trouble. To drive home the severity of the situation, the story said, Almonte gave examples that sometimes made the audience wince: A bottom-of-the-barrel credit rating. A time between April 1996 and March 1997 when the town's bank account was overdrawn for 146 days. Falling behind $3.19 million in required pension contributions for workers. And that's not all, Almonte said. Still to be reckoned with is an unfunded pension liability that hasn't been quantified, and could add up to untold millions, the story reported. Almonte's campaign also referred us toa March 1999 report, available on the Auditor General's website, for the 1997 fiscal year. It notes that five school districts, five municipalities and three police and fire units were delinquent to the tune of about $1.7 million in their pension payments. The state withheld school aid and traffic fine payments to six municipalities until they paid up. That was 15 years ago. If Almonte wasn't warning about a looming crisis in the state pension system in those days, that's because there wasn't one. His2000 audit of the state Employees' Retirement System, covering the fiscal year that ended in 1999, reported that the funded ratios -- the amount of money each plan had compared to the amount of money it was expected to need to cover its pension costs -- had been growing steadily for years. The ratio for state employees, for example, went from 73 percent in 1993 to 81 percent in 1998. In addition, all the plans had been getting the recommended amount of funding since at least 1996 and, in many cases, even longer. That would change. By 2006, the funded ratio for that plan had dropped to 55 percent. By 2009, it had only gone up to59 percentand the debate about pension costs was poised to explode. We found no documentation from that era suggesting Almonte was advocating thetype ofsweeping changes to the separate pension plans for state employees and teachers that were pushed by General Treasurer Gina Raimondo and approved by the General Assembly and Governor Lincoln Chafee. In an interview, Almonte argued that he was talking about the state's pension problem at the time  because late payments he was referring to were payments by cities and towns to the state-run Municipal Employees' Retirement System, also known as MERS, which is under the jurisdiction of the state treasurer. Reform is not just what you to do an employee or an employee's benefits, he said. I was advocating a reform of management to get the communities to make their payments on time, especially when the money being withheld by workers to help pay for pension benefits is being retained by the city or town. When payments are made late, you miss out on earnings, and that's the start of the problem because the problem compounds itself. Our ruling Ernest Almonte said, I was speaking out on pension reform almost 17 years ago. The comment was in the context of a question on the state's pension system. Its clear from documentation Almonte provided and information we found that Almonte was warning about problems years ago. But the documentation he could provide only dealt with problems in municipal plans, although some of those were in the MERS system run by the state. Because his statement is accurate but needs clarification or additional information, we rule itMostly True. (If you have a claim youd likePolitiFact Rhode Islandto check, email us at[email protected]. And follow us on Twitter: @politifactri.)
The Trump administration unveiled a one-page list of tax reform principles inspired by the theory that tax cuts can unleash enough economic growth to cover lost revenue. President George H.W. Bush famously derided this as voodoo economics, and present-day critics are no less dismissive of what they see as magical thinking by the White House. The Trump administration will say, 'Well, hey, tax cuts are going to create growth, growth is going to create revenue, that's going to offset all this deficit,' Rana Foroohar, a CNN economic analyst and Financial Times columnist, told CNN April 26. Well, there's no real evidence in the last 20 years that that has happened. We decided to investigate this claim. First, the big changes under the White House proposal: the business tax rate drops from 35 to 15 percent for both big and small corporations alike, personal income tax brackets go from seven brackets to three (10, 25, and 35 percent), and the so-called standard deduction -- the amount of personal income not subject to federal income tax -- will be doubled, while some other deductions are removed. Theres isnt much more detail than that, making it difficult to put a price tag on the proposal. The nonpartisan Committee for a Responsible Federal Budget, or CRFB, attempted to analyze the one-pagers potential effect on the debt, making a lot of assumptions along the way. Their best guess, which was quickly eaten up by Trumps critics on TV, was an increase to the debt of $5.5 trillion, or somewhere between $3 trillion to $7 trillion. Theres other ways to offset tax cuts than economic growth: you can raise rates on other taxes, like through a tax on imports, as House Republicans want. Or you can limit tax breaks, cut spending, or do some combination of these, and its certainly possible the Trump administration will explore these options. AWhite House fact sheetby chief economic advisor Gary Cohn on April 26 did make a passing reference to nixing some tax breaks for the wealthy. But the administration has offered no specifics on paying for the cuts, and as ofApril 20Treasury Secretary Steve Mnuchin was still insisting, The deal will pay for itself. So lets set aside for now the other ways the administration may seek to offset lost revenue from tax cuts. For Trumps tax cuts to pay for themselves, the economy would have to grow by $5.5 trillion, or roughly a sustained 4.5 percent, for the next 10 years, according to CRFB. Thats a mark that any president is unlikely to hit. Trump promised during the campaign to have4 percent growth per year.Treasury Secretary Steve Mnuchin has since said thetarget is 3 percent growth. In reality, the average annual growth rate since 2001 has been 1.8 percent,according to Vox. Most experts we interviewed concurred with Foroohar that the idea that tax cuts could spur the level of growth needed is not realistic. One economist went further than Foroohar, noting that steep tax cuts may actually impede economic growth. Several experts cautioned that isolating tax cuts as the sole cause of whatever economic conditions are to follow is more than a little tricky, since good or bad economic conditions can coincide with tax cuts and affect federal revenue. Another caveat is that tax cuts can be manipulated to look as if theyre boosting growth when theyre really not -- asweve shownbefore. While tax cuts dont pay for themselves fully, tax cuts can generate some growth. For instance, take a 2005 study by the Congressional Budget Office that asked what would happen if Americans got a 10 percent income tax cut. Under CBOs most optimistic projection, nearly one-third of the tax cut would be offset by additional tax revenue over 10 years. (Well get to their pessimistic projection soon.) N. Gregory Mankiw, a Harvard University economist and former chairman of the Presidents Council of Economic Advisers under George W. Bush, shared a similar view. A reasonable rule of thumb, in my judgment, is that about one-third of the cost of tax cuts is recouped via faster economic growth, Mankiw said. Edward Kleinbard, a professor of law and business at the University of Southern California, said smart corporate tax reform could stimulate the economy somewhat -- but at a net loss. A really well-designed corporate tax reform package, including a rate cut, would be accretive to growth, he said, but not enough to pay for any resulting large-scale deficits. So tax cuts can create some growth, according to the experts. But are there any historical cases of tax cuts producing so much growth they fully pay for themselves? I am not aware of any credible evidence (in the U.S.) over the last several decades of a broad-based tax cut paying for itself, said Alan Auerbach, an economist at the University of California, Berkeley. I don't think this is at all controversial among actual economists. Kleinbard was similarly emphatic: There is no time in modern history where tax cuts could be said to pay for themselves. According to Kleinbard, the 1981 tax cuts triggered massive federal deficits and were largely reversed within three years. The Tax Reform Act of 1986 was basically revenue neutral, he said, meaning tax cuts were virtually offset by spending cuts. He added that President Bill Clintons tax hike was followed by robust growth, while the George W. Bush tax cuts led to anemic growth. None of the experts interviewed cited evidence that tax cuts under President Barack Obama produced sufficient growth to pay for themselves either. On the contrary, theres some evidence that tax cuts can be a drag on the economy -- like the 2005 CBO study mentioned earlier. When the CBO studied the effects of a hypothetical 10 percent income tax cut for Americans, not all the projections were as rosy as the finding above. Under the CBOs most pessimistic projection, tax cuts would lead to a 3 percent increase in lost revenue over 10 years. Indeed, tax cuts can have a number of adverse effects that may actually impede growth, according to Kleinbard. One example is a phenomenon known as the crowding out effect. The basic idea is that tax cuts create deficits that cause the government to borrow more money and therefore enter deeper debt, which can make private sector borrowing more expensive. Our ruling Foroohar said, There's no real evidence in the last 20 years that growth from tax cuts has made up lost revenue. We searched high and low and found no economic experts who could point us to evidence of tax cuts fully paying for themselves. Neither the modern historical record (using fair benchmarks) nor government analyses we looked at supported the claim that tax cuts create enough growth to eventually offset lost revenue. On the contrary, theres evidence that tax cuts may actually hinder economic growth. We rate Foroohars statement True. Wisconsin Gov. Scott Walker has tried to sprinkle sugar on what many government workers see as the bitter pill hes proposing in his controversialbudget-repair bill.Lets see if what he is sprinkling is as sweet as he says it is.For many state and local government workers, losing collective bargaining power is the bitter pill. The bill also would require most public employees to pay more for pensions and health insurance.The hit would be $5,400 per year for a state employee who earns the average wage -- $50,000 -- and chooses the least-expensive family plan for health insurance, Walkers administrationsays.The sugar, at least the way the Republican governor presents it, is in another provision of the bill. It would prohibit union dues from being withheld from public employees paychecks. That means state and local government workers would have to pay their unions directly.According to Walker, if workers opt out of the union, they could save a fair amount of money.On Feb. 20, 2011, on the Fox News Sunday program, Walkersaidfor those workers who don't want to be a part of the union, if you don't want that deduction each month out of the paycheck, they should be able to get that $500, $600 or in some cases, $1,000 back that they can apply for their health care and their pension contribution.Walker made asimilarstatementthree days earlier on Fox televisions On the Record with Greta Van Susteren. And Washington Post columnist George Willwrotethat Walker told him that many employees could save $500 or $600 per year in union dues and that teachers could save up to $1,000.Lets find out if the governors figures are correct.Walker spokesman Cullen Werwie sent us adocumentthat he said came from the state payroll department. Payroll would know the amount of union dues for state workers, since it withholds them from state workers paychecks.The document indicates that annual union dues are as low as $208 for certain legal employees and $300 for apprenticesheet metal workers; dues are as high as $3,180 forplasterersand $3,465 forplumbers.The exact range, however, could be different because dues for some employees are a percentage of their pay, and the document does not spell out those amounts. Moreover, the document does not specify how many employees pay the various dues amounts that are listed, and it does not provide any averages. We asked Werwie for more information, but he had not responded by publication time.So, we contacted some of the major public employee unions to ask what their members pay annually in dues. Our list is not comprehensive, but it does cover tens of thousands of state and local government workers.General employeesMost of the 23,000 state workers who are members of American Federation of State, County and Municipal EmployeesCouncil24pay $420 per year in union dues, though some pay $492, said Bob Allen, spokesman forAFSCME-Wisconsin.They tend to be front-line workers such as correctional officers, administrative support staff, probation and parole officers and custodians, he said.Members of Local 1914 -- one of the units of Council 24 -- pay $470 per year, according to theduespageon that locals website. Those300membersare state employees in Eau Claire, Chippewa, Rusk, Clark and Taylor counties, and hold non-academic jobs at the University of Wisconsin-Eau Claire.Members ofAFT-Wisconsinwho earn over $34,000 per year pay about $510 per year in dues, said president Bryan Kennedy. AFT says it represents 17,000 public workers in 500 different classifications.Health care workersAnnual dues for the 15,000 members of theProfessional Patient CareUnitof Service Employees Union International range from about $192 for home care workers to $864 or more for senior nurses, said president Dian Palmer.TeachersMilwaukee Public Schools teachers paid $995 in dues in 2010, while educational assistants who worked more than 20 hours per week paid $469, according to thefiguresfrom the website of theMilwaukee Teachers Education Association.That unionsaysit represents more than 8,200 employees, including 6,000 teachers.Green Bay public school teachers pay $834 in dues, said Lori Blakeslee, spokeswoman for the Green Bay Education Association.The typical Wisconsin teacher who belongs to the states largest teachers union, the Wisconsin Education Association Council, pays $450 per year for the state and national portions of their dues, said WEAC spokeswoman Christina Brey. But the additional amount in local dues paid varies and Brey said she did not know what the range is. Both Milwaukee and Green Bay belong to WEAC.Lets return to the statement.In pushing his budget-repair bill, Walker said state and local government workers could stop paying union dues and take home $500 to $1,000 more per year in pay. He didnt say most or many, but his statement suggests that a significant number of public employees pay dues in that range. And we found thousands of public employees who do.We rate Walkers claim Mostly True. Claim:  No buyers can be found for a beautiful but cheap car because of the horrible smell that permeates it. LEGEND  Origins:  The story is told of a car sold for a fantastically low price, its only flaw being a persistent disagreeable odor. Someone had met the Grim Reaper in it and the remains were not discovered for many months. The smell clinging to the car was that of decomposed flesh; no amount of washing or scubbing would make it go away. Buyer after buyer was lured by the bargain, but each of them invariably returned the car. The possible source for this "death car" legend is explained in a 1959 book on folklore: In 1953 I was collecting Negro folklore in the tiny community of Mecosta in central Michigan, where a colony ofcolored people had Settled on the sand barrens shortly after the Civil War. Called on to speak on folklorebefore the crowd that gathered on Old Settlers Day, I related the case of the depreciated Buick, as an instance of contemporary folklore. That evening some of the young fellows pulled me aside and politely explained that the incident had occurred in their town. A white man named Demings, who owned a 1929  Model-A Ford, committed suicide in it in 1938, after his girl, Nellie Boyers, had a spat with him on a date. He chinked up all the cracks under the seat and on the floorboards with concrete, and then sniffed a hose he had connected to his tailpipe, while the motor ran.  This was in August, and the car and the body were not found until hunting season in October. A guide kept returning to the spot where Demings had pulled the car off the road into the brush, and seeing the car would say, 'That fellow's always hunting when I am.' Finally he investigated. This Model-A was painted all over with birds and fish, and was quite an eye-catcher. A user-car dealer in Remus sold the car to Clifford Cross, who tried every expedient to eradicate the smell. He reupholstered and fumigated the interior, in vain, and finally had to drive around in midwinter with the windows wide open. At length he turned the car in for junk. I talked with Clifford Cross and his friends who had ridden in the Ford. Here was the first verified case of the Death Car. Did this modern big-city legend originate with an actual incident in a hamlet of two hundred people in a rural Negro community and by the devious ways of folklore spread to Michigan's metropolises, and then to other states? Unlikely as it seems, the evidence from many variants, compared through the historical-geographical method of tracing folktales, calls for an affirmative answer. Though this would appear to be the beginning of the legend, folklorist Jan Harold Brunvand said of it, "Richard M. Dorson thought he had traced   'The Death Car' to a 1938 incident in the small town of Mecosta, Michigan, but later study turned up prototypical elements earlier in Europe." Though the make of the car continues to update as time marches on (Model A, Buick, Cadillac, Corvette, Jaguar), astute readers will note that the vehicle is almost always described both as new and of a model deemed to be highly desirable in the time of the story's telling. Unsellable or not, this is yet another of the "cheap car" legends in which a young lad's wet dream of a car is sold at a bargain basement price. (Another legend of this genre can be found on our $50 Porsche page.)  $50 Porsche Various homilies can be guessed at as the moral of the tale. "You get what you pay for" and "Don't attempt to profit from another's misfortune" being but two. Gail de Vos provides us with an especially intriguing one:  The offensive smell is perhaps not only the smell of death but that of filthy lucre. The prestigious sports car symbolizes wealth; the legends suggests that the only way working-class people can obtain such a product is if it is defective  in other words, if it stinks. Barbara "heaven scent" Mikkelson Sightings:   An episode of television's Seinfeld ("The Smelly Car," original air date 15 April 1993) featured a car whose stink (from a valet's B.O, not a decaying corpse) made it undriveable and unsellable. More smelly cars (of the rotting flesh variety) can be found in the movies Christine (1983) and Mr. Wrong (New Zealand, 1985). Christine Mr. Wrong Last updated:  12 March 2011 The Baby Train    Brunvand, Jan Harold.  The Choking Doberman.   New York: W. W. Norton, 1984.   ISBN 0-393-30321-7   (pp. 212-213). The Choking Doberman    Brunvand, Jan Harold.  The Mexican Pet.   New York: W. W. Norton, 1986.   ISBN 0-393-30542-2   (pp. 12-13). The Mexican Pet    Brunvand, Jan Harold.  The Vanishing Hitchhiker.   New York: W. W. Norton, 1981.  ISBN 0-393-95169-3  (pp. 20-22). The Vanishing Hitchhiker    Brunvand, Jan Harold.  The Study of American Folklore.   New York: W. W. Norton, 1998.  ISBN 0-393-97223-2  (p. 208). The Study of American Folklore    Czubala, Dionizjusz.  "The Death Car; Polish and Russian Examples."    FOAFTale News.  March 1992  (pp. 2-5).     de Vos, Gail.  Tales, Rumors and Gossip.   Englewood: Libraries Unlimited, 1996.  ISBN 1-56308-190-3  (pp. 109-112). Tales, Rumors and Gossip     Dorson, Richard.  American Folklore.   Chicago: Univ. of Chicago Press, 1961  (pp. 250-252). American Folklore    Emrich, Duncan.  Folklore on the American Land.   Boston: Little, Brown, 1972.  ISBN  0-31623-721-3  (p. 338).   Folklore on the American Land    Smith, Paul.  The Book of Nasty Legends.   London: Routledge & Kegan Paul, 1983.  ISBN 0-00-636856-5  (p. 79).  The Book of Nasty Legends The Big Book of Urban Legends 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. A new ad by Gov. Rick Scotts campaign has a simple message: Scott and his wife Ann have shown Florida their tax returns, so its only fair that former Gov. Charlie Crist and wife Carole show theirs. In thead released June 25 called Whats He Hiding, Scotts political group Lets Get To Work demands that Crist release not only his tax returns, but Caroles, too. The ad says the Scotts have released tax returns both in 2010 and for this years election. But millionaire Charlie Crist refuses to release his spouses tax returns, the ad says. Candidates for governor routinely disclose those returns. Alex Sink and Rick Scott both did it four years ago. Crist has said he wont be releasing his wifes tax returns, saying Scott was out of bounds for making the request and should apologize. PolitiFact Florida wondered, however, if spouses truly do routinely disclose their tax returns. Heres our disclosure: It depends on what you consider routine. A separate issue The practice of gubernatorial candidates themselves disclosing tax returns goes back a long time, but for this check well head as far back as Reubin Askew, who became governor in 1971 and released several years worth. Florida elected officials are required by law to file an annual statement showing their assets and liabilities. They are not required to release tax returns, but candidates for governor have traditionally done so. We should note that this generally applies to the general election candidates, and not always primary candidates. For example, Bill McCollum did not release his returns in 2010 while running in the primary against Rick Scott. As to whether spouses fess up their finances, well, thats an interesting history. Most candidates have filed jointly with their spouses. Jeb Bush and his wife Columba released several years worth of joint returns during Bushs years in office, and Rick and Ann Scott filed jointly. It wasnt until 2002, when Democrat Bill McBride ran against Bush, that the issue of a spouse filing separately came up. McBrides wife, Alex Sink, began to file separately from her husband specifically because her husband was running for governor, but in 2002 she released two years of tax returns under pressure from the Bush campaign. Sink had retired as president of Bank of Americas Florida operations in 2000. McBride, a lawyer who worked at Tampa firm Holland & Knight for many years, returned the favor in 2010 and released his returns when his wife ran for governor against Rick Scott (McBride died in 2012). Crist was a solo filer when he ran for governor in 2006, because he was single. He didnt marry Carole Crist until 2008. He has said they continue to file separately because he was a single guy for a long time. She's got her own business, and it's her business. Carole Crist isan owner of a family Halloween costume and novelty business, Franco-American Novelty Co., and has created a second company, Goddessey. Crist, a lawyer by trade like McBride, announcedthe release of three years of tax returns as the ad began airing. The next day, he released returns goingback to 2001, with promises to release more, going back to 1991. Candidates releasing their spouses separate returns has become more of an issue in the last couple of decades as more women become entrepreneurs independently of their spouses. Susan McManus, a University of South Florida political science professor, says the expectation of disclosing separate returns really took off when Walter Mondale chose Geraldine Ferraro as his Democratic running mate during the 1984 presidential campaign. Ferraro faced many questions from political opponents and the media about her husband John Zaccaros real estate company. They ultimately released the returns, and Ferraro admitted she was an officer in the company, albeit without the authority to sign company checks. In recent years the same expectation has come up in presidential campaigns; Sen. John McCains millionaire wife Cindy eventually released two years of individual tax returns during the 2008 presidential campaign amid Democratic pressure. But those are examples from presidential politics. In Florida, the question is whether two instances -- by the same couple, in McBride and Sink -- over the last 12 years constitutes spouses tax returns being released routinely, as Scott alleges. Its only recently that weve seen candidates spouses filing separate returns. How you feel about it as a voter likely depends on how you feel about the race and the candidates, McManus said. The interesting thing in this case is that attitudes about this are changing, she said. In the future were likely to see everyone routinely releasing everything. Our ruling Scott said candidates for governor routinely disclose spouses tax returns. It is routine when candidates file joint returns with their spouses. Its only recently that gubernatorial candidates and their spouses have started filing separate tax returns, though. When spouses file separately, there are two instances to look to, whenfirst Alex Sink and then her husband Bill McBride disclosed individual returns for their spouses respective gubernatorial runs in 2002 and 2010. So the trend of spouses who file separately is a new one, but one way or the other, spouses' returns have been released over the years. We rate the statement Mostly True. Claim:  Photograph shows Michelle Obama serving a government funded soup kitchen meal to a person with an expensive cell phone. REAL PHOTOGRAPH; INACCURATE DESCRIPTION Examples:  [Collected via e-mail, June 2009] Recently Michelle Obama went to serve food to the homeless at a government funded soup kitchen.   Cost of a bowl of soup at homeless shelter: $0.00 dollars Having Michelle Obama Serve you your soup: $0.00 dollars Snapping a picture of a homeless person who is receiving a government funded meal while taking a picture of the first lady using his $500 Black Berry cell phone and $100.00 per month cellular service: Priceless      Origins:  The above-displayed photograph is genuine, a snapshot taken on an occasion in March 2009 when Michelle Obama spent some time serving lunch to men and women at Miriam's Kitchen, a social service agency in Washington D.C., as part of the First Lady's effort to "spotlight local organizations, connect with the city and help those in need amid the economic crisis."   However, all the assumptions and implications of the text accompanying this picture are incorrect or unsubstantiated.  To wit:  The photograph does not depict anyone "receiving a government funded meal": Miriam's Kitchen is a privately funded organization with the goal of "providing individualized services that address the causes andconsequences of homelessness in an atmosphere of dignity and respect"; it is not government run or taxpayer funded. Miriam's Kitchen  A cell phone capable of capturing images (even a BlackBerry Pearl) is not necessarily a "$500 phone" with a "$100 per month cellular service."  Many much more affordable options are available, including cellular providers who give free phones to low-income customers under the Lifeline assistance program.  So a homeless person might very well carry a cell phone, as Scott Schenkelberg, the Executive Director of Miriam's Kitchen, observed when questioned about this photograph during an interview: BlackBerry Pearl affordable Lifeline interview Q: Since the First Lady's visit, both your guests and your food have been the subject of some criticism within the blogosphere. For example, some critics noted thatone of your guests had a cell phone and suggested that it was inappropriate to serve free food to someone who could afford a cell phone.  A: I suspect some people don't understand how inexpensive cell phones are, or how critical they are to this population. These days, you can purchase a cell phone at 7-11 for $10, then pay for minutes as you go. Our clients have a very fragile safety net. Many of them don't have shelter and are extremely vulnerable. For them, cell phones could literally be a lifeline. If they're looking for a job, the cell phone would also be incredibly important  can you even imagine trying to apply for a job without a phone number? Cell phones simply aren't luxuries anymore. If a guest can scrape together some money to purchase a cell phone, I think that's wonderful.  The assumption that a truly homeless person wouldn't have (or couldn't afford) a cell phone is also a mistaken one.  As Scott Schenkelberg noted, the ranks of the homeless served by organizations such as Miriam's Kitchen include not just the long-term, chronically homeless, but also the "newly homeless":  those who had recently been getting by economically until a sudden job loss or other reversal left them with nowhere to go: Until recently, we served mostly the chronically homeless, people who had fallen out of the economy long ago. More recently, we've been seeing more new faces, people who just fell into homelessness or other hard times. These people are generally high-functioning individuals who were hurt by the poor economy. It's very troubling to see previously self-sufficient people coming to Miriam's Kitchen in such high numbers. Last updated:  16 June 2009    Sweet, Lynn.  "Can Michelle Influence what We Eat, Too?"   Chicago Sun-Times.  6 March 2009  (p. C10).    Associated Press.  "First Lady Puts Service on the Menu."   The Australian.  7 March 2009. Who is the woman in a viral photo with former President Bill Clinton? She's a photographer and co-founder of a New York-based modeling agency. But if you pose that question to adherents of a Qanon conspiracy theory, you'll probably get a different answer: She's an associate of convicted sex offender Jeffrey Epstein and recruits children to come to the billionaire's island. Qanon conspiracy theory So how did this ordinary citizen get mixed up in the world of Q? It started with a single miscaptioned photograph that supposedly showed her on Epstein's private plane with Clinton:   While this appears to be a genuine, unaltered photograph, the conspiracy theorists spreading it get several things wrong about what it shows. Mainly, the photograph wasn't taken on a plane owned by Epstein, who was charged with new sex crimes related to child-sex-trafficking for prostitution in the summer of 2019.  Before we go any further, we should note that the Q conspiracy theory is built on speculation and wild assumptions. The woman has not been implicated in any legal proceedings related to Epstein, and she has not been charged with any crimes herself (Snopes is not identifying her to protect her privacy). Q conspiracy theory Indeed, Miami Herald reporter Julie Brown, who was fundamental in uncovering Epstein's alleged sex-trafficking crimes, told us that she never come across the woman's name during her investigation into Epstein: "I have never run across her name anywhere  and I checked with two people involved in the case for 12 years and they never heard of her. They suspect its BS internet conspiracy shit."  Julie Brown fundamental We also dug through dozens of Q posts, conspiracy primers, Qanon explainers, and 4chan and 8chan threads attempting to connect her to Clinton and Epstein, but we've yet to see any concrete evidence. Instead, we found invented explanations for out-of-context pictures and illogical leaps of faith being accepted as fact.  The above-displayed picture has been online since 2006. It was originally shared with a caption saying it showed Clinton with a 19-year-old college student aboard billionaire venture capitalist Ron Burkle's private plane. It wasn't until several years later (circa 2017) that the "Pizzagate" conspiracy community picked up this picture and started claiming that it showed a woman with Clinton aboard Epstein's plane (popularly dubbed the "Lolita Express"). The fact that this photograph was circulating for more than a decade before it became attached to claims relating to Epstein should immediately raise red flags.  shared billionaire venture capitalist circa 2017 Pizzagate Furthermore, photographs reportedly showing the inside of Epstein's plane don't appear to match with this viral picture. Here's a comparison of the viral Clinton photograph and a picture of Epstein's plane obtained by Radar Online: inside of Epstein's plane Radar Online   While we may be entering dot-connecting territory here, the design on the wall behind Clinton bears a resemblance to a photograph from Business Insider supposedly showing the interior of Canadian businessman Frank Giustra's plane. Giustra and Clinton, like Burkle and Clinton, were frequent travel partners: Canadian businessman frequent travel   Angel Urena, Clinton's spokesperson, also denied that the viral image was taken aboard Epstein's plane: "This photograph was not taken on Epsteins airplane." In addition to misidentifying the location of this photograph, Qanon believers also frequently share this photograph with the claim that the woman was underage at the time the photograph was taken. Again, this is based on pure speculation: speculation   When Gawker first shared this photograph in 2006, the organization claimed it showed a "19-year-old college student." This appears to be accurate. In 2009, The Cut identified the woman as a "22-year-old" in an article about her photography. This would make her approximately 19 in 2006 when the photograph was allegedly snapped.  Clinton did fly on Epstein's plane a number of times. However, the above-displayed photograph does not document one of these trips. This photograph shows Clinton with a young woman aboard a plane more likely owned by either Burkle or Giustra.  number of times While the question of who she is may send conspiracy theorists down a rabbit hole of assumptions and speculation, the real answer is quite simple: She is a photographer and co-founder of New York-based modeling agency who was needlessly thrown into this world of conspiracy because she once appeared in a photograph on a plane with Clinton.  co-founder Rothschild, Mike.  "QAnon is Attacking a Random Woman in a Disturbing and Dangerous Way."
  Daily Dot.  21 March 2019. Rothschild, Mike.  "QAnon is Attacking a Random Woman in a Disturbing and Dangerous Way."
  Daily Dot.  21 March 2019. Ellia, Emma.  "Crying 'Pedophile' is the Oldest Propaganda Trick in the Book."
  Wired.  1 August 2018. Neon Revolt.  "D-Room. DINING ROOMS. HRC +++ + +++++ Unlocked? #QAnon #GreatAwakening."
  7 April 2018. NWO Report.  "Footage Of Abused Children Captured On Jeffrey Epsteins Pedo Island."
  15 April 2018. Radar Online.  "Tour for the First Time: Inside Bill Clinton Pal's 'Lolita Express' - The Pedophile Billionaire's Sex Jet He Flew On 11 Times."
  11 July 2016. Alterman, Eric.  "If Jeffrey Epstein Faces Justice, Itll Be Thanks to a Local Newspaper."
  The Nation.  17 July 2019. Brown, Julie.  "How a Future Trump Cabinet Member Gave a Serial Sex abuser the Deal of a Lifetime."
  Miami Herald.  28 November 2018. Snopes is still fighting an infodemic of rumors and misinformation surrounding the COVID-19 pandemic, and you can help. Find out what we've learned and how to inoculate yourself against COVID-19 misinformation. Read the latest fact checks about the vaccines. Submit any questionable rumors and advice you encounter. Become a Founding Member to help us hire more fact-checkers. And, please, follow the CDC or WHO for guidance on protecting your community from the disease.  fighting Find out Read Submit Become a Founding Member CDC WHO In April 2020, millions of Americans who lost income due to circumstances related to the COVID-19 pandemic were waiting on promised relief payments from the United States government. So when news broke that U.S. President Donald Trump was making the "unprecedented" move of having his name added to these stimulus checks, a decision that could potentially delay the arrival of these checks by several days, many citizens took to social media to voice their displeasure, as in the example below: millions of Americans social media   Trump's name is truly being added to the COVID-19 stimulus checks, otherwise known as Economic Impact Payments. As of this writing, however, officials at the U.S. Treasury Department insist this will not result in any delays.  The Washington Post first reported on Trump's decision on April 14, 2020. According to the news outlet, Trump's name is expected to appear in the memo line of the check, not as the payment's official signatory, and that this will be the "first time that a president's name appears on an IRS disbursement": reported The Treasury Department has ordered President Trumps name printed on stimulus checks the Internal Revenue Service is rushing to send to tens of millions of Americans, a process that could slow their delivery by a few days, senior IRS officials said. The unprecedented decision, finalized late Monday, means that when recipients open the $1,200 paper checks the IRS is scheduled to begin sending to 70 million Americans in coming days, President Donald J. Trump will appear on the left side of the payment. It will be the first time a presidents name appears on an IRS disbursement, whether a routine refund or one of the handful of checks the government has issued to taxpayers in recent decades either to stimulate a down economy or share the dividends of a strong one. Treasury officials disputed that the checks would be delayed. While Trump's name will appear on these stimulus checks, we can't predict whether these payments will be delayed or go out on time. A Treasury Department official said in a statement that "absolutely no delay whatsoever" would occur:  statement "Economic Impact Payment checks are scheduled to go out on time and exactly as planned  there is absolutely no delay whatsoever ... In fact, we expect the first checks to be in the mail early next week which is well in advance of when the first checks went out in 2008 and well in advance of initial estimates." It should also be noted that many Americans will be receiving their stimulus payments via a direct deposit. It's unclear how many people will receive hard paper checks bearing Trump's name and how many will receive a digital payment.  An IRS official told Fox News that the number of people who will receive paper checks was subject to a "number of variables, including how much info the IRS obtains through the Non-Filers Enter Payment Info web portal and the Get My Payment portal launching [April 15] at IRS.gov. Fox News These Economic Impact Payments were included in the $2.2 trillion stimulus package that Trump signed in late March 2020. According to the IRS, direct-deposit payments had already started going out as of the second week in April. Those waiting on a paper check, however, may not see their payments for several weeks. (If you're waiting on a payment, you can check the status of your check on a recently launched web app from the IRS.) several weeks web app To sum up: It is true that in April 2020, the U.S. government made the unprecedented move of adding the president's name to stimulus checks issued by the IRS in response to the COVID-19 pandemic. Although an IRS official said this could slow the process and delay the delivery of checks, Treasury officials insisted that the checks would still go out on schedule.  Paine, Neil.  "More Than 16 Million Americans Have Lost Their Jobs In The Past Three Weeks."
  Five Thirty Eight.  9 April 2020. Raju, Manu; Fox, Lauren; Klein, Betsy.  "Some Americans Could Wait 20 Weeks to Receive Stimulus Checks, IRS Tells House Democrats."
  CNN.  2 April 2020. Olson, Tyler and John Roberts.  "Trump's Name Will be Added to Stimulus Checks."
  Fox News.  15 April 2020. Acosta, Jim and Caroline Kelly.  "Trump's Name Will be Added to Stimulus Checks."
  CNN.  15 April 2020. Acosta, Jim and Caroline Kelly.  "Trump's Name Will be Added to Stimulus Checks."
  CNN.  15 April 2020. Lederman, Josh Phil Helsel.  "Trump's Name Will Appear on Coronavirus Relief Checks."
  NBC News.  14 April 2020. Claim:  E-mail reproduces a 1999 newspaper article warning about potential troubles with Fannie Mae. Status:  True. Example:  [Collected via e-mail, September 2008] Right out of the pages of the NY Times!!!And look at the date..!!!  September 30, 1999Fannie Mae Eases Credit To Aid Mortgage Lending  In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders. The action, which will begin as a pilot program involving 24 banks in 15 markets  including the New York metropolitan region  will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.  [Rest of article here.] here Origins:  In any crisis, one of the most common reactions is to ponder the question, "How did we get into this mess?"  People begin to search for explanations about who was responsible for bringing about the current state of  affairs, who had the ability to head it off (but failed to act or was thwarted), and who foresaw the looming danger (but declined to speak up or was ignored).  With the United States currently in the throes of an economic crisis, of which one symptom was the September 2008 government takeover of the foundering Federal National Mortgage Association (commonly known as Fannie Mae), a nine-year-old warning about the home mortgage underwriter's being vulnerable to economic problems that could require government rescue was bound to pique public interest. On 30 September 1999, the New York Times published an article entitled "Fannie Mae Eases Credit to Aid Mortgage Lending" by Steven A. Holmes.  The complete text of the article is available online, but in a nutshell the Times reported that Fannie Mae was easing its credit requirements for home mortgage loans in response to increasing pressure from a variety of groups: text  Clinton administration officials who wanted Fannie Mae "to expand mortgage loans among low and moderate income people" (particularly minority groups).  Stockholders who wanted Fannie Mae "to maintain its phenomenal growth in profits."  Banks, thrift institutions and mortgage companies (from whom Fannie Mae purchases loans) who wanted the company to facilitate  "more loans to subprime borrowers." In light of recent events, what caught the attention of most readers was a couple of paragraphs in the middle of the article cautioning about the possible consequences of Fannie Mae's loosening its credit requirements: In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.  "From the perspective of many people, including me, this is another thrift industry growing up around us," said Peter Wallison a resident fellow at the American Enterprise Institute. "If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry." Another New York Times article that has attained a significant amount retrospective interest is an 11 September 2003 article entitled "New Agency Proposed to Oversee Freddie Mac and Fannie Mae" by Stephen Labaton, which reported on the efforts of the Bush administration to create a new regulatory agency to assume oversight of those mortgage lenders: article The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago. Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry. The new agency would have the authority, which now rests with Congress, to set one of the two capital-reserve requirements for the companies. It would exercise authority over any new lines of business. And it would determine whether the two are adequately managing the risks of their ballooning portfolios. The plan is an acknowledgment by the administration that oversight of Fannie Mae and Freddie Mac  which together have issued more than $1.5 trillion in outstanding debt  is broken. A report by outside investigators in July concluded that Freddie Mac manipulated its accounting to mislead investors, and critics have said Fannie Mae does not adequately hedge against rising interest rates. Of especial interest to current readers were the following paragraphs about Congressional resistance to the Bush administration's regulatory proposal: Significant details must still be worked out before Congress can approve a bill. Among the groups denouncing the proposal today were the National Association of Home Builders and Congressional Democrats who fear that tighter regulation of the companies could sharply reduce their commitment to financing low-income and affordable housing. "These two entities  Fannie Mae and Freddie Mac  are not facing any kind of financial crisis," said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. "The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing." Last updated:  2 October 2008    Sources:   Holmes, Steven A.  "Fannie Mae Eases Credit to Aid Mortgage Lending."   The New York Times.  30 September 1999.    Labaton, Stephen.  "New Agency Proposed to Oversee Freddie Mac and Fannie Mae."   The New York Times.  11 September 2003. A Facebook post resembling a genuine news item reporting that musician Kid Rock had been found dead at his home was circulated over 4th of July weekend in 2017: circulated   Although this post resembled a genuine news item, it was actually a product of the "prank" web site Channel23News.com. Channel23News.com Channel23News.com  enables users to "prank" their friends by creating and sharing fake news stories. The user provides the headline, a brief text about the fake news item, and an image, and the web site formats this content to resemble a genuine news bulletin posted via social media: Create A Prank And Trick All Your Friends! Simply Create Your Own Prank And Then Share It On Your Social Network Pages! Tips: You must be creative but keep in mind to make it fun.Fake Title: Choose a catchy title for your joke. Make your friends curious.Description: Be creative and make your friends curious.Image: Upload one or search one via google images Although these items resemble real news items when they are shared on social media, readers who click through to visit the underlying article and web site are greeted with a "You Got Owned" meme and the following disclaimer:   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.