Why Is Charles Shaw Wine So Cheap?
Claim:  Charles Shaw wine was sold cheaply because airlines could no longer use corkscrews after 9/11 and dumped their stocks of wine.  Origins:  We tend to equate quality with cost, so the appearance of an underpriced wine of surprising virtue is bound to spark its share of interesting backstories.  We view wine as a luxury item, and since we reject the intellectual construct that such an item can be both good and inexpensive, we instead seize upon plausible-sounding (but apocryphal) tales to explain the disparity between cheapness and quality.  Good wine must be expensive, and if a good wine is being vended at a bargain price, there must be a calamitous reason for this fortuity. In early 2002, rumors of airlines dumping their Merlot (and the like) were launched from this springboard. As the Los Angeles Times noted in a 2002 article about the burgeoning sales of Charles Shaw label wines: The morning after a friend served Anna McNeal a glass of Charles Shaw Merlot, she made a beeline to the Mid-Wilshire Trader Joe's to stock up on the wine selling at an astonishing $1.99 a bottle. "I had to come and get a case," she said in a checkout line with half a dozen other shoppers who had somehow heard of the mysterious "Napa" wine. Since it was introduced in February, Charles Shaw wine has gained a cult-like following in Southern California, with wine drinkers backing their cars up to the loading dock of the Los Angeles-based discounter to lay in a supply of the Trader Joe's exclusive. "It's selling like crazy," said Jon Fredrikson, a wine consultant based in San Mateo County. "A great story for consumers." Why was such a popular wine (Charles Shaw was one of the top 20 brands in the U.S.) being sold so cheaply?  As usual, consumers  collectively created several inventive urban legend-like explanations for this seemingly inexplicable phenomenon:  Security regulations enacted after the September 11 terrorist attacks prohibited the carrying or use of corkscrews on commercial flights, so several airlines dumped their large stocks of wine on the market, thereby depressing prices.  Financially-distressed United Airlines attempted to raise some quick cash by selling its food service stocks, including an ample supply of Charles Shaw wine.  Charles Shaw himself, engaged in a bitter divorce struggle, attempted to reduce the value of his winery's assets by flooding the market with cheap wine. Also as usual, the real explanation why many wine brands (not just Charles Shaw) could be had so cheaply at the time (2001) was a mundane one: the market was experiencing a wine glut.   The wine boom of the 1990s led vineyards to increase production, but a downturn in the U.S. economy   and the effects of September 11 resulted in a greatly lessened demand (particularly in the restaurant industry), creating such an oversupply that many wines were selling for less than the cost of production. Some vintners in northern California were even allowing their grapes to wither on the vine because the cost of picking them exceeded their market value. The Charles Shaw label (known in local slang as "Two-Buck Chuck") was the focus of those "cheap wine" rumors because it bore a prestigious Napa label, even though it sold for less than $2 per bottle.  The catch was that it's made with cheaper grapes from California's Central Valley rather than more desirable grapes from the Napa Valley, but because the label's parent company does own a winery and bottling facility in Napa, it is allowed to put "Napa" on the Charles Shaw label (which only indicates that the wine is "bottled and cellared" in Napa) even if the grapes used in the wine actually come from some other part of California: Napa Valley [W]ine industry experts say that despite the classy Napa label, there probably isn't a hint of those pricey grapes in a bottle of Charles Shaw Merlot, Chardonnay or Cabernet Sauvignon.  Even with the depressed market, grapes from Napa sell for around $2,000 a ton, said Brian Sudano of Beverage Marketing Corp. To make money on a $2 bottle, he added, a vintner would have to buy grapes for around $200 a ton  the price of less desirable Central Valley grapes. This summer the market price for those grapes hit a low of $60 a ton. Swimming in excess wine, [Bronco Wine Co. head] Franzia revived the Charles Shaw label, believing it would be more cost-effective to dump his wine on the consumer market than to pour it on the ground. Taking advantage of the depressed wine grape market, he also bought up excess stock from other Central Valley vintners, according to several wine industry sources. "Franzia was able to take advantage of distress sales by other vineyards, said [wine consultant Jon] Fredrikson. "And he's got the high-speed production lines to do it and still make money." The Bronco Wine Co. produces a variety of low-cost wines, and its president, Fred Franzia, has earned the enmity of plenty of other Wine Country  citizens: Franzia was forced to step down as Bronco's president for five years after Bronco was fined $3 million in 1993  for misidentifying grape varietals on its labels, and other Napa vintners have long been disputing Bronco's use of "Napa" in the names of wines, such as their "Napa Ridge" variety, made from grapes grown elsewhere (but so far the courts have sided with Bronco).   That enmity was famously (albeit accurately) expressed in 2011 by Chris Knox, a self-described vintner who once caustically asserted on Quora, in a since deleted response to an inquiry about why Trader Joe's wine (and the Charles Shaw blend in particular) was sold so cheaply, that those wines were inexpensive to buy because they were ... well, made cheaply: asserted The basic gist of it all is that Two Buck Chuck is owned by Bronco Wines, which is owned by Fred Franzia, a trash-mouthed, unapologetic downright crude and shrewd business man who sees it as his mission to pretty much remove any shred of pretentiousness (and dare I say integrity and quality along with it) from the wine world.   He started by buying the then failing Charles Shaw label years ago along with massive amounts of bulk wine in the 90's for pennies on the dollar and a staggering 35,000 acres of land in the very cheap San Joaquin Valley which he then planted to vines.  That gives his Bronco Wines the prestige of holding the most acreage of vines of any American winery, even surpassing Mondavi and Gallo. A few things to keep in mind about his vineyards: one is that they are located in what is known as the Central Valley in the California wine world which is notoriously flat and quite hot producing massive yields of overripe grapes.  The other thing is that Fred Franzia is no dummy  he planted those vineyards in such a way as the rows run north-south, giving the vines maximum sun exposure and he made the rows as long as he possibly could, minimizing the number of turns his tractors would need to make.  And third, these aren't hand-picked vineyards ... they are all machine harvested.  And that means these large tractors with huge claws go down the rows of vineyards grabbing the grapes and depositing them in its huge receptacle.  And it not only grabs ripe grapes, but unripe and down right rotten ones as well and throws them all together.  Add to that leaves, stems and any rodents, birds, or insects that may have made those vines their home  they all get thrown into the bin as well.  And guess what?  You think there's going to be any sorting when that truck arrives at the winery (or should I say processing facility)?  Nope.  Everything, and I do mean everything (including all those unripe grapes, rotten grapes, leaves, stems, birds, rodents, and insects) gets tossed into the crusher and transferred to large tanks to ferment.  So think about all the animal blood and parts that may have made their way into your wine next time you crack open that bottle of Two Buck Chuck!  Hardly even seems worth the $2 does it? If you were to taste that wine right after it was made, I guarantee you it would be undrinkable.  They will then manipulate the finished wine in whatever way necessary, including adding sugar or unfermented grape juice if needed to make the wine palatable.  And then the wine goes into bottling, packaging and shipping facilities, all of which Fred Franzia owns himself.  They then get put on trucks (also owned by Fred Franzia) and shipped to Trader Joe's.  The only part of the process Fred doesn't own is Trader Joe's itself and I'm sure if he got his way, he'd include that in his empire as well. So the summary is this  to make $2 wine one must compromise all sense of integrity and quality, own tens of thousands of acres of vineyards in the worst possible wine region possible where land is incredibly cheap and yields are exceptionally high, use machines to execute every part of a homogenized system that substitutes manipulation for hand crafted quality, and own every step of the winemaking process including bottling, packaging and distribution, all while giving the finger to the entire wine industry and plowing down anyone who gets in your way. According to a CNBC report on the controversy engendered when Knox's comments were widely republished three years later: Franzia does use mechanized harvesting, as do an increasing number of grape growers. He insists the machines shake loose everything but the grapes, and there are other methods along the way to filter out leaves, twigs and animal residue. "We're in the grape-picking business," he said. "We're looking for quality wines and quality grapes. We're not looking for animals." Some animal matter does end up in winemaking, as it does in almost all agricultural products. "If you worry about things like that, you shouldn't eat anything, you shouldn't drink anything," Franzia said. "When the wine's fermenting, they're going to eliminate anything that's possibly there." But what about this mysterious "Charles Shaw"?  Was he a real person? Indeed he was.  Shaw, a Stanford Business School graduate, bought a Napa winery with his wife, Lucy, in 1974 and began to produce Charles Shaw Beaujolais.  However, after the Shaws divorced in 1991, they sold the winery. The Charles Shaw label possessed a good reputation, though, and Bronco Wine Co., a mass-market wine conglomerate located in the Central Valley's Stanislaus County, bought it up and revived it in 2002 for sales of a line of inexpensive wines through the Trader Joe's chain of grocery stores. Trader Joe's Additional information:        Charles Shaw   (Interbrand)   Last updated:  15 August 2014    Brown, Corie.  "Hard Times at the Winery? Not for Everyone."   Los Angeles Times.  26 February 2003  (p. F1).    Emert, Carol.  "Wine Drinkers Gaga Over 'Two-Buck Chuck'."   San Francisco Chronicle.  26 December 2002.    Moran, Tim.  "$1.99 Wine Is Hottest Deal in Dodge."   The Modesto Bee.  25 December 2002.    Wells, Jane.  "The Really Big Ruckus Over 'Two Buck Chuck.'"   CNBC.  14 August 2014.
Mallard ducks frequently make their nests at ground level, but for whatever reason a female Mallard in downtown Spokane, Washington, chose a cement awning ten feet up an office building for her nesting site.  As detailed in viral email at the time, the duck laid her clutch of eggs just outside the window of Joel Armstrong, a senior loan officer at Sterling Savings Bank, and he arrived at work one day in May 2008 to find the ducklings hatched and the mother standing on the edge of the awning.  As Armstrong watched, mama duck then flew down to the sidewalk below, and her ducklings started lining up on the ledge to jump down onto the hard concrete below to join her:   Something really amazing happened in Downtown Spokane this week and I had to share the story with you. Some of you may know that my brother, Joel, is a loan officer at Sterling Bank. He works downtown in a second story office building, overlooking busy Riverside Avenue. Several weeks ago he watched a mother duck choose the cement awning outside his window as the uncanny place to build a nest above the sidewalk. The mallard laid nine eggs in a nest in the corner of the planter that is perched over 10 feet in the air. She dutifully kept the eggs warm for weeks and Monday afternoon all of her nine ducklings hatched.   Joel worried all night how the mamma duck was going to get those babies safely off their perch in a busy, downtown, urban environment to take to water, which typically happens in the first 48 hours of a duck hatching. Tuesday morning, Joel came to work and watched the mother duck encourage her babies to the edge of the perch with the intent to show them how to jump off!  The mother flew down below and started quacking to her babies above. In his disbelief Joel watched as the first fuzzy newborn toddled to the edge and astonishingly leapt into thin air, crashing onto the cement below. My brother couldn't watch how this might play out. He dashed out of his office and ran down the stairs the sidewalk where the first obedient duckling was stuporing near its mother from the near fatal fall.   Joel looked up. The second duckling was getting ready to jump! He quickly dodged under the awning while the mother duck quacked at him and the babies above. As the second one took the plunge, Joel jumped forward and caught it with his bare hands before it hit the cement. Safe and sound, he set it by the mamma and the other stunned sibling, still recovering from its painful leap. One by one the babies continued to jump to join their anxious family below. Each time Joel hid under the awning just to reach out in the nick of time as the duckling made its free fall. The downtown sidewalk came to a standstill. Time after time, Joel was able to catch the remaining 7 and set them by their approving mother.   At this point Joel realized the duck family had only made part of its dangerous journey. They had 2 full blocks to walk across traffic, crosswalks, curbs, and pedestrians to get to the closest open water, the Spokane River. The onlooking office secretaries then joined in, and hurriedly brought an empty copy paper box to collect the babies. They carefully corralled them, with the mother's approval, and loaded them up into the white cardboard container. Joel held the box low enough for the mom to see her brood. He then slowly navigated through the downtown streets toward the Spokane River, as the mother waddled behind and kept her babies in sight. As they reached the river, the mother took over and passed him, jumping into the river and quacking loudly. At the water's edge, the Sterling Bank office staff then tipped the box and helped shepherd the babies toward the water and to their mother after their adventurous ride.   All nine darling ducklings safely made it into the water and paddled up snugly to mamma duck. Joel said the mom swam in circles, looking back toward the beaming bank workers, and proudly quacking as if to say, 'See, we did it! Thanks for all the help!   Thankfully, one of the secretaries had a digital camera and was able to capture most of it (except the actual mid-air catching) in a series of attached photographs. Please join me in celebrating my brother  The Downtown Duck Hero!  [Ed. note: Yes, we're aware that the captions to the pictures displayed above reference nine ducklings, even though ten are plainly visible in some photographs.] Joel Armstrong himself described what happened for Spokane television station KREM: "The first duckling goes to the edge and... smack. Just hits the sidewalk," he said. Horrified, Armstrong darted out of his office and to the sidewalk below. The duckling laid motionless for about 10 seconds before regaining its senses. The next thing Armstrong knew, all the ducklings had instinctively lined up on the ledge ready to follow the first one's lead. Now lined up a like a centerfielder, Armstrong proceeded to shag ducks like falling baseballs from the sky with his bare hands. "In one instance two jumped at the same time," he said. Armstrong caught both. "I truly think the entire time the mother duck could sense I was trying to help," he said. "She just stood there and allowed me to catch them." Armstrong and some of his Sterling Savings co-workers then tried to escort the mother and her offspring to the Spokane River, but the ducklings were too slow to dodge traffic and make it all the way to the water under their own power.  So their human helpers obtained a cardboard box, placed the ducklings into it, and walked them to the river, where the little fowl quickly took to the more hospitable aquatic environment. "It was amazing watching them jump," Armstrong said. "Could you imagine the second day of your life having to jump from a building to get home?"  Armstrong's story quickly spread on the Internet in the form of the  narrative reproduced above, put together by his sister, Candace Mumm. narrative In May 2009, the "duckling rescue" scenario was repeated when a second brood of ducklings hatched on the ledge at Sterling Savings Bank and was once again caught by Joel Armstrong as they jumped from their nest. hatched Variations:  A March 2009 variant shifted the setting of this piece from Spokane to San Antonio; the duckling savior to "Michael R" (said to be an accounting clerk instead of a loan officer); and the bank to "Frost Bank."  Also, instead of just "onlooking secretaries" helping corral the ducklings, the variant reported that "several San Antonio Police Officers" helped get the ducklings into the box to be carried to the river.  Blocker, Kevin.  "Man Catches Ducklings Jumping from Ledge."
  KREM-TV [Spokane, WA].  26 May 2008.

 KREM-TV [Spokane, WA].   "Duck Makes Nest on Spokane Office Ledge ... Again."
   1 May 2009.

 KREM-TV [Spokane, WA].   "Duck Family's Amazing Journey Caught on Tape."
   19 May 2009. Claim:  News about swine flu cases in New Orleans has been suppressed to avoid interfering with attendance at Jazz Fest.  Example:  [Collected via e-mail, April 2009] I just got this email from a friend of mine whose co-worker went to the doctor today:     "The secretary in my office spoke to her mother's doctor this morning.  He told her the following and urged her to pass this on to everyone she knows.  She said this doctor is not normally the alarmist type but was very adamant about this.  He is a doctor at East Jefferson Hospital, he said the following: There have been 65 cases of Swine Flu in the New Orleans area in the past 48 hours.  This is not yet public knowledge because Nagin doesn't want to hurt Jazz Fest.  The boats that are docking and coming in from Mexico could be the culprits, but no one knows yet.   His instructions are as follows: For the next 10 days (he said by then we will all know about this) do not use public restrooms! Stay away from large crowds and anyplace with low income workers, he specifically said Wal-Mart.  He said this should be taken very seriously because since we are not being made aware of it, it could literally spread here like wildfire.  He recommended buying Lysol wipes and wiping down anything you have to use that can be accessed by the public. He also contacted his child's school and recommended they cancel the school play. This came directly from the doctors mouth!" Origins:  The above-quoted e-mail began circulating on Tuesday, 28 April 2009. While its author is unknown, the quality of the information it proffers is not: it's bunk. As Gina Swanson, a news reporter with WDSU-TV in New Orleans said of the item in her 29 April 2009 piece about the e-mailed rumor: "The e-mail alleges that there are dozens of cases, confirmed cases, of swine flu here at East Jefferson Hospital, and doctors are not  alerting the public. We spoke with doctors here [at East Jefferson Hospital] this afternoon. They want to set the record straight  they say simply that's not the case." Said Dr. John Wales, Director of Emergency Medicine, East Jefferson Hospital, in that interview:"At our hospital, there's no reported cases of swine flu. We've had one case a couple of days ago and another case about a week ago of influenza A, which is very typical at the end of the flu season, which is where we are now, for a couple of flu cases to come in and test positive for Flu A. But as far as we know, there are no cases of swine flu at East Jefferson." As East Jefferson Hospital said in its 30 April 2009 online denial of the rumor: "East Jefferson General Hospital would like to dispel a current Internet rumor claiming that an unnamed physician confirms there are 65 cases of H1N1 Flu, commonly known as swine flu, in the New Orleans area. There is no truth to this. At this time, there are no confirmed cases of swine flu in the state of Louisiana." denial As of 2 May 2009, the number of probable swine flu cases in the whole of Louisiana stood at 23. Barbara "N(ew)O(rleans) truth to the rumor" Mikkelson Last updated:  2 May 2009    East Jefferson General Hospital Newsroom.  "EJGH Updates the Community on Swine Flu."   30 April 2009. Claim:  The Obama administration is proposing a 1% tax on debit card usage and/or banking transactions.  Examples:  [Collected via e-mail, July 2010] The Transaction Tax!  WHAT THE HELL IS THIS??President Obama's finance team and Nancy Pelosi are recommending a 1% transaction tax on all financial transactions.The bill is HR-4646 introduced by US Rep Peter deFazio D-Oregon and US Senator Tom Harkin D-Iowa.Their plan is to sneak it in after the November election to keep it under the radar.See what Nancy has to say about this wonderful idea!https://tinyurl.com/24dn5udIt's only 1%! This is a 1% tax  on all transactions to or from any financial institution i.e. Banks, Credit  Unions, Mutual funds,  Brokers, etc.Any deposit you make will have a 1% tax charged.Any withdrawal you make, 1% tax.Any transfer within your account, a transfer to or from savings and checking, will have a 1% tax charged.Any ATM transaction, withdrawal or deposit, 1% tax.If your pay check or your Social Security is direct deposited, 1% tax.If you carry a check to your bank to deposit, 1% tax.If you take cash in to deposit, 1% tax.If you receive any income from a bond or a dividend from stock, 1% tax.Any Real Estate Transaction, 1% tax.This is from the man who promised that if you make under $250,000 per year, you will not see one penny of new tax! Remember, he is completely honest and trustworthy.Keep your eyes and ears open.   https://tinyurl.com/24dn5ud Folks, Nancy says this would be a minimal tax on the people, but 1 percent every time you pay a bill or make a deposit is not minimal. This would no doubt tax investment  transactions as well as bank account transactions.This woman is nuts!!!If you know someone in California get this to them!  While at the checkout of Wal-mart in Greeneville, TN I heard that in the future the government may be planning to place a 1% tax on people using debit cards at the check out.  I have heard discussion and seen on emails the fear that the Obama administration is going to pass a 'banking tax' that will take 1% of each deposit and 1% of every transaction out of a bank account. Summary:  The Obama administration has not proposed or recommended placing a 1% tax on all financial transactions.  The idea of the 1% transaction tax stemmed from a bill repeatedly introduced by a single congressman which had no support from any other member of Congress and no chance of passing. Origins:  Some members of Congress have what might be termed "hobby horse" issues: concepts about which they introduce legislation in Congress after Congress although their bills not only never come close to passing, but never even clear committee to be put to  votes in the first place.  The hobby horse of Representative Chaka Fattah of Pennsylvania is the notion of eliminating all federal taxes on individuals and corporations and replacing them with a revenue-generating system based on transaction fees (a concept he originally called the "Transform America Transaction Fee" and later referred to as the "Debt Free America Act"). Chaka Fattah Transform America Transaction Fee In 2004 Rep. Fattah presented a bill calling on Congress to fund a study regarding the replacement of the federal tax code with a transaction fee-basedsystem (H.R. 3759), he introduced a similar bill in 2005 (H.R. 1601), again in 2007 (H.R. 2130), and again in 2009 (H.R. 1703).  None of these bills was ever put to a vote, and only one of them had so much as a single co-sponsor. H.R. 3759 H.R. 1601 (H.R. 2130), (H.R. 1703) In 2010, Rep. Fattah moved beyond proposing studies and submitted the Debt Free America Act (H.R. 4646), a bill calling for the implementation of  a scheme to pay down the national debt and eliminate federal income tax on individuals by imposing a 1% fee on specified financial transactions: H.R. 4646 pay down One idea for raising taxes to pay down the debt is the bill introduced this February [2010] by Rep. Chaka Fattah (D-Pa.). His "Debt Free America Act" (H.R. 4646) would impose a 1 percent "transaction tax" on every financial transaction  whether paid by cash, credit card or any form of financial transfer, the only exception being transactions involving the purchase or sale of stock. Theoretically, everyone would pay one cent on the dollar for every such transaction in America every day  whether $3 million on a $300 million business acquisition, $300 on the purchase of a $30,000 car, or $5 on a $500 ATM withdrawal. Specifically, the text of the bill stated that: The purpose of [the transaction fee] is to establish a fee on most transactions. Such [a] fee:  is different than a sales tax in that a sales tax is charged only on sales to the final consumer, [while] the transaction fee would apply to intermediate users as well as end users   is different than a value added tax (VAT), commonly used in European and other countries, in that a VAT is imposed only on a portion of a transaction's value (roughly the difference between an item's selling price and its cost), [while] the transaction fee would apply to the entire amount of the transaction  is intended to raise sufficient revenue to eliminate the national debt, which was $10.6 trillion in January 2009, during a period of 7 years, and to phase out the income tax on individuals. [This bill would] impose on every specified transaction a fee in an amount equal to 1 percent of the amount of such transaction. The term 'specified transaction' means any transaction that uses a payment instrument, including any check, cash, credit card, transfer of stock, bonds, or other financial instrument. The term 'transaction' includes retail and wholesale sales, purchases of intermediate goods, and financial and intangible transactions. Persons become liable for the fee at the moment the person exercises control over a piece of property or service, regardless of the payment method. (The bill provided for individuals earning $125,000 or less to receive a credit equal to 1% of their income against the tax, and it gave the Treasury Department discretion to exempt certain transactions on which lower-income people disproportionately relied.) Like Rep. Fattah's other Congressional efforts along these lines, his Debt Free America Act had no sponsors other than himself,  languished in committee after being introduced, had no realistic chance of being passed. Thus, although e-mailed warnings about a "1% transaction tax" do reference a once-real piece of proposed legislation, the amount of attention those warnings garnered vastly, vastly outstripped any real possibility that such legislation would actually be enacted. Moreover, some of the additional details contained with such e-mailed warnings were erroneous:  Neither "President Obama's finance team" nor Nancy Pelosi is "recommending a 1% transaction tax."  The proposal for the  Debt Free America Act was purely the effort of a single congressman, with no outside support.  Neither Representative Peter DeFazio of Oregon nor Senator Tom Harkin of Iowa introduced the Debt Free America Act, co-sponsored it, or publicly supported it.  The included link that supposedly showed Nancy Pelosi endorsing the Debt Free America Act antedated the introduction of that bill to Congress; her comments actually referred to a different, earlier transaction tax proposed in December 2009 by Rep. Peter DeFazio.  That bill, known as the "Let Wall Street Pay for the Restoration of Main Street Act" (H.R. 4191), called for the funding of investment in middle class jobs by levying small percentage value taxes on the buying and selling of stocks, futures, swaps, options and other securities. (Although Rep. DeFazio's bill had 31 co-sponsors, it too languished in committee without being brought to a vote.) proposed H.R. 4191  Later versions of this item opened with the statement that "ON JANUARY 1ST 2012, THE GOVERNMENT IS REQUIRING EVERYONE TO HAVE DIRECT DEPOSIT FOR SS CHECKS. WONDER WHY?"  The Social Security program did switch over to an electronic payments system as of 1 March 2013 that provided recipients with the options of receiving their benefits payments either through direct deposit to a bank account or via the reloading of a debit card, but that change had nothing to do with the Congressional bill discussed above. Rep. Fattah reintroduced his Debt Free America Act (as H.R. 1125) to the 112th Congress on 16 March 2011. Like Rep. Fattah's previous efforts along these lines, Govtrack.us tagged it with the prognosis "This bill has a 0% chance of being enacted." H.R. 1125 Govtrack.us Last updated:  22 October 2013 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. As U.S. President Donald Trump accelerated unsubstantiated attacks on the legitimacy of mail-in voting during the summer of 2020, numerous Snopes readers asked us to investigate whether the leader of the U.S. Postal Service was carrying out a nefarious scheme to help Trump win another presidential term. mail-in voting In late July and early August, various rumors surfaced regarding Louis DeJoy, a North Carolina businessman whom the Postal Service's governing board selected to run the agency in May 2020. For example, a viral tweet thread alleged: viral tweet My mailman just confirmed they have all officially been told to "SLOW THE MAIL DOWN," per trump's Postmaster General. ...He says that there is backed up mail ALL OVER THE FLOOR. He's never seen anything like it. It has ALREADY begun. But as long as we keep each other informed, we can beat their dirty tricks with INFORMATION.   The claim's underlying notions were these: DeJoy was a political ally to the Republican president, and the new postmaster general had used his new authority to order Postal Service carriers and clerks to slow deliveries to help Trump win the 2020 November election. A backlog of ballots in the weeks or days before Election Day, critics of the president worried, could lead to votes going uncounted or deemed invalid due to state laws governing mail-in election deadlines. state laws What follows is an examination of federal documents obtained by Snopes  including letters by members of Congress, campaign finance reports, and internal memos to Postal Service employees  as well as interviews with postal union representatives and a Postal Service spokesperson, to determine the legitimacy of those questions. DeJoy could not be reached for an interview for this report.  Note: Snopes not only investigated DeJoy's relationship to Trump, but his financial stake in companies that compete with the Postal Service to evaluate if, or to what extent, his past investments provided any evidence of a plan to undermine the Postal Service's longstanding mission: to provide mail service to every American, no matter their address or income. Yes. DeJoy, who lives in Greensboro, donated more than $1.2 million to the Trump campaign between August 2016 and February 2020, according to campaign finance reports compiled by the Federal Elections Commission (FEC). Federal Elections Commission It's unclear when or how DeJoy developed a relationship with Trump, and why he decided to support the billionaire's political pursuits. In a 2005 interview with Greensboro's local newspaper, DeJoy  then-CEO of New Breed Logistics, a distribution and warehousing company  appeared less supportive of Trump, saying his self-important attitude on the reality-TV show "The Apprentice" was destructive. 2005 interview The Apprentice "I'd be fired," DeJoy said, if he was a contestant. Nonetheless, by early 2017, DeJoy was among his state's top donors to Trump (see below for The Charlotte Observer's list that ranks DeJoy at No. 3 with a total contribution of $111,000). And by October of that year, DeJoy had become close enough to the president to host him and other donors for fundraiser at his Greensboro house. top donors Greensboro house.     Also, by that time, DeJoy's wife, Aldona Wos, had been appointed by the president to serve as vice chair of a White House commission that oversees paid fellowships in federal offices, according to the couple's foundation website. foundation website In addition to his contributions to Trump's political campaigns specifically, DeJoy has given hundreds of thousands of dollars to Republican causes or campaigns over decades, the FEC records show. The Postal Service's governing board, a group appointed by the president with confirmation from the Senate, selected DeJoy as Postmaster General on May 6, 2020, after what it described as an extensive nationwide search for qualified candidates. At the time of that decision, Trump had appointed all six board members  Chairman Robert Duncan, John Barger, Ron Bloom, Roman Martinez IV, Donald Moak, and William Zollars  since the early days of his presidency. what it described Robert Duncan John Barger Ron Bloom Roman Martinez IV Donald Moak William Zollars  DeJoy, who was in charge of fundraising for the Republican National Convention (RNC) in Charlotte when the board made its announcement, made the following donations since the start of 2020, according to filings from the FEC: National Republican Congressional Committee. National Republican Congressional Committee Facebook In sum, considering DeJoy's record of donations, as well as evidence of him hosting a Trump fundraiser at his Greensboro home in fall 2017, it is accurate to claim that the new postmaster general is a political ally to the Republican president.  home The answer to this question is less clear. In summer 2020, the viral claim about DeJoy  that he had directed carriers to delay mail to benefit Trump's reelection campaign (which we unpack below)  took on another layer: that DeJoy had also allegedly invested $70 million of his own money in delivery companies that compete with the Postal Service. another layer allegedly     That allegation, which we deemed true (see the explanation below), was particularly worrisome for critics of Trump and DeJoy, who believed the alleged holdings were more proof of the two leaders conspiring together  this time in an attempt to privatize the Postal Service. critics Here's some context before we dive into DeJoy's personal assets: Conservative Republicans have long pushed to remove government from mail services that they believe should be left to the private commercial market. Since Trump took office, he has called the Postal Service "a joke" or Amazon's "delivery boy," considering its package rates, and has floated the idea of eventually privatizing the agency. a joke delivery boy eventually privatizing the agency Meanwhile, others fear dismantling the federally-mandated mail service would disproportionately affect people who live in rural areas, where private companies such as FedEx and UPS either charge higher rates or do no shipments at all. At the same time, the Postal Service  which does not receive tax dollars for its operating expenses  faces a worsening financial situation due to a 2006 congressional mandate that required the agency to prepay health care benefits of retirees, as well as a decline in first-class mail customers. The coronavirus pandemic exacerbated those long-standing problems, forcing several post offices nationwide to completely close or scale back hours. congressional mandate coronavirus pandemic scale back hours For instance, on April 9, 2020, roughly one month before DeJoy was selected to lead the Postal Service, then-Postmaster General Megan Brennan said the agency was preparing for a $13 billion revenue shortfall due directly to COVID-19 and an additional $54.3 billion in losses over 10 years. Considering those projections, she said the agency could run out of cash this fiscal year  or the end of September  without federal intervention. (Brennan announced her retirement in October 2019, after more than 30 years with the agency.) April 9, 2020 announced her retirement The former Postal Service leader made those comments shortly after federal leaders negotiated a $2.2 trillion COVID-19 economic relief package, called the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which, initially, included a $13 billion one-time boost for the mail service. But, purportedly at the urging of Treasury Secretary Steven Mnuchin and aides to Trump, congressional leaders removed that provision from the stimulus package, and instead included a $10 billion loan that the Trump administration could leverage in its favor. Then, on July 29, 2020, The Washington Post reported that under DeJoy's leadership, the postal agency gave Mnuchin's office's proprietary information about the Postal Service's most lucrative private-sector contracts, such as Amazon, FedEx and UPS, in exchange for the loan money. economic relief package Steven Mnuchin The Washington Post By that time, Congressional leaders and Trump were battling yet again over another emergency relief package; Democrats proposed a $25 billion boost for the Postal Service but then lowered that amount to $10 billion during talks with Republicans. On Aug. 13, 2020, during an interview on Fox Business Network, the president said frankly the tug-and-pull over Postal Service funding was part of his administration's plan to try to make it harder for the agency to handle the expected surge in mail-in ballots in the November election. If we dont make a deal, that means they dont get the money, Trump told host Maria Bartiromo, referring to the false claim that Democrats are are proposing a universal mail-in voting system. That means they cant have universal mail-in voting; they just cant have it. told Which brings us to DeJoy's assets, and the above-mentioned claim that he had "$70 million invested in companies that compete with USPS." For the basis of this analysis, we considered private companies that provide shipping or distribution services, such as DHL, the FedEx Corporation, and United Parcel Service, Inc. (UPS), business competitors with the post office. For more than 30 years, DeJoy was the CEO of New Breed Logistics, a supply chain business that contracted with a variety of public and private companies, including the Postal Service. In 2014, XPO Logistics acquired DeJoy's company, and he served on the company's executive team or board of directors until May 2018. According to internal documents, which we obtained using the U.S. Securities and Exchange Commission's (SEC) database of company filings, XPO Logistics considered its competitors to include DHL, FedEx, UPS, and J.B. Hunt Transport Services.  XPO Logistics DHL FedEx UPS J.B. Hunt Transport Services Aside from that evidence, which proved DeJoy's former company competed for business with organizations that also competed with the Postal Service, Snopes uncovered a letter from his wife, Wos, to a White House legal advisor on January 3, 2020, that listed her family's financial assets, known as "Attachment A." According to that list, the family had stock in companies including UPS, J.B. Hunt Transport Services, Inc., and XPO Logistics, Inc. letter She wrote the letter in response to a nomination by the Trump administration to serve as U.S. ambassador to Canada, and she said she would divest from all holdings in the document within 90 days of her confirmation. However, as of this writing, Wos had not been sworn into the position. The letter, which was available via the Office of Government Ethics, read: nomination Office of Government Ethics   As of June 15, 2020, the day DeJoy assumed his role as postmaster general, The Washington Post reported the couple had between $30.1 million and $75.3 million in assets in Postal Service competitors or contractors. XPO Logistics represented the vast majority of those investments, and the couple's combined stake in UPS and trucking company J.B. Hunt, for examples, was roughly $265,000. The Washington Post reported On DeJoy's first day, the Senate's top Democrat, Charles Schumer of New York, said in letter to the Postal Service's board of governors' chairman: "[DeJoy's] financial interests in companies that have business ties with the Postal Services, as well as his extensive campaign fundraising efforts, raise questions" over his ethical conflicts of interest and partisan interests. letter By that point, a spokeswoman for DeJoy told journalists he had resigned as finance chair for the Republican National Convention, and would "comply with any financial divestitures that are required" for the new leadership position. told journalists In sum, reports proved the DeJoy family at one point had millions of dollars in assets in companies that compete or contract with the Postal Service, which lend credibility to the viral assertion. But the exact amount of such investments was unclear, and as of this writing, it was unknown if or to what extent the couple had divested any of the financial holdings. Not exactly  but there is some truth to the claim. Upon our analysis, the rumor seems to have stemmed from a series of directives DeJoy gave Postal Service employees since he took over the agency. On his first day, for example, he addressed the agency in a video that alluded to impending changes under his leadership that aimed to create a "viable operating model," though he did not go into specifics. video Then, in mid-July, he issued several memos to employees, including a "New [Postmaster General's] expectations and plan." Those messages to all managers, clerks, and carriers nationwide appeared to be the source of the claim, and detailed changes to how and when the Postal Agency would deliver mail. A July 10, 2020, internal document to managers, which Snopes received from the American Postal Workers Union and refers to an "operational pivot" for the agency, said the following, for example: American Postal Workers Union The initial step in our pivot is targeted on transportation and the soaring costs we incur due to late trips and extra trips, which costs the organization somewhere around $200 million in added expenses. $200 million in added expenses The shifts are simple, but they will be challenging, as we seek to change our culture and move away from past practices previously used. But perhaps most relevant to the claim, the DeJoy-sponsored directives included instructions for employees to leave letters or packages at distribution centers if they delayed carriers from their routes  contradicting previous rules for deliveries  and said the Postal Service would no longer pay employees overtime to complete all mail deliveries. The July 10, 2020 memo said:  contradicting One aspect of these changes that may be difficult for employees is that  temporarily  we may see mail left behind or mail on the workroom floor or docks [in Processing and Distribution Centers], which is not typical. We will address root causes of these delays and adjust the very next day. Any mail left behind must be properly reported, and employees should ensure this action is taken with integrity and accuracy. As we adjust to the ongoing pivot, which will have a number of phases, we know that operations will begin to run more efficiently and that delayed mail volumes will soon shrink significantly. We also considered a separate message to employees in July 2020 that said, under a new initiative, carriers in certain regions would not sort any mail during the morning and instead clock in, retrieve sorted mail from the previous day and limit time in the office as much as possible. Then, when they returned from the streets, they would sort all available mail for the next day. July 2020 The agency said the extra spending on employees' overtime or delivery trips had not improved "our performance scores," without going into detail on what that meant, and framed the changes as necessary steps to improve its financial position. A July 27, 2020, public statement from DeJoy said: said public statement Given our current situation, it is critical that the Postal Service take a fresh look at our operations and make necessary adjustments. We are highly focused on our public service mission to provide prompt, reliable, and efficient service to every person and business in this country, and to remain a part of the nations critical infrastructure. David Partenheimer, manager of media relations for the Postal Service, told Snopes that the postmaster general was not doing any media interviews regarding the initiatives, nor about the underlying claims of this report. In a roughly 760-word email to us, however, Partenheimer reemphasized what the agency viewed as the need for the adjustments, and said: "We acknowledge that temporary service impacts can occur as we redouble our efforts to conform to the current operating plans, but any such impacts will be monitored and temporary ... and corrected as appropriate." Soon after the directives, American Postal Workers Union President Mark Dimondstein told us in a phone interview that employees and customers across the country were noticing mail delays. In the Philadelphia region, for instance, the Philadelphia Inquirer reported situations where residents were going upwards of three weeks without receiving packages and letters, and postal union leaders and carriers said mail was piling up at offices, unscanned and unsorted. Mark Dimondstein employees Philadelphia Inquirer "When you ... say this is what you have to do as workers, then that's what we have to do  [the change] runs counter to everything that the Postal Service is about, which is we treat the mail as our own; we get it to the customer as quickly as we can," Dimondstein said. "They've never seen mail backed up like this  it's not being moved." That meant, while DeJoy had not told carriers to "slow the mail down" verbatim, he initiated changes to how and when carriers go about doing their job that the Postal Agency said would cause temporary mail delays. However, it would be inaccurate to assume all slow deliveries under DeJoy's leadership were a result of the July 2020 directives specifically, when they could also be linked to reduced hours for some post offices or other circumstances. Roughly three months before the 2020 presidential election, voting rights groups and outspoken critics to the president believed the new directives by DeJoy occurred at a convenient time for Trump: when a record number of Americans were preparing to vote by mail and avoid potential exposure to the COVID-19 coronavirus by casting ballots at in-person polling places. Specifically, they worried the new requirements for post office carriers and clerks would lead to backlogs of mail-in ballots and thus create challenges for elections officials who, in the majority of states, must invalidate ballots that reach them after Election Day  even if they were postmarked before that date. Rep. Carolyn Maloney, a Democrat from New York, for example, led colleagues in writing a letter to DeJoy on July 20, 2020, that said: Rep. Carolyn Maloney "While these changes [to mail service] in a normal year would be drastic, in a presidential election year when many states are relying heavily on absentee mail-in ballots, increases in mail delivery timing would impair the ability of ballots to be received and counted in a timely manner  an unacceptable outcome for a free and fair election." We asked Dimondstein, APWU president, whether he believed the July directives by Postal Service leadership were somehow linked to a plan to cause mail service chaos before the November election and help Trump win reelection. He said: What we do know for truth is this administration is, in written record, proposing and planning to sell the post office to private corporations, i.e. privatizing. ...That was June 2018. We also know as a fact that ...that [there are] calls for reduced service, increased prices, and less workers' rights and benefits. So if you take those two things together, certainly if they're implemented, then they're going to cause delays in mail; they're going to cause service being undermined. ... written record This is a fact: [DeJoy is] what's considered a mega-donor of the Trump administration and the Republican party. ... Anything that undermines the Postal Service' [service to customers] ... has us concerned that it could be linked back to those who have an agenda to eliminate [the Postal Service]. But I can't sit here and tell you that that's a fact. Partenheimer said any notion that DeJoy made decisions for the Postal Service under directions from Trump (which include claims that he issued the July 2020 changes that resulted in delays to help Trump's re-election campaign) were "wholly misplaced and off-base." He said the Postal Service, typically an apolitical agency, remains committed to "fulfilling our role in the electoral process" in places where politicians allow voters to cast ballots by mail and "to delivering Election Mail in a timely manner consistent with our operational standards." He elaborated: "[Despite] any assertions to the contrary, we are not slowing down Election Mail or any other mail. Instead, we continue to employ a robust and proven process to ensure proper handling of all Election Mail consistent with our standards." Days later, he said in a statement to news media that certain deadlines concerning mail-in ballots, may be incompatible with the Postal Services delivery standards, especially if election officials dont pay more for first-class postage. To the extent that states choose to use the mail as part of their elections, they should do so in a manner that realistically reflects how the mail works, he said. news media Then, on Aug. 18, 2020, DeJoy issued a statement in which he said he would temporarily suspend initiatives "that have been raised as areas of concern as the nation prepares to hold an election in the midst of a devastating pandemic," including the controversial July 2020 directives that eliminated overtime and some delivery trips. The statement read: statement To avoid even the appearance of any impact on election mail, I am suspending these initiatives until after the election is concluded. I want to assure all Americans of the following: In addition, effective Oct. 1, we will engage standby resources in all areas of our operations, including transportation, to satisfy any unforeseen demand. In sum, it was accurate to state that DeJoy, a political ally to Trump, ordered Postal Service workers to leave late-arriving mail at distribution centers for delivery the following day and eliminate extra trips in July 2020  a change the Postal Service was expecting to cause temporary mail delays  although no verifiable evidence proved those directives were part of a deliberate scheme to disenfranchise voters in the November 2020 election. Additionally, there was no proof to show the changes aimed to help Trump win reelection. For those reasons, we rate this claim "Unproven." Ye Hee Lee, Michelle and Bogage, Jacob. "Postal Service Backlog Sparks Worries That Ballot Delivery Could Be Delayed In November".
 The Washington Post. 30 July 2020. Naylor, Brian. "Pending Postal Service Changes Could Delay Mail And Deliveries, Advocates War".
 NPR. 29 July 2020. Naylor, Brian. "Pending Postal Service Changes Could Delay Mail And Deliveries, Advocates War".
 NPR. 29 July 2020. USPS Contributor. "What Is The History Behind The Unofficial USPS Motto?"
 Postal Posts. 11 September 2015. USPS. "Postmaster General Statement On Operational Excellence And Financial Stability".
 27 July 2020. Office of Inspector General. "U.S. Postal Service's Processing Network Optimization And Service Impacts".
 USPS. 16 June 2020. Dawsey, Josh, et. al. "Top Republican Fundraiser And Trump Ally Named Postmaster General, Giving President New Influence Over Postal Service".
 The Washington Post. 6 May 2020. Bogage, Jacob. "Postal Service Memos Detail 'Difficult' Changes, Including Slower Mail Delivery".
 The Washington Post. 14 July 2020. Naylor, Brian. "New Postmaster General Is Top GOP Fundraiser".
 NPR. 7 May 2020. Hummel, Marta. "New Breed CEO No One's 'Apprentice' Louis DeJoy Is A Big Supporter Of George W. Bush But Says The Clinton Era Was His Most Profitable".
 News & Record. 7 January 2005. Heckman, Jory. "USPS Board Names Logistics Executive As New Postmaster General".
 Federal News Network. 6 May 2020. Gordon, Aaron. "USPS Plans To Slash Hours At Many Post Offices, Hoping To Save A Buck".
 Vice. 29 July 2020. Cohen, Rachel. "USPS Workers Concerned New Policies Will Pave The Way To Privatization".
 The Intercept. 29 July 2020. Derysh, Igor. "With Trump Donor In Charge, Postal Service May Shut Locations And Cut Service Before Election Day".
 Salon. 31 July 2020. Rushing, Ellie. "Mail Delays Are Frustrating Philly Residents, And A Short-Staffed Postal Service Is Struggling To Keep Up".
 The Philadelphia Inquirer. 2 August 2020. Rep. Carolyn B. Maloney. "Maloney, King Lead Bipartisan NY Delegation Call For Immediate Help For The Postal Service".
 28 April 2020. House Committee On Oversight And Reform. "Senior Democrats Request Information On Postal Service's Operational Changes".
 20 July 2020. Bogage, Jacob. "Trump Ally Takes Over Crisis-Ridden Postal Service As Top Senate Democrat Demands Inquiry On Hiring".
 The Washington Post. 15 June 2020. Murphy, Brian. "NC Businessman, A Big-Time GOP Donor, Is Tapped To Lead US Postal Service".
 The News & Observer. 7 May 2020. Shear, Michael. "Mail Delays Fuel Concern Trump Is Undercutting Postal Service Ahead Of Voting".
 The New York Times. 1 August 2020. Sargent, Greg. "Trump Just Told Us How Mail Delays Could Help Him Corrupt The Election".
 The Washington Post. 31 July 2020. Reichmann, Deb, and Izaguirre, Anthony. "Trump Admits He's Blocking Postal Cash To Stop Mail-In Votes."
 Associated Press. 14 August 2020. USPS. "Postmaster General Louis DeJoy Statement."
 18 August 2020. This report was updated to include an interview by Trump with Fox Business Network on Aug. 13, 2020, where he acknowledged that he was intentionally blocking Postal Service funding in an attempt to make it harder for the agency to process mail-in ballots in the November presidential election. This report was updated to include a statement by DeJoy on Aug. 18, 2020, in which he announced the suspension of certain initiatives "to avoid even the appearance of any impact on election mail." Claim:  McDonald's will stop serving overweight customers beginning 1 January 2015.  Example:  [Collected via e-mail, December 2014] Is this article true? "McDonald's Will Stop Serving Overweight Customers Beginning 1/1/15"   Origins:  On 4 December 2014, Daily Buzz Live published an article claiming the McDonald's fast food chain would stop selling food to overweight customers as of 1 January 2015: article Obesity in America has more than doubled over the last 2 decades and has become the leading public health issue in the U.S. With more than two-thirds of the adult population overweight, McDonald's has decided to become part of the solution  not the problem. According to reports, beginning January 1, 2015, McDonald's will no longer serve customers with a weight capacity over 170 lbs for women and 245 lbs for men. Children's weight restrictions will vary depending on age and height. McDonald's is currently running campaigns to shake its "junk food" image, insisting they sell nothing but good quality food. They are are branding themselves from "A dining experience of fast food" to "Good food served fast." McDonald's has taken a few steps to make its menu healthier, but the restaurant chain has not announced any plans to stop serving customers based on their weight. In addition to the logistical menu  impossibilities of weighing drive-thru customers, the potential lawsuits for discriminating against obese people, and the likelihood of McDonald's losing millions of dollars in profits, the article can be debunked simply by considering its source:  According to the Daily Buzz Live disclaimer page, all articles published on the site are meant for "entertainment purposes only." Some articles are inspired by "real news events," but the content of these articles is "complete fiction." disclaimer Last updated:  5 December 2014 On 24 May 2016, a Facebook user published the above-reproduced image of a partially blinded beagle, along with the claim that it represented the harmful effects of cosmetics testing on animals: published claim When cosmetics companies like L'Oreal want to test their products, they often use beagles. They take the potentially toxic ingredients in their products and stick them in the puppy's eye in large doses to test how much of a product is needed to cause harm. When they finish, they remove the Beagle's eye and start again on the other eye. When the beagle runs out of eyes, they kill him. This is why we never support animal testing companies. The photograph caused alarm and concern among animal lovers worried about whether the beagle's injuries were truly inflicted by L'Oreal (or any other cosmetics brand). A reverse image search revealed that the photograph had appeared years earlier on Portuguese-language web sites, with many English-language sites later using the same image to blame Mary Kay, Avon, or Procter & Gamble for the beagle's injuries: earlier blame    This doleful image was earlier published on a Brazilian web site, where it was identified as having been taken in the city of So Roque in relation to a controversy involving animal testing at the Instituto Royal laboratory, and it was also posted to Instagram in connection with rumors linked to that laboratory and location: published Instagram  An article published in the Brazilian version of the Epoch Times reported that the lab in question had been closed after protests by animal rights supporters and stated that the institute tested "cosmetics and cleaning products" of unspecified origin: article The Royal Institute announced it is ending the activities of the laboratory in So Roque, in the state of So Paulo. The decision comes after the release of 178 beagle dogs, used in laboratory tests for cosmetics and cleaning products, by protesters. The case was widely reported and generated discussions on ethics related to the use of animals in testing. The institute has been investigated by prosecutors since 2012 for their mistreatment of animals.  A 2013 news article also reported on the beagle controversy but made no specific mention of cosmetics testing at the lab in question: article A group of animal rights activists have been camped in front of the Royal Institute in So Roque (SP) since they stormed the headquarters of the laboratory, which conducts research for the pharmaceutical and veterinary industries, among others. The protesters, including members of the Black Bloc SP, accused the company of the ill-treatment of beagle dogs used in research. Protests against the Royal Institute began just last year. Activists claim that the company practices irregularities and criminal acts against animals ... The Royal Institute defends their research on their web site and says they respect all national and international standards in dealing with dogs in the laboratory. The company is an Oscip (Civil Society Organization of Public Interest) and receives public money thanks to the support of funding agencies for scientific research. Animal advocates say the company does not have licenses and permits for the activities it performs. Contemporaneous articles mentioned "cosmetic and pharmaceutical testing," and a blog post claimed the contraceptive Norplant was among the products tested on the since-liberated beagles. Scientists who worked for the lab lamented the loss of a decade of research in the clashes with animal rights activists: articles pharmaceutical research For the scientific director of the Royal Institute, Joo Antnio Pegas Henry, the damage is incalculable. John Anthony said that the biggest problem was not the liberation of animals, but rather the destruction of the building, material, and especially of their research. "[The activists] destroyed the laboratory, including computers holding research data. We can fix the material damage, but the damage to science is incalculable. There was material that was in its final stages after a ten-year study. Everything was lost," says John Anthony. According to the coordinator of the National Council of Animal Experimentation Control (Concea), Marcelo Marcos Morales, the institute in So Roque is the most important laboratory of the country in relation to such experimentation. While the precise origin of the beagle photograph purportedly linked to L'Oreal research is unknown, the image was originally circulated as one linked to a 2012 controversy involving the since-closed Instituto Royal of So Roque. Testing carried out at the lab while it was operational was not restricted to cosmetics, and most reports named pharmaceutical and household products as the primary substances researched at the Institute. The photograph has long since been repurposed to claim a number of popular cosmetics brands such as MAC, Avon, Mary Kay, and Head & Shoulders were responsible for the beagle's injuries. On L'Oreal's web site, the brand discloses their policy on animal testing, a position a representative for L'Oreal reiterated to us on 27 May 2016: discloses LOral no longer tests on animals any of its products or any of its ingredients, anywhere in the world. Nor does LOral delegate this task to others. The rare exception allowed is if regulatory authorities demand it for safety or regulatory purposes. This image was not the first spurious animal testing rumor attached L'Oreal on social media. Previously, a photograph of a sick rabbit unrelated to animal testing was circulated alongside claims that the animal was also a victim of cruel experiments carried out by L'Oreal. L'Oreal  Lungarzo, Carlos Alberto.  "O Que  O Instituto Royal?"
  RevistaForum.  31 October 2013. Menezes, Bruno.  "Instituto Royal Fecha Laboratrio Em So Roque."
 The Epoch Times.  7 November 2013. Globo.  "Aps Denncia De Maus-Tratos, Grupo Invade Laboratrio E leva Ces Beagle."
  18 October 2013. Globo.  "Alm De 178 Beagles, Sete Coelhos Tambm Foram Levados de Empresa."
  18 October 2013. Globo.  "Invaso Ao Prdio Do Instituto Royal Em So Roque Completa Um Ano."
  18 October 2014. Veja.  "Laboratrio No Interior De So Paulo  Invadido Por Ativistas."
  18 October 2013. Democratic congressman Beto O'Rourke of Texas came to national prominence in 2018 through his high-profile campaign to unseat incumbent Republican U.S. senator Ted Cruz. During the course of his campaign, the Democratic candidate has been confronted with various claims and allegations about himself and his family. One such meme, entitled "'Beto' Reality Check," was shared widely on Facebook in August 2018:A spokesperson for O'Rourke's campaign described the meme as "factually incorrect in countless ways" and largely referred us to several existing news reports about the allegations. The following is our breakdown of the five sections contained in the meme.O'Rourke adopted the name "Beto" to appeal to Latino voters: The meme claimed:NOT HISPANIC"Robert O'Rourke" became "Beto" for his political campaigns and on the ballot, a tactic that gives the false impression he's Latino, misleading voters in a state with many Hispanics.In fact, O'Rourke was known as "Beto" long before he entered political life, although his birth name is Robert and he appears to use both first names interchangeably. (For example, his July 2018 Federal Election Commission "Statement of Candidacy" lists his name as "Robert Beto O'Rourke.")O'Rourke told CNN that his parents referred to him as Beto "from day one," and that it "just stuck." Others have noted that the name is likely derived from a pronunciation of the Spanish "Roberto," and O'Rourke himself described it as "a nickname for Robert in El Paso." (According to the U.S. Census Bureau, around 78 percent of El Paso county residents listed themselves as being of Mexican heritage in 2016.)O'Rourke's family is of Irish heritage. According to the New York Times, his family "came over from Ireland four generations ago to work on the railroad." His father Pat O'Rourke was a prominent El Paso County official during the 1980s.A 1986 article about Pat O'Rourke in the El Paso Times referred to his then 14-year-old son as "Beto O'Rourke." In 1999, six years before O'Rourke ran for El Paso city council, the same newspaper referred to "web site designer Beto O'Rourke" in a short article about his I.T. business Stanton Street Design.After checking the archives of the El Paso Times, we found multiple references to "Beto O'Rourke" between 1986 and 2004, when O'Rourk was either a child or a businessman and had never run for political office.In March, the campaign of O'Rourke's Republican opponent, Ted Cruz, launched a radio jingle that poked fun at the name "Beto" and included the following lyrics: "I remember reading stories/Liberal Robert wanted to fit in/So he changed his name to 'Beto'/And hid it with a grin ...":FIRST LISTEN: our new 60-second statewide radio ad introducing our liberal opponent, Congressman Robert ORourke, to Texas voters.Help #KeepTexasRed: https://t.co/PVsiCtbbyL #CruzCrew #TXSen pic.twitter.com/OxK61gZ0ek Ted Cruz (@tedcruz) March 7, 2018The next day, O'Rourke posted a photograph of himself as a young boy, wearing a sweater with the nickname "Beto" stitched into it, establishing that, contrary to false accusation, he did not "change his name" for political reasons:pic.twitter.com/1IO1dgmCkv Beto O'Rourke (@BetoORourke) March 7, 2018O'Rourke used his father's connections to avoid trial for two felonies: UNPROVENThe meme claimed:FELONY ARREST RECORDAs an adult in his mid-20s, O'Rourke was caught breaking into the University of Texas El Paso. Charged with breaking and entering and burglary, he mysteriously avoided trial. A few years later, arrested for drunk driving, he again walked with a "deal." Being the song of a powerful, politically connected County Judge apparently has benefits. O'Rourke dismisses his felony convictions as "youthful pranks" and "mistakes"; it's old news, move along, nothing to see here.O'Rourke has indeed been arrested for burglary and drunk driving, a history which he has discussed several times over the course of his political career, as his spokesperson told us: "While charges were dismissed, this is something that Beto has always publicly addressed -- during his initial run for the city council, his run for Congress, in profiles written about him, during dozens of interviews, and at town halls across the state during this campaign."In a 27 August 2018 op-ed for the Houston Chronicle and  San Antonio Express-News, O'Rourke himself wrote:Twenty-three years ago I was arrested for attempted forcible entry after jumping a fence at the University of Texas at El Paso. I spent a night in the El Paso County Jail, was able to make bail the next day, and was released. Three years later, I was arrested for drunk driving -- a far more serious mistake for which there is no excuse.According to El Paso county jail records, O'Rourke was arrested for attempted burglary on 19 May 1995, when he was 22 years old. He was released from custody the same day. Court records show that the prosecutor dropped the charge in February 1996.O'Rourke was also arrested for driving while intoxicated on 27 September 1998, the day after his 26th birthday. He completed a "misdemeanor diversion program" (namely "DWI school") in October 1999, and the charge was dropped.In August 2018, the Houston Chronicle and San Antonio Express-News cited police reports, including a witness account, which suggested that the incident leading to O'Rourke's DWI arrest was relatively serious and involved a collision with another vehicle and a possible attempt by O'Rourke to leave the scene:State and local police reports obtained by the Chronicle and Express-News show that ORourke was driving drunk at what a witness called a high rate of speed in a 75 mph zone on Interstate 10 about a mile from the New Mexico border. He lost control and hit a truck, sending his car careening across the center median into oncoming lanes. The witness, who stopped at the scene, later told police that ORourke had tried to drive away from the scene. O'Rourke recorded a 0.136 and 0.134 on police breathalyzers, above a blood-alcohol level of 0.10, the state legal limit at the time.In the case of his DWI arrest, O'Rourke did not face prison time because he completed an alternative adjudication program. It's not clear why the attempted burglary charge was dropped in 1996 (we asked the O'Rourke campaign about this but didn't receive a response to that particular question in time for publication). However, we could find no evidence that O'Rourke's father had any role in either case, nor did the meme offer any evidence.Congressman O'Rourke's father Pat was the El Paso County judge until 1986 -- a kind of chief executive of the county's governing body, the Commissioners Court -- so he had not held office for nine years by the time of his son's attempted burglary arrest.O'Rourke violated 'insider trading' laws: The meme claimed:INSIDER TRADING VIOLATIONSAfter being sent a memo specifically prohibiting investment in Twitter's IPO [initial public offering], O'Rourke made a tidy one-day profit on it. When uncovered by a government watchdog, he quickly turned himself in. This violation of the STOCK Act (Stop Trading on Congressional Knowledge) is apparently a habit, as there are several other instances of this behavior; he characterizes them as mistakes.Despite the meme's claim, O'Rourke has never been charged with, or convicted of, violating any laws related to insider trading, including the STOCK Act, which bars members of the U.S. Congress from benefiting from financial transactions made on the basis of information they received in their capacity as members of Congress.But this section of the meme does contain elements of truth in that -- after the matter was brought to light by a third party -- O'Rourke reported his potential violation of rules to the House Ethics Committee (for stock transactions he maintained were executed by his broker without his knowledge), and the matter was resolved without any charges being brought against him:U.S. Rep. Beto ORourke alerted the House Ethics Committee that he might have violated a new law restricting members of Congress from engaging in certain stock transactions.It is the first case to come before the committee involving a 2012 law that prohibits members of Congress from participating in initial public offerings, or IPOs, other than what is available to members of the public generally, said Melanie Sloan, executive director of the Committee for Ethics and Responsibility in Washington, a watchdog group.ORourke, a Democrat whose district covers a portion of western Texas, reported the possible violation after Legistorm, an online news site that tracks congressional issues, informed him that his Nov. 15 disclosure saying he participated in the Twitter IPO earlier in the month might indicate a violation of a 2012 law called the Stop Trading on Congressional Knowledge Act, or STOCK Act.The freshman congressman also reported that, through his stockbroker, he participated in six other initial public offerings this year. In an interview, ORourke said he didnt see a Nov. 5 memo from the House Ethics Committee warning members of Congress about participating in IPOs.On 27 November 2013, O'Rourke wrote on Facebook that the ethics committee had informed him they would consider the issue resolved once he sold off any remaining shares that he bought during any IPOs, and sent the U.S. Treasury a check equal to the amount he earned in profits from those IPO-related shares:Upon receiving the letter from the Committee today I instructed my broker to sell all remaining shares, which he did. I then sent a check for the full amount of the profit from all IPO trades this year to the U.S. Treasury by overnight mail. Copies of the trades and the check have been sent to the Ethics Committee.I apologize to the House of Representatives and to the people I represent for not exercising due diligence. I will be much more thorough in the future concerning financial transactions and do my best to ensure that I am in full compliance with all rules covering members of Congress.Records filed with the Clerk of the House of Representatives show that O'Rourke bought between $1,000 and $15,000 worth of shares in Twitter on 7 November 2013 (the first day the company was traded on the stock market), before selling off between $1,000 and $15,000 in shares later that day.Records also indicate that on 27 November 2013, O'Rourke again sold off between $1,000 and $15,000 worth of Twitter shares "pursuant to the recommendations made by House Ethics Committee in a letter from 11/27/13."A condom full of "white powder" was found in O'Rourke's father's car: trueThe meme claimed:FATHER'S DRUG SCANDALO'Rourke's father, while county judge, had a 2-way radio installed in his Jeep. Installers discovered a condom packed with a "white powder" concealed in his vehicle and called police. Much to the dismay of investigating officers, the Captain on duty, a friend and political ally of O'Rourke, flushed the evidence down the toilet and dropped the charges. The Captain was subsequently suspended and tried for tampering with evidence.This section of the meme relates to incidents which took place in 1983, when Beto O'Rourke was 10 years old, and which had absolutely nothing to do with him.Nevertheless, it's true that in February 1983, El Paso County Sheriff's Captain Willie Hill told two police officers to get rid of a condom full of white powder which they had found in Pat O'Rourke's car while they were installing a radio in it. The officers suspected the powder to be heroin or cocaine, but the substance was never tested to determine its true nature.Hill was temporarily suspended but was reinstated after being acquitted on a misdemeanor charge of evidence tampering. (The prosecutor had earlier dropped a charge of misconduct against him.) Hill testified that he made a snap decision about the discovery of the powder, which he strongly suspected had been planted there to embarrass or undermine either O'Rourke or one of the officers installing the radio.O'Rourke and Hill were friends, as O'Rourke (then county judge) told the El Paso Times: "Because he's a good man, it would be an injustice if Willie were to suffer grievous consequences from this whole episode. You have an honest and honorable man implicated by pure fluke. And that's just damn right not fair."O'Rourke was involved in a family business that was prosecuted for tax violations: The meme claimed:FAMILY BUSINESS FEDERALLY PROSECUTEDO'Rourke's family business "Charlotte's Furniture," a store "Beto," his mother and sister are involved with, was charged in 2010 with altering records to avoid IRS reporting. Investigators found they accepted cash payments, in one instance over $630,000 from an unnamed individual (that's a LOT of furniture)! Found guilty on 15 counts, the sentence was a $250,000 fine and 5 years' probation. Around the time O'Rourke announced as a senate candidate, the business was shuttered and its records became unavailable. O'Rourke passes the prosecution off as a "mistake"; it's been covered, move along, nothing to see here.The meme got the basic facts right about the federal tax case against Charlotte's, but it falsely claimed that Congressman O'Rourke was personally "involved" in the company. He was not.In 2010, Charlotte's Inc., an El Paso furniture store company started by O'Rourke's grandmother in 1951, was convicted of "structuring transactions to evade reporting requirements, a tax-related felony. The company was charged as a corporate entity, but the Congressman's mother, Melissa O'Rourke, acted as its authorized representative.The company pled guilty to accusations that it had restructured transactions in order to present relatively large cash payments as having been made in installments of less than $10,000. Anti-money laundering provisions of U.S. law require that a business reveal the identity of any individual who makes a cash payment above that threshold.In total, Charlotte's and its employees illegally restructured $630,000 in payments, all from one customer, in this way between May 2005 and October 2006. The identity of that customer is not known. U.S. District Court judge Kathleen Cardone gave a sentence of five years' probation and a $500,000 fine, with $250,000 of that suspended.In 2017, Melissa O'Rourke announced that she intended to close down the business but denied the decision was connected to her son's U.S. Senate campaign or the 2010 conviction.According to Texas Comptroller of Public Accounts records for 2017, Congressman O'Rourke had no formal role with Charlotte's Inc., whose directors were Melissa O'Rourke and the Congressman's sister Charlotte O'Rourke.Records for 2005 and 2006 (when the I.R.S. reporting violations took place) as well as 2010 (when the conviction happened) show that Congressman O'Rourke had no formal role with the company at those times, either.The Congressman is part owner of the property where Charlotte's was located. According to O'Rourke's 2013 congressional financial disclosure, his mother gifted him an ownership stake worth between $1 million and $5 million in Peppertree Square, a shopping center on North Mesa St. in El Paso.However, his part ownership of the Peppertree Square property (which does not appear to entail any management function in any of the businesses located there) did not accrue until 31 December 2012, more than six years after the conclusion of the I.R.S. reporting violations at Charlotte's.  One such meme, entitled "'Beto' Reality Check," was shared widely on Facebook in August 2018: meme   A spokesperson for O'Rourke's campaign described the meme as "factually incorrect in countless ways" and largely referred us to several existing news reports about the allegations. The following is our breakdown of the five sections contained in the meme. The meme claimed: NOT HISPANIC "Robert O'Rourke" became "Beto" for his political campaigns and on the ballot, a tactic that gives the false impression he's Latino, misleading voters in a state with many Hispanics. In fact, O'Rourke was known as "Beto" long before he entered political life, although his birth name is Robert and he appears to use both first names interchangeably. (For example, his July 2018 Federal Election Commission "Statement of Candidacy" lists his name as "Robert Beto O'Rourke.") Statement O'Rourke told CNN that his parents referred to him as Beto "from day one," and that it "just stuck." Others have noted that the name is likely derived from a pronunciation of the Spanish "Roberto," and O'Rourke himself described it as "a nickname for Robert in El Paso." (According to the U.S. Census Bureau, around 78 percent of El Paso county residents listed themselves as being of Mexican heritage in 2016.) CNN noted listed O'Rourke's family is of Irish heritage. According to the New York Times, his family "came over from Ireland four generations ago to work on the railroad." His father Pat O'Rourke was a prominent El Paso County official during the 1980s. New York Times A 1986 article about Pat O'Rourke in the El Paso Times referred to his then 14-year-old son as "Beto O'Rourke." In 1999, six years before O'Rourke ran for El Paso city council, the same newspaper referred to "web site designer Beto O'Rourke" in a short article about his I.T. business Stanton Street Design. article article After checking the archives of the El Paso Times, we found multiple references to "Beto O'Rourke" between 1986 and 2004, when O'Rourk was either a child or a businessman and had never run for political office. In March, the campaign of O'Rourke's Republican opponent, Ted Cruz, launched a radio jingle that poked fun at the name "Beto" and included the following lyrics: "I remember reading stories/Liberal Robert wanted to fit in/So he changed his name to 'Beto'/And hid it with a grin ...": FIRST LISTEN: our new 60-second statewide radio ad introducing our liberal opponent, Congressman Robert ORourke, to Texas voters. Help #KeepTexasRed: https://t.co/PVsiCtbbyL #CruzCrew #TXSen pic.twitter.com/OxK61gZ0ek #KeepTexasRed https://t.co/PVsiCtbbyL #CruzCrew #TXSen pic.twitter.com/OxK61gZ0ek  Ted Cruz (@tedcruz) March 7, 2018 March 7, 2018  The next day, O'Rourke posted a photograph of himself as a young boy, wearing a sweater with the nickname "Beto" stitched into it, establishing that, contrary to false accusation, he did not "change his name" for political reasons: pic.twitter.com/1IO1dgmCkv pic.twitter.com/1IO1dgmCkv  Beto O'Rourke (@BetoORourke) March 7, 2018 March 7, 2018  The meme claimed: FELONY ARREST RECORD As an adult in his mid-20s, O'Rourke was caught breaking into the University of Texas El Paso. Charged with breaking and entering and burglary, he mysteriously avoided trial. A few years later, arrested for drunk driving, he again walked with a "deal." Being the song of a powerful, politically connected County Judge apparently has benefits. O'Rourke dismisses his felony convictions as "youthful pranks" and "mistakes"; it's old news, move along, nothing to see here. O'Rourke has indeed been arrested for burglary and drunk driving, a history which he has discussed several times over the course of his political career, as his spokesperson told us: "While charges were dismissed, this is something that Beto has always publicly addressed -- during his initial run for the city council, his run for Congress, in profiles written about him, during dozens of interviews, and at town halls across the state during this campaign." In a 27 August 2018 op-ed for the Houston Chronicle and  San Antonio Express-News, O'Rourke himself wrote: op-ed Twenty-three years ago I was arrested for attempted forcible entry after jumping a fence at the University of Texas at El Paso. I spent a night in the El Paso County Jail, was able to make bail the next day, and was released. Three years later, I was arrested for drunk driving -- a far more serious mistake for which there is no excuse. According to El Paso county jail records, O'Rourke was arrested for attempted burglary on 19 May 1995, when he was 22 years old. He was released from custody the same day. Court records show that the prosecutor dropped the charge in February 1996. records records O'Rourke was also arrested for driving while intoxicated on 27 September 1998, the day after his 26th birthday. He completed a "misdemeanor diversion program" (namely "DWI school") in October 1999, and the charge was dropped. arrested In August 2018, the Houston Chronicle and San Antonio Express-News cited police reports, including a witness account, which suggested that the incident leading to O'Rourke's DWI arrest was relatively serious and involved a collision with another vehicle and a possible attempt by O'Rourke to leave the scene: cited State and local police reports obtained by the Chronicle and Express-News show that ORourke was driving drunk at what a witness called a high rate of speed in a 75 mph zone on Interstate 10 about a mile from the New Mexico border. He lost control and hit a truck, sending his car careening across the center median into oncoming lanes. The witness, who stopped at the scene, later told police that ORourke had tried to drive away from the scene. O'Rourke recorded a 0.136 and 0.134 on police breathalyzers, above a blood-alcohol level of 0.10, the state legal limit at the time. In the case of his DWI arrest, O'Rourke did not face prison time because he completed an alternative adjudication program. It's not clear why the attempted burglary charge was dropped in 1996 (we asked the O'Rourke campaign about this but didn't receive a response to that particular question in time for publication). However, we could find no evidence that O'Rourke's father had any role in either case, nor did the meme offer any evidence. Congressman O'Rourke's father Pat was the El Paso County judge until 1986 -- a kind of chief executive of the county's governing body, the Commissioners Court -- so he had not held office for nine years by the time of his son's attempted burglary arrest. judge governing body The meme claimed: INSIDER TRADING VIOLATIONS After being sent a memo specifically prohibiting investment in Twitter's IPO [initial public offering], O'Rourke made a tidy one-day profit on it. When uncovered by a government watchdog, he quickly turned himself in. This violation of the STOCK Act (Stop Trading on Congressional Knowledge) is apparently a habit, as there are several other instances of this behavior; he characterizes them as mistakes. Despite the meme's claim, O'Rourke has never been charged with, or convicted of, violating any laws related to insider trading, including the STOCK Act, which bars members of the U.S. Congress from benefiting from financial transactions made on the basis of information they received in their capacity as members of Congress. STOCK Act But this section of the meme does contain elements of truth in that -- after the matter was brought to light by a third party -- O'Rourke reported his potential violation of rules to the House Ethics Committee (for stock transactions he maintained were executed by his broker without his knowledge), and the matter was resolved without any charges being brought against him: violation U.S. Rep. Beto ORourke alerted the House Ethics Committee that he might have violated a new law restricting members of Congress from engaging in certain stock transactions. It is the first case to come before the committee involving a 2012 law that prohibits members of Congress from participating in initial public offerings, or IPOs, other than what is available to members of the public generally, said Melanie Sloan, executive director of the Committee for Ethics and Responsibility in Washington, a watchdog group. ORourke, a Democrat whose district covers a portion of western Texas, reported the possible violation after Legistorm, an online news site that tracks congressional issues, informed him that his Nov. 15 disclosure saying he participated in the Twitter IPO earlier in the month might indicate a violation of a 2012 law called the Stop Trading on Congressional Knowledge Act, or STOCK Act. The freshman congressman also reported that, through his stockbroker, he participated in six other initial public offerings this year. In an interview, ORourke said he didnt see a Nov. 5 memo from the House Ethics Committee warning members of Congress about participating in IPOs. On 27 November 2013, O'Rourke wrote on Facebook that the ethics committee had informed him they would consider the issue resolved once he sold off any remaining shares that he bought during any IPOs, and sent the U.S. Treasury a check equal to the amount he earned in profits from those IPO-related shares: wrote Upon receiving the letter from the Committee today I instructed my broker to sell all remaining shares, which he did. I then sent a check for the full amount of the profit from all IPO trades this year to the U.S. Treasury by overnight mail. Copies of the trades and the check have been sent to the Ethics Committee. I apologize to the House of Representatives and to the people I represent for not exercising due diligence. I will be much more thorough in the future concerning financial transactions and do my best to ensure that I am in full compliance with all rules covering members of Congress. Records filed with the Clerk of the House of Representatives show that O'Rourke bought between $1,000 and $15,000 worth of shares in Twitter on 7 November 2013 (the first day the company was traded on the stock market), before selling off between $1,000 and $15,000 in shares later that day. filed Records also indicate that on 27 November 2013, O'Rourke again sold off between $1,000 and $15,000 worth of Twitter shares "pursuant to the recommendations made by House Ethics Committee in a letter from 11/27/13." indicate The meme claimed: FATHER'S DRUG SCANDAL O'Rourke's father, while county judge, had a 2-way radio installed in his Jeep. Installers discovered a condom packed with a "white powder" concealed in his vehicle and called police. Much to the dismay of investigating officers, the Captain on duty, a friend and political ally of O'Rourke, flushed the evidence down the toilet and dropped the charges. The Captain was subsequently suspended and tried for tampering with evidence. This section of the meme relates to incidents which took place in 1983, when Beto O'Rourke was 10 years old, and which had absolutely nothing to do with him. Nevertheless, it's true that in February 1983, El Paso County Sheriff's Captain Willie Hill told two police officers to get rid of a condom full of white powder which they had found in Pat O'Rourke's car while they were installing a radio in it. The officers suspected the powder to be heroin or cocaine, but the substance was never tested to determine its true nature. Hill was temporarily suspended but was reinstated after being acquitted on a misdemeanor charge of evidence tampering. (The prosecutor had earlier dropped a charge of misconduct against him.) Hill testified that he made a snap decision about the discovery of the powder, which he strongly suspected had been planted there to embarrass or undermine either O'Rourke or one of the officers installing the radio. being acquitted O'Rourke and Hill were friends, as O'Rourke (then county judge) told the El Paso Times: "Because he's a good man, it would be an injustice if Willie were to suffer grievous consequences from this whole episode. You have an honest and honorable man implicated by pure fluke. And that's just damn right not fair." El Paso Times The meme claimed: FAMILY BUSINESS FEDERALLY PROSECUTED O'Rourke's family business "Charlotte's Furniture," a store "Beto," his mother and sister are involved with, was charged in 2010 with altering records to avoid IRS reporting. Investigators found they accepted cash payments, in one instance over $630,000 from an unnamed individual (that's a LOT of furniture)! Found guilty on 15 counts, the sentence was a $250,000 fine and 5 years' probation. Around the time O'Rourke announced as a senate candidate, the business was shuttered and its records became unavailable. O'Rourke passes the prosecution off as a "mistake"; it's been covered, move along, nothing to see here. The meme got the basic facts right about the federal tax case against Charlotte's, but it falsely claimed that Congressman O'Rourke was personally "involved" in the company. He was not. In 2010, Charlotte's Inc., an El Paso furniture store company started by O'Rourke's grandmother in 1951, was convicted of "structuring transactions to evade reporting requirements, a tax-related felony. The company was charged as a corporate entity, but the Congressman's mother, Melissa O'Rourke, acted as its authorized representative. felony The company pled guilty to accusations that it had restructured transactions in order to present relatively large cash payments as having been made in installments of less than $10,000. Anti-money laundering provisions of U.S. law require that a business reveal the identity of any individual who makes a cash payment above that threshold. restructured provisions In total, Charlotte's and its employees illegally restructured $630,000 in payments, all from one customer, in this way between May 2005 and October 2006. The identity of that customer is not known. U.S. District Court judge Kathleen Cardone gave a sentence of five years' probation and a $500,000 fine, with $250,000 of that suspended. sentence In 2017, Melissa O'Rourke announced that she intended to close down the business but denied the decision was connected to her son's U.S. Senate campaign or the 2010 conviction. announced According to Texas Comptroller of Public Accounts records for 2017, Congressman O'Rourke had no formal role with Charlotte's Inc., whose directors were Melissa O'Rourke and the Congressman's sister Charlotte O'Rourke. records Records for 2005 and 2006 (when the I.R.S. reporting violations took place) as well as 2010 (when the conviction happened) show that Congressman O'Rourke had no formal role with the company at those times, either. Records The Congressman is part owner of the property where Charlotte's was located. According to O'Rourke's 2013 congressional financial disclosure, his mother gifted him an ownership stake worth between $1 million and $5 million in Peppertree Square, a shopping center on North Mesa St. in El Paso. disclosure However, his part ownership of the Peppertree Square property (which does not appear to entail any management function in any of the businesses located there) did not accrue until 31 December 2012, more than six years after the conclusion of the I.R.S. reporting violations at Charlotte's. O'Rourke, Robert Beto.  "Statement of Candidacy."
  Federal Election Commission.  9 July 2018. Bradner, Eric.  "With Primary Ending, Cruz Takes Opening Shot at Beto O'Rourke's Name."
  CNN.  7 March 2018. Stanton, John.  "Juarez's Biggest Booster Is an Irish-American Congressman."
  BuzzFeed News.  14 October 2014. Draper, Robert.  "Texas, Three Ways."
  The New York Times.  14 November 2014. Scharrer, Gary.  "O'Rourke Goes Out Talking."
  The El Paso Times.  8 December 1986. The El Paso Times.  "Consumers Dial Up Web Site."
  16 June 1999. O'Rourke, Beto.  "Texas Should Lead the Way on True Criminal Justice Reform."
  The Houston Chronicle.  27 August 2018. Diaz, Kevin.  "Police Reports Detail Beto O'Rourke's 1998 DWI Arrest."
  The Houston Chronicle.  31 August 2018. Cruz, Laura.  "Friends, Family Say Goodbye to O'Rourke."
  The El Paso Times.  7 July 2001. The White House.  "Fact Sheet: The STOCK Act -- Bans Members of Congress from Insider Trading."
  4 April 2012. The El Paso Times.  "Congressman May Have Broken Ethics Rules with Twitter Stock Purchase."
  26 November 2013. Landis, David.  "Jurors Decided Hill Negligent, Not Criminal."
  The El Paso Times.  23 December 1983. Scharrer, Gary.  "O'Rourke Expresses Sorrow Over Charge."
  The El Paso Times.  29 October 1983. Legal Information Institute.  "U.S. Code, Title 31, Subtitle IV, Chapter 53, Subchapter II, Section 5324 -- Structuring Transactions to Evade Reporting Requirement Prohibite."
  Cornell Law School.  Accessed 31 August 2018. U.S. District Court, Western District of Texas, El Paso Division.  "U.S.A. vs Charlotte's Inc. -- Information."
  4 May 2010. U.S. District Court, Western District of Texas, El Paso Division.  "U.S.A. vs Charlotte's Inc. -- Amended Judgment."
  8 June 2010. Villa, Pablo.  "Charlotte's Furniture Store to Close This Year, Owner Says."
  The El Paso Times.  4 August 2017. Correction [4 September 2018]: This article has been updated to more accurately describe the role of El Paso County judge. In August 2020, amid an ongoing political crisis in the U.S. surrounding the Postal Service and mail-in ballots, readers asked Snopes to examine widespread claims that by texting "USPS" to the number 50409, an individual could send a letter to their local political representatives expressing support for the Postal Service. crisis The COVID-19 coronavirus pandemic prompted millions of Americans to consider voting by mail, rather than in person, in 2020. But cuts at the Postal Service caused a slowdown in deliveries that meant millions of ballots were at risk of not being counted. U.S. President Donald Trump admitted he was pushing back against a fresh infusion of funding for the Postal Service, on the basis that mail-in ballots would disproportionately favor the presumptive Democratic presidential nominee Joe Biden, fueling a partisan battle, with Democrats demanding a properly funded, well-functioning Postal Service.  admitted On Aug. 15, 2020, Democratic Congressional candidate Allen Ellison tweeted that "If you text USPS to 50409 they will send letters to your senators and representative in support of the postal service. It literally takes under a minute." tweeted A similar exhortation posted on Facebook read: "Pushback pressure is working. Text USPS to 50409. This one-word text will automatically send a letter to your local representatives using Resistbot and urge them to take action. Thanks." posted   The process is not quite as straightforward as described in the meme above, but it is true that texting "USPS" to 50409 does begin a relatively quick process under which, on your behalf, a bot sends letters to your federal political representatives based on the mailing address you provide. We tested the bot on Aug. 18, 2020, using the SMS utility on a cellphone and providing a real name and address in Pennsylvania's 8th Congressional District. (The creators of "Resistbot" state that the same process works on Apple's iMessage, Facebook's Messenger, Twitter, and the encrypted text message app Telegram.) The following is a step-by-step breakdown of how the bot works: state First, the user texts "USPS" to 50409. The bot automatically and immediately replies, asking if the user wants to electronically sign a "Support the USPS" letter and send it to the user's political representatives. It also offers to show a sample of what the letter will look like:   When the user replies with "SAMPLE," the bot replies with a link to a screenshot of the form letter and asks if the user would like to sign it:   After the user confirms, the bot then asks for a first and last name and a mailing address:   The bot adds the user's name to the petition and the mailing address allows it to identify the user's congressional district. The bot then automatically sends the letter via email to the corresponding members of the U.S. House of Representatives and Senate:   From start to finish, the process took around five minutes with the only significant delay coming when the user awaits a verification code sent to their email address.  Snopes could confirm that the letter was sent to the representatives in question because the office of one of them, U.S. Rep. Matt Cartwright, D-Pennsylvania, happened to respond later on with an acknowledgement that explicitly addressed the topic of the letter, the Postal Service:   Claims that "Resistbot" allowed users to quickly send letters to their political representatives were true, although it should be noted that the user is, for obvious reasons, required to actively provide a valid name, mailing address, and email address, and the letter is sent to federal representatives only, not state legislators. According to the Resistbot website, the bot is a "product of the Resistbot Action Fund, a 501(c)(4) social welfare organization" with an address in Florida. The group's Executive Director Jason Putorti sent Snopes a copy of the Resistbot Action Fund's certificate of incorporation, showing that it was registered as a non-profit organization in the state of Delaware in February 2018. website registered Riccardi, Nicholas.  "Q&A: What's Happening at the Postal Service, And Why?"
  The Associated Press.  15 August 2020. Delaware Secretary of State.  "Certificate of Incorporation -- Resistbot Action Fund."
  26 February 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 May 2020, a video supposedly showing Vice President Mike Pence delivering empty boxes that were supposed to be filled with personal protective equipment (PPE) to the Woodbine Rehabilitation and Healthcare Center in Alexandria, Virginia, was featured on the show "Jimmy Kimmel Live." A clip of this segment was later shared on social media along with the caption: "Mike Pence caught on hot mic delivering empty boxes of PPE for a PR stunt."  This is genuine footage of Pence. However, it does not show him "caught on hot mic" admitting that he just delivered a bunch of empty boxes to a health care facility. This video actually shows Pence making a humorous quip after delivering boxes that were truly filled with PPE.  The full video from C-Span shows Pence transporting several boxes from a truck to the door of the health care center. After unloading the boxes from his dolly, Pence returns to the truck to grab another round of boxes but is informed by someone that the remaining boxes are empty. Pence then jokes that he should carry one of the empty boxes for the cameras. The man replies with a quip of his own, saying that the empty ones are much easier to carry than the full ones, which draws laughter from the crowd. Pence then closes the van door. You can see this exchange around the 9-minute mark of the following video from C-Span: https://www.c-span.org/video/?471876-1/vice-president-pence-delivers-ppe-woodbine-rehabilitation-center We reached out to the Woodbine Rehabilitation Center to confirm that it had received PPE from the vice president. While we have yet to receive a response, the facility did post a message on Facebook to thank Pence and his team: Facebook   Jon Thompson, a spokesperson for the vice president, called the claim that Pence was delivering empty boxes "absolute garbage" in a tweet: tweet     Coleman, Justine.  "Pence Delivers PPE to Alexandria Nursing Home."
  The Hill.  7 May 2020. C-Span.  "Vice President Pence Delivers PPE to Woodbine Rehabilitation Center."
  7 May 2020.