Finance experts estimate that paying in cash for the $2.5 billion in projects funded by the sales tax saved Gwinnett County more than $1 billion in interest payments.
The election results are in, but we still had a question concerning a particular item on the ballot in Georgias second-largest county that seemed worthy for a fact check. Gwinnett County officials had an interesting sales pitch to voters about the merits of continuing a 1 percent special purpose local option sales tax to pay for various projects. It would cost the county more money if they had to borrow the cash instead of collecting it in sales taxes. How much more? One billion dollars. Heres a passage about it from an interview with Gwinnett Commission Chairwoman Charlotte Nash in the Gwinnett Daily Post: SPLOST is the best tool that the Legislature has ever given local government, Nash said, adding that finance experts estimate that paying in cash for the $2.5 billion in projects funded by the sales tax saved the county more than $1 billion in interest payments that would have been owed if debt had been issued. It allowed us to work on those quality of life things, and we were able to do it without debt. PolitiFact Georgia wondered if Gwinnett would have spent $1 billion in interest payments had the county borrowed the money for the projects as opposed to collecting revenue from the sales tax. Gwinnett voters passed the countys first SPLOST program in June 1985. Theyve approved SPLOST referendums in 1987, 1991, 1996, 2000, 2004 and 2008. Since 1985, Gwinnett officials say theyve collected about $2.5 billion in SPLOST revenue. On Nov. 5, Gwinnett voters approved the latest SPLOST referendum by a 58-42 percent margin. The sales tax would raise $498 million over the next three years. More than two-thirds of the money will be spent on roads, bridges, drainage, sidewalks, intersection improvements and other transportation projects. The countys 16 cities will collect about $100 million. The rest will be spent on public safety equipment; parks; library and senior citizen facilities; water and sewer improvements; and parking. Gwinnett officials told PolitiFact Georgia they calculated the potential interest rates by using a municipal index scale for counties with AAA bond ratings. Gwinnett gave us the average interest rates for a 20-year deal originated at the beginning of the year for each time period. The interest rates ranged from 8.9 percent in 1985 and gradually declined to 3.85 percent for the SPLOST passed in 2004. The interest rate for the SPLOST referendum passed in 2008 was not included in the countys calculations. Several experts we spoke with said the countys methodology appeared sound. In order for the county to have accomplished the capital outlay projects funded by the SPLOSTs, it would have either had to impose massive property tax increases to fund the projects or borrow money to finance the projects. Borrowing money to finance the projects would have been less painful for the property taxpayers than imposing millage rate increases to fund the projects, because debt can be paid off over 20-30 years, said Earle Taylor III, who has spent about three decades working on public financing projects and is a partner at the law firm McKenna, Long & Aldridge. Ray Hill, who teaches managerial economics and finance at Emory University, said the countys claim is based on the assumption that Gwinnett would have borrowed that much money. Hill and Taylor didnt see any glaring holes in the countys calculations. If the assumption was that, in any event, the county was going to spend an amount of money equal to the SPLOST revenues, it would be easy to get to an interest saving figure of $1 billion, said Hill, who is an expert in financing large projects. The potential interest rates look reasonable. If you assumed they issued a 20-year bond at the amounts listed, you could easily get interest payments that total $1 billion. To sum up, Nash said Gwinnett County would have spent $1 billion in interest payments had the county borrowed the money for the projects as opposed to collecting revenue from the sales tax. Experts we interviewed agreed with the countys methodology and math. We did our own calculations, and it appeared to us that they would have paid more than $1 billion in interest had they borrowed $2.5 billion. We rate Nashs claim as True.
A nine year-old viral Facebook post that portrays the United States as soft on illegal immigration enjoyed something of a resurgence in early 2018, most likely in light of ongoing negotiations between President Donald Trump and Congressional Democrats over the fate of immigrants who were brought to the U.S. as children by their undocumented parents and who have previously been allowed to stay in the United States under the Deferred Action for Childhood Arrivals (DACA) program. The wording of the post, which was turned into a meme, has been repeated since at least 2009, and has been adapted for Australian and Canadian audiences over the years. There have been small variations here and there, but it typically goes something like this: Australian Canadian this   Undocumented immigrants do have some rights and entitlements, but the meme vastly overstates these entitlements, and omits to mention the many burdens and disadvantages placed on these immigrants, including the constant possibility of arrest and deportation.  A job Adults who enter the United States illegally are not provided with a job. In fact, it's illegal to knowingly hire any immigrant who isn't authorized to work in the country (whether they entered the United States illegally or overstayed a visa after entering legally.) illegal Of course, that doesn't stop the practice from happening, and according to a 2017 analysis by the Pew Research Institute, there were around 8 million unauthorized immigrants working or looking for work in the United States in 2014. analysis A driver's license This depends on where you live. As of January 2018, there are 12 states (and the District of Columbia) which allow immigrants without legal status to obtain a driver's license. Some of the states where unauthorized immigrants can drive (California, New Jersey, Illinois) have relatively high undocumented populations. 12 states populations Food stamps An immigrant who does not have a legal status in the United States is not eligible for food stamps (the Supplemental Nutrition Assistance Program), although their children might be. Indeed, undocumented immigrants do not receive most kinds of welfare benefits, even though they do pay taxes.  not eligible benefits According to the Institute on Taxation and Economic Policy, a non-partisan think tank, undocumented immigrants collectively contribute almost $12 billion per year in state and local sales, income and property taxes.  contribute "A place to live" Generally speaking, undocumented immigrants are not eligible for federal housing benefits like public housing, rental assistance, and vouchers. However, as a 2015 Congressional Research Service report outlines, some undocumented immigrants may live in a household with citizens or qualified immigrants, and thereby indirectly benefit from some public housing assistance (although the level of that assistance is reduced on a pro rata basis, due to the presence of that undocumented immigrant.) report Undocumented immigrants are eligible for emergency assistance such as homeless accomodation and domestic violence shelters.  It is possible for an undocumented immigrant to own a home, either by buying it outright with cash, or by using something called an individual tax identification number (ITIN) mortgage. This allows non-citizens (including undocumented immigrants) to bypass the usual requirement of having a social security number to take out a mortgage.  ITIN Some 31 percent of undocumented immigrants live in a home that is owned by at least one of its residents (as opposed to rented), according to a Migration Policy Institute analysis of data from the United States Census Bureau's 2014 American Community Survey.  analysis Health care Undocumented immigrants are not eligible to enroll in Medicaid, the Children's Health Insurance Program (CHIP) and the Affordable Care Act (Obamacare) Health Insurance Marketplace, significantly curtailing the affordable health insurance and health care available to them. not eligible However, six states and the District of Columbia have rules that allow undocumented immigrant children to avail themselves of Medicaid benefits, and undocumented immigrants are also entitled to emergency medical care.  six states emergency According to a 2017 Kaiser Family Foundation analysis, non-elderly undocumented immigrants are four times more likely than United States citizens to be uninsured, and fears about immigration enforcement and detection often cause undocumented immigrants to forgo preventive healthcare, leading to worse outcomes.  analysis Child benefits It's not entirely clear what the creator of this meme means by "child benefits," but let's take a look. Undocumented immigrant tax-payers (using an ITIN rather than a social security number) can avail themselves of a child tax credit.  child tax credit Low-income undocumented immigrants are also eligible for the Special Supplemental Nutrition Program for Women, Infants and Children (WIC), which provides food and infant formula assistance, as well as nutritional and immunization assessments.  WIC Undocumented immigrants are not eligible for TANF (Temporary Assistance for Needy Families), a federal program that provides financial help to low-income families and pregnant women. TANF Education In 1982, the U.S. Supreme Court ruled that states are constitutionally barred from denying children a public school education on the basis of their immigration status. As a result, undocumented immigrant children can attend public schools for free, like any other children. ruled While attending public schools, undocumented children can benefit from federal nutrition services like the School Breakfast Program and National School Lunch Program.  Program Program Only two states (Alabama and South Carolina) do not allow undocumented immigrants to attend public colleges and other third-level institutions, and three others (Arizona, Georgia and Indiana) do not allow them to pay lower in-state tuition rates, according to the National Conference of State Legislatures. allow Undocumented students are not allowed to receive federal financial aid for higher education, but they might be able to get state aid or private scholarships.  federal A tax-free business for seven years This is completely false. Undocumented immigrants pay taxes, and there is no provision in law at the federal or state level which grants them any kind of "tax holiday." false Legal Information Institute. "United States Code, Title 8, Chapter 12, Subchapter II, Part VIII, Section 1324a - Unlawful Employment of Aliens."
 Cornell University. 30 October 2004. Passel, Jeffrey S.; Cohn, D'Vera. "Size of U.S. Unauthorized Immigrant Workforce Stable After the Great Recession."
 Pew Research Center. 3 November 2016. Mendoza, Gilberto. "States Offering Driver's Licenses to Immigrants."
 National Conference of State Legislatures. 30 November 2016. Krogstad, Jens Manuel;Passel, Jeffrey S.; Cohn, D'Vera. "5 Facts About Illegal Immigration in the U.S."
Pew Research Center. 27 April 2017. Watson, Tara. "Do Undocumented Immigrants Overuse Government Benefits?"
 Econofact. 28 March 2017. Christensen Gee, Lisa et al. "Undocumented Immigrants' State and Local Tax Contributions."
 Institute on Taxation and Economic Policy. 2 March 2017. McCarty, Maggie; Siskin, Alison. "Immigration: Noncitizen Eligibility for Needs-Based Housing Programs."
 Congressional Research Service. 8 December 2015. Kasperkevic, Jana. "The American Dream: How Undocumented Immigrants Buy Homes in the U.S."
 Marketplace. 11 September 2017. The Henry J. Kaiser Family Foundation. "Health Coverage of Immigrants."
The Henry J. Kaiser Family Foundation. 13 December 2017. Ollova, Michael. "More Immigrant Children in U.S. Illegally to Receive Health Care."
 Pew Charitable Trusts. 8 August 2017. Siskin, Alison. "Noncitizen Eligibility for Federal Public Assistance: Policy Overview."
 Congressional Research Service. 12 December 2016. American Immigration Council. "Public Education for Immigrant Students: Understanding Plyler v. Doe."
 American Immigration Council. 24 October 2016. Hultin, Suzanne. "Undocumented Student Tuition: Overview."
 National Conference of State Legislatures. 29 October 2015. Mikkelson, David. "Tax Holidays for Immigrants."
 Snopes.com. 23 November 2012. On Dec. 4, 2022, the Right Wing Patriots of America Telegram account and Facebook page posted a doctored picture of U.S. first lady Jill Biden that showed a pattern of red lobsters on her outfit. The caption in the post read, "Has Red Lobster gotten into the fashion business?" posted  In reality, the original photograph of Jill Biden did not show any lobsters on her outfit as she walked along with U.S. President Joe Biden.  The original picture was captured by Jim Lo Scalzo of UPI and was captioned as follows, "U.S. President Joe Biden and first lady Jill Biden return to the White House from a weekend at Camp David in Washington, D.C., on a Sunday in May 2021." original picture Reuters first reported on the fake photo with the lobsters on Dec. 5, adding that they had located the picture being shared on Twitter and in a since-deleted Instagram post. reported Twitter "Fact Check - Image of First Lady Jill Biden with Lobster-Patterned Clothing Is Digitally Altered." Reuters, 5 Dec. 2022, https://www.reuters.com/article/factcheck-jill-biden-lobsteroutfit-idUSL1N32V1S0. Scalzo, Jim Lo. "Photo: Biden Returns to White House from Camp David - WAX20210523202." UPI, May 2021, https://www.upi.com/News_Photos/view/upi/73bec9a417606f401652001501b10f9c/Biden-returns-to-White-House-from-Camp-David/. With control of the U.S. House at stake, Republicans and Democrats are waging fierce election campaigns across the country. In Ohio, at least four seats are considered in play, including the 16th Congressional District seat held by freshman Democratic Rep. John Boccieri of Alliance, a former state legislator who faces a well-financed Republican challenge from businessman Jim Renacci, a former Wadsworth mayor.The American Federation of State, County and Municipal Employees union has joined the fight, attacking Renacci in two television advertisements. We recently looked into astatementin the first ad, which accused Renacci of backing a massive tax increase, and found it to be Half True.The second ad levels an even harsher accusation that Renacci cheated on his income taxes and labels him a deadbeat citizen.Renacci hasfiled a defamationlawsuitin Stark County Common Pleas Court over the ad, which says he hid more than $13 million, and was forced to pay $1.4 million in back taxes and penalties. We wanted to see if AFSCME got closer to the truth the second time around.The basis of the attack is a dispute between Renacci and the Ohio Department of Taxation. Renacci has built a fortune from business interests that include nursing homes, real estate investments, auto and motorcycle dealerships, a bar and grill, an arena football team and a minor-league baseball team.The tax department assessed Renacci about $1.4 million in back taxes, interest and penalties for misreporting his income in 2000. Renacci and his wife, Tina, filed a state tax return for that year that claimed they had a loss of $247,336, but an audit found they actually made $13,730,440. The couple filed a tax appeal when the state dinged them for $954,650 in back taxes, $146,938 in interest and $293,876 in penalties.At issue was Renaccis trust income from an S corporation that had not been subject to state taxes for several years before Ohios tax commissioner issued an information release in January 2000 that changed the states policy and directed taxpayers to add such trust income to their federal adjusted gross income. S corporations permit income to be taxed at an individual rate for federal tax purposes and avoid double taxation on corporate income.The tax department followed up with another information release in 2002 warning that it was launching audits and would impose fraud penalties on taxpayers who did not file amended returns reflecting the trust income and pay the taxes due.Renacci was among a group of taxpayers who fought the state decision. He contended that the trust income should have been tax-free and that he had reasonable cause to exclude it on his tax return, according to tax department and court documents.Others dropped their appeals, but Renacci continued to fight, despite an Ohio Supreme Court ruling in 2006 in a similar case in which the court said the trust income was subject to taxation. In that case, the taxpayers reported their S corporation income on their 2000 tax return and then unsuccessfully asked for a refund.Court records show the Renaccis eventually settled the tax dispute and sent the state the full amount due.He was proud of his fight, and to have fought till the end, along with many other Ohioans for tax fairness, Renaccis campaign spokesman Jim Slepian said in an interview for a Plain Dealer story in April.The AFSCME ad cites as its source an Associated Press story from April that said Renacci fought vigorously but eventually paid the back taxes and other assessments.Websters New World Dictionary defines cheat as a person who defrauds, deceives, or tricks others; swindler. And it defines deadbeat as a person who tries to evade paying debts.It seems legitimate to raise questions about Renaccis failure to properly report his income. Some facts are not in dispute. But in the end, after taking his dispute to court and working within the system to resolve it, he did ultimately pay the state the full amount due and he wasnt ever charged with tax fraud.We rate AFSCMEs statement as Mostly True. Comment on this item. Claim:  Alabama mom's Obamacare horror story gives America a glimpse of government run healthcare. CORRECTLY ATTRIBUTED Example:  [Collected on the Internet, December 2013] My family's journey with securing our new insurance under the Affordable Care Act (ACA) started on October 1, 2013.   I have decided to write this letter to let the American people know what it has been like for us.   We are a family of four, with two little boys' ages seven years old and three years old.   My husband and I have had full time jobs for 6 years and 13 years respectively.  We have been with the same two companies for those years.  We are a middle class family; we own our three bedroom two bath house, we own two cars, and previously provided our own insurance for the four of us.  We have coverage through Individual Blue from Blue Cross Blue Shield of Alabama until 12/31/13. Our premiums have been $380.00 a month, which also included dental coverage for all four of us.  On October, 1, 2013 we received our letters like other Alabamians about our new premiums and plans for 2014 from Blue Cross Blue Shield (BCBS) of Alabama.  When I opened our letter to say I had sticker shock was an understatement.  Our premiums for the Blue Saver Silver would now be $753.26. This included the ACA tax but did not include the additional $75.00 we would need to pay in order to keep dental for me and my husband.  So we would need to pay total $828.26 to keep health and dental insurance for the four of us.  This payment is roughly $64.00 less than what we pay for our mortgage each month.  I was outraged that anyone thought we could afford this.  Sure we have some savings, but with that price tag we would whittle it down to almost nothing very quickly.  I consider savings as a rainy day fund, a start to saving for the kids college, our retirement, etc.  I never dreamed in a million years we would need to use it to pay our insurance premiums each month  how in the world could this help the economy too?  [Rest of article here.] here Origins:  The item referenced above, an open detailing one Alabama woman's extreme difficulty and frustration in obtaining ACA-compliant health insurance coverage for her family (including her 7-year-old son with ADHD) was posted under the name of Karri Kinder on 23 December 2013 as the sole entry in a blog and was republished (without additional comment) by the Independent Journal Review on 31 December 2013. blog republished Certainly her experience is not unique in kind, as many residents of Alabama covered by Blue Cross and Blue Shield (BCBS) of Alabama (an insurer who has an 88% share of the state's health insurance market) found out at the end of 2013 that they would be paying much higher premiums for ACA-compliant coverage through BCBS: Doug Hoffman, who works statewide to help people sign up for benefits through the Affordable Care Act, just received a Blue Cross and Blue Shield of Alabama notice in the mail to find health insurance rates for his family have doubled. And  he's mad  at Blue Cross. "I just got my benefits renewal from Blue Cross for next year and they doubled my rate!" he wrote AL.com in an email. "I was paying $675 for a family premium (2 adults, one 22 yo dependent) with a $1,500 deducible. The new rate for a comparable plan is $1,360 with a $3,000 deductible. Basically they have doubled my costs." "It appears as though Blue Cross is taking advantage of the ACA by hiking rates big time," said Hoffman, who is based in Birmingham with Enroll Alabama. Others, who have received the notices from the state's dominant health insurer are mad as well  at Obamacare. "Obama thinks that he is making insurance affordable," wrote one reader to the Mobile Press Register Sound Off feature. "I just got a letter from my Blue Cross Blue Shield that if I want to keep their insurance it's going to cost me $300 more a month. I already pay $300 a month now and they're wanting right at $600 a month for this Affordable Care Act." Blue Cross posted an explanation for the rate hikes to its Facebook page, maintaining that several reasons are behind the increased premiums: more taxes and fees, a requirement to rate family members individually, and the elimination of health underwriting and waiting periods for preexisting conditions: explanation The new law requires all health insurance companies in the individual and small group markets to use a consistent rating method called "member level rating." For the individual market, this means each person on an insurance policy will now be rated based on age, whether he or she uses tobacco, and the county in which the policy holder lives. In the past Blue Cross was able to offer one family premium, no matter the size.  For family plans, most family members will now be rated individually. Once each person has been rated, the amounts are added together to get a family's premium cost. For children age 20 and younger, the oldest three children will be individually rated and included in the family premium amount.   As a result, larger families may experience higher premiums. As Mike Oliver noted in an article for AL.com, the elimination of health underwriting may have a substantial effect on health insurance premiums in that state: article "Alabama has allowed medical underwriting  you're going to be quoted a high premium if you have something wrong with you," said Michael Morrisey, director of the University of Alabama at Birmingham Lister Hill Center for Health Policy. "The Affordable Care Act abolishes medical underwriting." This means that those with expensive health problems will likely now jump in and buy coverage because it will be less expensive for them  or if they already have coverage  their rates will go down. But that also means rates will go up for everyone else as the insurer spreads that new cost around. "The thing that happens when you eliminate underwriting is that you lump dissimilar people together," Morrisey said. "When you combine groups, one group is better off and the other group is worse off"  in terms of premium prices. As a policy, the elimination of medical underwriting and preexisting condition clauses helps broaden access to health care coverage and that was the aim of its inclusion in the Affordable Care Act. Reformers say it eliminates insurers from "cherry-picking" and reduces uncompensated care. Karri Kinder subsequently posted followups to her original blog entry about her insurance issue, the update of 4 January 2014 stating that: Karri Kinder blog entry I do have some good news.  Because I decided to write my letter and speak out, people stepped up and helped us.  We were contacted on January 1, 2014 by the U.S. Department of Health and Human Services.  I was told by the woman I spoke with that she had read my letter and wanted to get her team involved and see what they could do to help us.  I recounted to her what was happening and that I had been advised to go ahead and sign me and my husband up for a plan on healthcare.gov.  We went with a lower cost plan because it was going to just be the two of us.  We had no idea what it was going to cost for the children once we got some answers.  So we went with BCBS Blue Value Saver plan.  The cost of the plan is $459.19.  We qualified for $255.00 in subsidies so the final cost of the plan to us is $204.19 each month.  I told the lady that I would cancel that plan if I needed to.  What we wanted was to have all of us on one plan like we always have been.  She said, "If the kids qualify for All Kids then I am pretty sure they have to go that route or you will have to buy them a plan at the normal rate."  So again we were told more than likely we will have to go through All Kids.  She took the rest of our information down and said she was getting her team to work on it and would either call us back or All Kids would contact us. Last updated:  4 January 2014    Oliver, Mike.   "Blue Cross in Alabama: We Didn't 'Cancel' Health Policies."   AL.com.  2 December 2013.    Walsh, Alex.   "Obamacare, Big Blue, and You."   AL.com.  31 December 2013. In January 2016, a quote attributed to first U.S. president George Washington, about the importance of an armed citizenry, started recirculating on the internet:  This statement had been making the online rounds for several years, but it regained popularity in January 2016 after President Obama announced new measures on gun control. announced George Washington never uttered the phrase in question. The first ten words ("a free people ought not only be armed and disciplined") are taken from the former president's annual address to theSenate and House of Representatives on 8 January 1790, in which he argued in favor of an armed citizenry and self-sufficiency in production military supplies as a deterrent to war: annual address Among the many interesting objects which will engage your attention that of providing for the common defense will merit particular regard. To be prepared for war is one of the most effectual means of preserving peace. A free people ought not only to be armed, but disciplined; to which end a uniform and well-digested plan is requisite; and their safety and interest require that they should promote such manufactories as tend to render them independent of others for essential, particularly military, supplies. The proper establishment of the troops which may be deemed indispensable will be entitled to mature consideration. In the arrangements which may be made respecting it it will be of importance to conciliate the comfortable support of the officers and soldiers with a due regard to economy. A page dedicated to fake quotes attributed to George Washington on theMount Vernon web site addressed this passage as follows: addressed This quote is partially accurate as the beginning section is taken from Washington's First Annual Message to Congress on the State of the Union. However, the quote is then manipulated into a differing context and the remaining text is inaccurate. Although this meme does include a portion of Washington's first annual addressto members of theSenate and House of Representatives in1790, the majority of the quotewas never utteredby the Founding Father, and does not accurately represent his views on gun control. Nonetheless, its apocryphal nature doesn't hinder its continued reproduction as a genuine expression from George Washington: U.S. Rep. Gerry Connolly, D-11th, recently invoked the name of Ronald Reagan to drum up support for raising taxes for a new stimulus program.During a June 5floor speech, Connolly lamented the refusal of House Republican leaders to allow the American Jobs Act to come up for a vote. The bill, proposed by President Barack Obama, calls for $447 billion over 10 years to pay for infrastructure and school improvements, new job training programs, unemployment insurance, and temporary tax cuts for working families and small businesses.The stimulus would be funded by levying taxes on corporations and people earning more than $1 million a year.Connolly said the House, in considering the legislation, should ask, What would Ronald Reagan do?Many Republicans decried the use of additional revenue to help offset any increase in national debt, Connolly said. Apparently, they forgot that when faced with rising deficits, Ronald Reagan looked to revenue increases, broadening the tax base, closing loopholes and raising taxes. Yes, he raised taxes in 1982, 1984, 1985, 1986 and 1987.Did the Gipper really raise taxes during five years of his presidency? We checked.Lets start by noting that if you recall Reagan as tax cutter, your memory is good. Reagan campaigned in 1980 on reducing taxes. During his administration, the top income tax rate decreased from 70 percent in 1981 to 28 percent in 1986.But to combat a rising deficit and debt burden, Reagan also approved increased taxes.In 1982, The Tax Equity and Fiscal Responsibility Act raised taxes by $37.5 billion per year, and the Highway Revenue Act raised the gasoline tax by $3.3 billion.In 1983, Reagan signed off on legislation to raise payroll taxes and tax Social Security benefits for some higher earners.In 1984, the Deficit Reduction Act included increases in taxes on estates and distilled spirits and ended some business tax breaks, to the tune of $18 billion per year.In 1985, Reagan signed legislation making permanent a 16-cent federal excise tax on a pack of cigarettes, then worth about $2.4 billion a year.In 1986, the Tax Reform Act lowered the top income tax bracket from 50 percent to 28 percent. To pay for the reductions, however, the legislation closed a number of tax loopholes.In 1987, Reagan signed the Omnibus Budget Reconciliation Act that extended the telephone excise tax and eliminated a real estate tax deduction loophole.So its accurate to say Reagan increased levies during five years of his administration, but theres a caveat: The overall tax burden on businesses and individuals went down during his presidency.We examined data from the nonpartisan Tax Policy Center that computes the nations tax revenues as a percentage of its Gross Domestic Product -- the total of all goods and services produced.When Reagan took office in 1981, federal taxes were 19.6 percent of GDP, the highest level since World War II. That figure dropped to 17.3 percent during his first term and rose to 18.2 percent at the end of his second term.For comparison, federal tax revenues for this fiscal year are estimated at 15.8 percent of GDP.Reagans efforts to cut top income tax rates at the same time he was increasing defense spending created strain, and the federal debt rose from $994 billion at the start of his first term to almost $2.9 trillion at the end. As a result, Reagan was willing to accept and sometimes promote proposals that would close loopholes and create a broader tax base, according to C. Eugene Steuerle, who organized the Treasury Department's 1984-86 tax reform effort and is now a fellow at the Urban Institute and Tax Policy Center.This April, President Barack Obama said Reagan understood repeatedly that when the deficit started to get out of control, that for him to make a deal, he would have to propose both spending cuts and tax increases. PolitiFact National rated the claimMostly True, noting that Reagan did not repeatedly propose increases but agreed to tax hikes put forth by Congress.Our rulingConnolly said Reagan, as president raised taxes in 1982, 1984, 1985, 1986 and 1987. Reagan did, in fact, sign off on at least one tax increase during each of those years.Some of the increases were modest in scope. And its important to note that overall U.S. taxes, when measured as a portion of the nations GDP, went down during Reagans presidency.But theres no doubt that Reagan was willing to cut budget deals that included raising revenues. We rate Connollys statement True. Claim:  The United States Postal Service is discontinuing the "Black Heritage" series of stamps and destroying the remaining stock. Status:  False. Example:  [Collected on the Internet, 2000] Subject: Discontinuing and DESTROYING Black Stamps I was in the post office this morning and requested the African American stamp. The postal worker informed me that they will DESTROY all remaining African American Heritage stamps at the end of the month instead of following their usual process of selling them until they are depleted. She also said that they were asking patrons to complain to the Post Master and gave me a complaint form. Needless to say, I've already completed the form. The post office is considering discontinuing Black Heritage Stamps because they aren't selling.  Instead of taking the path of least resistance and accepting the love, flag, rose or teddy bear stamps that they offer you automatically, request African-American stamps each and every time you mail something.  If we don't buy them, nobody will. Perhaps you think it's not a major issue. However, it is a part of the ongoing effort to assert ourselves as a major economic force in this society. PASS THE MESSAGE ON AND LET'S KEEP BLACK STAMPS IN CIRCULATION. Origins:  Many of the messages we receive these days are expressions of the feeling that blacks are being overlooked and slighted by white Americans, particularly in the economic arena.  A common theme is    that major companies decline to advertise in media that reach primarily black audiences because theyfail to recognize both the social desires and income levels of black Americans.  (In other words, it's racism in another form: either the people running these companies are so prejudiced that they're willing to sacrifice revenues by not selling to blacks, or they don't realize that blacks are not one stereotypical bloc of uneducated, poor, blue-collar workers who couldn't possibly aspire to the finer things in life  or afford them even if they did.)  As well, other messages convey the sentiment that the roles of blacks in American history have been ignored or minimalized.  (See the controversy over the origins of the Statue of Liberty for one example.)  This current message touches on both these themes: postage stamps honoring the heritage and contributions of black Americans are being discontinued and destroyed for economic reasons: because people just don't buy them.   Statue of Liberty Whether the beliefs expressed in the previous paragraph are right or wrong (and that is not the issue here), this message about the end of the Black Heritage series of postage stamps is undeniably false. The United States Postal Service is neither discontinuing the Black Heritage series nor planning to destroy the remaining stock of Black Heritage stamps.  The series has been going strong for 31 years now, and the 2008 entry (the 31st stamp in this series) features civil rights leader Charles W. Chesnutt.  There is no end to the Black Heritage series in sight, no matter how well or poorly the stamps sell. As Executive Director of Stamp Services Azeezaly S. Jaffer was quoted as saying in an official official media statement: Charles W. Chesnutt official media statement Given the popularity and importance of the Black Heritage stamps, there are no plans to discontinue the series. It is unfortunate that such rumors have spread, and we hope that the Postal Services commitment to honoring the historical achievements and contributions of African Americans on stamps will dispel any further concerns This policy was confirmed yet again by the USPS in a March 2005 press release: press release To dispel recurring rumors that its long-standing Black Heritage stamp series will be discontinued, a senior postal official reiterated the Postal Service's continued commitment to honoring African Americans on stamps. "Nothing could be further from the truth. These rumors continue to resurface around this time of year," explained David Failor, Executive Director of Stamp Services, U.S. Postal Service, referring to the deluge of inquiries the Postal Service receives shortly after a Black Heritage stamp issuance.  He said, "As a main component of our annual stamp program, the Black Heritage series is alive and well, and here to stay. We're already looking forward to announcing next year's honoree this fall."  The myth started several years ago through an anonymous email that alerted recipients to buy Black Heritage stamps before Post Offices take them off sale due to lack of demand. Exhorting people to buy Black Heritage stamps as a way of honoring the memories of the individuals they depict (or Black Americans in general) is a worthy cause.  Coaxing people into buying them based on misinformation is not. Last updated:  30 November 2007 One of the more unusual political memes we've come across presented four different cases of tax-related financial improprieties to suggest that tax-evasion prosecutions were somehow influenced by racial bias against non-blacks:  However, the "Tax Racism" meme offered examples  not all of which were actual cases of tax evasion  so widely spaced in time and so differing in circumstances as to be non-useful in making any point at all about either tax fraud or race. Martha Stewart, the entrepreneur who rose to prominence as the author of books on cooking, entertaining, and decorating, was not charged with, or imprisoned for, non-payment of income taxes. Stewart was found guilty in March 2004 of felony charges of conspiracy, obstruction of an agency proceeding, and making false statements to federal investigators in a case related to a U.S. Securities and Exchange Commission (SEC) investigation into insider trading activity: investigation Washington, D.C., June 4, 2003 -- The Securities and Exchange Commission today filed securities fraud charges against Martha Stewart and her former stockbroker, Peter Bacanovic. The complaint, filed in federal court in Manhattan, alleges that Stewart committed illegal insider trading when she sold stock in a biopharmaceutical company, ImClone Systems, Inc., on Dec. 27, 2001, after receiving an unlawful tip from Bacanovic, at the time a broker with Merrill Lynch, Pierce, Fenner & Smith Incorporated. The Commission further alleges that Stewart and Bacanovic subsequently created an alibi for Stewart's ImClone sales and concealed important facts during SEC and criminal investigations into her trades. In a separate action, the United States Attorney for the Southern District of New York has obtained an indictment charging Stewart and Bacanovic criminally for their false statements concerning Stewart's ImClone trades. Stewart was sentenced to 5 months in prison and also settled a civil suit with the SEC by paying a $195,000 fine (a penalty that reflected four times the amount of stock value loss she avoided by taking advantage of inside information, plus interest). settled Stewart did engage in a dispute with the state of New York in 2002 over unpaid property taxes that she contended she didn't owe because she hardly spent any time in that state, and she was eventually ordered by a judge to pay $220,000 in back taxes plus penalties. But contrary to the false impression created by this meme, she was not prosecuted or jailed over that issue  the time she spent in prison was solely related to a later insider-trading case, not to tax evasion. dispute By the mid-1920s, notorious Chicago mobster Alphonse Gabriel Capone was reportedly taking in nearly $60 million annually ($878 million in 2018 dollars) from a variety of illegal activities, primarily Prohibition-era bootlegging. Capone was dubbed "Public Enemy No. 1" after the 1929 Saint Valentine's Day Massacre in which gunmen allegedly hired by him posed as police officers to murder seven members of a rival gang, leading to increased public pressure on the government to rein Capone in. Federal authorities had difficulty gathering sufficient hard evidence to convict Capone on any substantial criminal charges, however, so they took what was then a novel tack: Even if they couldn't prove Capone was making his millions illegally, they could prove he wasn't paying income tax on his ill-gotten gains. Despite his obviously lavish lifestyle, Capone never filed a federal income tax return and claimed he had no taxable income, reportedly boasting at one point that, They can't collect legal taxes from illegal money. He was proved wrong. IRS and Treasury agents gathered evidence that Capone had made millions of dollars in untaxed income, and the mobster was eventually indicted on 22 counts of federal income tax evasion. After conviction he was sentenced in 1931 to 11 years in prison, fined $50,000, and ordered to pay back taxes in the amount of $215,000. Capone was released from prison in 1939 with time off for good behavior and retired to Florida, where he died in 1947 at the relatively young age of 48. conviction In a literal sense Capone was indeed jailed for non-payment of income taxes, but the tax evasion charges were essentially a proxy for prosecuting the mobster over the multitude of vastly worse and violent crimes with which he was connected (and the immense profits he derived from those criminal activities). Capone was by no means an otherwise upright and law-abiding citizen who was thrown in prison simply because he didn't pay his income taxes. At this point in our narrative we need to distinguish between different forms of tax evasion. At one end of the spectrum are those who haven't engaged in any fraudulent behavior but simply didn't or can't pay their taxes for any number of reasons  maybe they didn't plan or withhold prudently, they received poor financial advisement, they had legitimate confusion or dispute over what constituted taxable income, or they simply overspent and ended up in debt. Although non-payment of taxes is a crime, the IRS will not usually seek prosecution in these types of case and will instead work with offenders in order to facilitate payment of their back debts (rather than making repayment difficult or impossible by incarcerating them). prosecution At the other end of the spectrum are those who actively engage in fraud in order to evade the full payment of taxes: They fail to disclose their full income, hide financial transactions, claim deductions to which they are not entitled, disguise monies earned as something other than income, or otherwise file falsified tax returns. The IRS will, at their discretion, seek prosecution in egregious cases of these forms of tax evasion. Leona Helmsley, derisively known by the nickname as the "Queen of Mean," was a billionaire who  along with her husband, real estate investor and broker Harry Helmsley  owned a vast portfolio of real estate and other assets, including a chain of hotels and the iconic Empire State Building. portfolio Leona Helmsley, who once reportedly asserted that We dont pay taxes. Only the little people pay taxes, fell into the latter class of tax evader, falsely manipulating her personal finances, business expenses, and dealings with third parties in order to avoid paying immense sums of taxes: tax evader Some of [Helmsley's] luster was tarnished in 1986 when court documents and law enforcement officials said she had failed to pay sales taxes in New York on hundreds of thousands of dollars of jewelry she purchased at Van Cleef & Arpels, the exclusive Manhattan store. Two senior store officers were indicted on charges that they operated a scheme by which customers with out-of-state addresses could have their purchases recorded as being mailed to them, thus avoiding city and state taxes. In 1987 a series of adverse articles in The New York Post about the Helmsleys, set off by one of their disgruntled employees, led to a broad investigation. The following year Harry and Leona Helmsley were indicted by federal and state authorities on charges that they had evaded more than $4 million in income taxes by fraudulently claiming as business expenses luxuries they purchased for Dunnellen Hall in Greenwich, Conn, a 28-room Jacobean mansion on 26 acres with a sweeping view of Long Island Sound that they bought in 1983. In 235 counts in state and federal indictments brought by Robert Abrams, then the New York State attorney general, and Rudolph W. Giuliani, then the United States attorney and later mayor of New York, the Helmsleys were accused of draining their hotel and real estate empire to provide themselves with such extravagances at Dunnellen Hall as a $1 million marble dance floor above a swimming pool, a $45,000 silver clock, a $210,000 mahogany card table, a $130,000 stereo system, and $500,000 worth of jade art objects. Nothing was too small or personal to be billed to their businesses, from Mrs. Helmsleys bras to a white lace and pink satin dress and jacket and a white chiffon skirt  the dress and skirt were entered in the Park Lane Hotel records as uniforms for the staff. Mrs. Helmsley was also charged with defrauding Helmsley stockholders by receiving $83,333 a month in secret consulting fees. She was convicted of 33 felony counts related to her evasion of $1.2 million in federal income taxes. She was sentenced to 16 years in prison (reduced to four years on appeal), fined $7.1 million for tax fraud, and ordered to pay some $1.7 million in back federal and state taxes. She began serving her sentence in 1992 and was released from federal prison in Connecticut in 1994 after having served less than half her sentence. Where along the tax-evader spectrum between "legitimate dispute" and "willful tax fraud" civil rights activist Al Sharpton might fall is a difficult to determine. Claims were made in the press in 2014 that Sharpton owed some $4.5 million in unpaid taxes, but the accuracy of that number and how much of the monies owed might already have been repaid by Sharpton were unclear, and his tax-troubles narrative involved a muddied mixture of personal, business, and non-profit finances as well liabilities for federal taxes, state taxes, payroll taxes, and personal income taxes. Much of the dispute over the "why" and "how much" of Sharpton's unpaid tax bill stemmed from the operations of the National Action Network, a not-for-profit, civil rights organization founded by Sharpton in 1991. Sharpton contended in a 2014 New York Times account that he incurred an unexpected tax liability because he was taxed personally for income he had given to the non-profit organization, and that he was up to date on repayment plans. Officials contested that the amount he was in arrears for in unpaid taxes had actually grown larger, though: contended Today, Mr. Sharpton still faces personal federal tax liens of more than $3 million, and state tax liens of $777,657, according to records. Mr. Sharpton said the federal liens resulted from a demand by the I.R.S. that he pay taxes on earnings from speaking engagements that he had turned over to National Action Network. He said he was up to date on payment plans for both the federal and state liens, so, he said, the outstanding balance was much lower than records showed. But according to state officials, his balance on the state liens is actually $220,000 greater now than when they were first filed during the years 2008 through 2010. A spokesman for the State Department of Taxation and Finance said state law did not allow him to provide any further details. Sharpton then contested that news account, asserting that it referenced "old taxes" and insisting again his tax liens had been paid down below the $4.5 million debt claimed in the New York Times report that stated Sharpton's unpaid tax debt had nonetheless grown larger, not smaller: contested During a news conference at the headquarters of his National Action Network in Harlem, Mr. Sharpton sought to refute the assertion that there were $4.5 million in state and federal tax liens outstanding against him and the for-profit businesses he controls. He said that the liens had been paid down, although he declined to say by how much, and that he was current on all taxes he was obligated to pay under settlement agreements with tax authorities. Were talking about old taxes, he said, adding: Were not talking about anything new. So all of this, as if Im not paying taxes while Im doing whatever Im doing, it reads all right, but it just is not true. The accuracy of Mr. Sharptons assertion that the amount he owes the federal government is much lower than the $3.6 million shown in records could not be verified. A spokesman for the Internal Revenue Service said federal law prohibited the agency from divulging any details about individual taxpayers. As for the state tax liens, Mr. Sharptons assertion that he had paid them down conflicts with information provided by state officials. State authorities filed tax liens against Mr. Sharpton in 2008 and 2009, and again in 2010 against a for-profit business he controls, Revals Communications, all totaling $695,000. But a spokesman for the State Department of Taxation and Finance said the amount due had actually increased, to $916,000. Regardless of the numbers, Sharpton wasn't put in prison because tax officials did not deem his case to be an exceptional one of scofflaw tax fraud or evasion that merited prosecution, instead working with him to facilitate his paying down the debt. The conclusion here is a simple one: Cherry-picking four very disparate cases of financial wrongdoings spanning several decades, while ignoring the many other instances of tax evasion successfully prosecuted by the U.S. government, documents nothing about any purported racial bias in such prosecutions. tax evasion Buettner, Russ.  "Al Sharpton Criticizes New York Times Report on Unpaid Taxes."
  The New York Times.  19 November 2014. Buettner, Russ.  "As Sharpton Rose, So Did His Unpaid Taxes."
  The New York Times.  18 November 2014. Nemyaug, Enid.  "Leona Helmsley, Hotel Queen, Dies at 87."
  The New York Times.  20 August 2007. Erb, Kelly Phillips.  "Al Capone Sentenced to Prison for Tax Evasion on This Day in 1931."
  Forbes.com.  17 October 2018. Wood, Robert W.  "10 Notorious Tax Cheats: Queen of Mean Leona Helmsley Proved Little People Can Put You in Jail."
  Forbes.com.  17 April 2015. Wood, Robert W.  "Lessons From Rev. Al Sharpton's $4.5 Million Tax Bill."
  Forbes.com.  19 November 2014. Department of Justice -- Office of Public Affairs.  "Tax Crime Does Not Pay."
  10 April 2018. Johnson, Carrie.  "Stewart to Pay $195,000 in Settlement of Civil Suit."
  The Washington Post.  8 August 2006. Kratsas, Gabrielle.  "13 Infamous Tax Cheaters."
  USA Today.  28 February 2014. A day after a Florida man landed a gyrocopter on the lawn of the U.S. Capitol to demand campaign finance reform, U.S. Rep. Alan Grayson talked up his own efforts to focus on small donations and his potential U.S. Senate bid. Grayson, an Orlando Democrat, told a reporter forDemocracy Nowon April 16 that he will probably run in a primary againstU.S. Rep. Patrick Murphy, D-Jupiter, for Marco Rubios Senate seat in 2016. As Democratic Party activists and leaders consider their best path to winning that seat, Grayson wants to remind them of his populist fundraising: Im the only member of the House of Representatives who raised most of his campaign funds in the last election from small contributions of less than $200, he said. We decided to check if Grayson holds a record in the House for contributions of less than $200. (A spokesman for Grayson told PolitiFact Florida that he is likely a few weeks away from making his decision but reiterated that he has said he willprobably run.) Counting small donations The Federal Election Commission considers donations of less than $200 as small donations, which dont have to be individually reported. Instead, candidates report a total amount of money from small donors. In the House for the 2013-14 election cycle, those who received the largest share of their campaign revenue from small contributions were Democrats -- andGraysonwas indeed No. 1, according to a November 2014analysisby the Center for Responsive Politics. Graysons small donations totaled about $1.8 million and equaled 57 percent of his $3.1 million donations. The House member who raised the next highest amount in small donations was FloridasDebbie Wasserman Schultz, D-Weston, and head of the Democratic National Committee. She raised $1.2 million in small donations, which equaled 47 percent of her contributions. (Wasserman Schultz recently ruled out running for Senate in 2016.) The third place House finisher wasU.S. Rep. Keith Ellisonof Minnesota who raised about $850,000 in small donations, or 41 percent of his pot. On theSenate sidefor the 2013-14 cycle, Democratic Sen. Al Franken of Minnesota topped the list with $11.7 million in small donations, equaling about 40 percent of his donations. (During his Democracy Now interview, Grayson mentioned U.S. Sen. Bernie Sanders of Vermont as a leader in the Senate in raising small donations. Sanders, an independent who caucuses with Democrats and was re-elected in 2012, raised almost $5 million in small donations, or about61 percent.) Who racks up small donations and why? So why are some member of Congress small donor leaders? In the case of Franken, a formerSaturday Night Livestar, the Center for Responsive Politics noted that name recognition in combination with hailing from a state with a strong grassroots tradition doesnt hurt. Graysons persona as a Democratic firebrand likely contributes to his fundraising abilities. The most successful small-money fundraisers mix media exposure with partisan taunting and ideological appeals,Adam Bonica, a Stanford political science professor, wrote in 2011. Graysonis famous for his provocative taunts against Republicans, such asdescribing the GOPhealth care plan as if you do get sick, die quickly, orcomparing Dick Cheney to a vampire. Michael J. Malbin, director of the Campaign Finance Institute and a political science professor at the University at Albany,saidpolarization alone wont get candidates a lot of money in small donations. In many cases, candidates are tapping into political organizations with an existing network of small donors. Grayson, for example, has received money bundled through ActBlue, an online Democratic fundraising group that focuses on competitive races. Candidates got their boost from national organizations that created support for the candidates by recommending them to donors who trusted the bundling organization(s) and who probably would not otherwise have known who the candidates were, Malbin wrote. Our ruling Grayson said, Im the only member of the House of Representatives who raised most of his campaign funds in the last election from small contributions of less than $200. Graysons small donations equaled 57 percent of his donations during the most recent cycle, putting him ahead of second-place finisher Wasserman Schultz at 47 percent, according to the Center for Responsive Politics. We rate this claim True. Scammers and malware purveyors are always looking for ways to entice online users into following web links that will lead those victims into the traps set for them, and offers of free products are prime bait in that pursuit of prey. One common method such predators use is establishing fake Facebook accounts mimicking those of well-known vendors of consumer products (typically of the edible variety, such as Starbucks, Taco Bell, McDonald's, KFC, Wendy's, Burger King, Whole Foods, Safeway, Food Lion, and Little Caesars) and posting bogus offers for "lifetime passes" or other dispensations of free product as part of a supposed company anniversary or birthday celebration (e.g., "Starbucks is giving away free lifetimes in celebration of the brand's 44th anniversary"). The primary type of free product fraud is the "sweepstakes scam," which is intended to lure victims into completing numerous surveys, disclosing a good deal of personal information, and then agreeing to sign up for costly, difficult-to-cancel "Reward Offers" hidden in the fine print. The scammers spread links via e-mail and Facebook that purport to offer free product to those who follow those links. These web pages (which are not operated or sponsored by the companies they reference) typically ask the unwary to click what appear to be Facebook "share" buttons and post comments to the scammer's site (which is really a ruse to dupe users into spreading the scam by sharing it with all of their Facebook friends). Those who follow such instructions are then led into a set of pages prompting them to input a fair amount of personal information (including name, age, address, and phone numbers), complete a lengthy series of surveys, and finally sign up (and commit to paying) for at least two "Reward Offers" (e.g., Netflix subscriptions, credit report monitoring services, prepaid credit cards): Pursuant to the Terms & Conditions, you are required to complete 2 of the Reward Offers from the above. You will need to meet all of the terms and conditions to qualify for the shipment of the reward. For credit card offers, you must activate your card by making a purchase, transferring a balance, or making a cash advance. For loan offers you must close and fund the loan. For home security and satellite tv offers you must have the product installed. You may not cancel your participation in more than a total of 2 Reward Offers within 30 days of any Reward Offer Sign-Up Date as outlined in the Terms & Conditions (the Cancellation Limit). Not only that, but the fine print on the "free" product offers typically states that by accepting its terms, the user agrees to receive telemarketing phone calls and text messages from a variety of different companies:   Similar phony free product lures are used to spread malware. In those versions of the scam, those who attempt to reach the URL provided for the purpose of claiming the free products are instead victimized by a Facebook "lifejacking" attack, a malicious script that takes over a user's Facebook profile without their knowledge and propagates itself to their friends' accounts as well. lifejacking In short, those who seek "free" merchandise generally end up paying a dear cost for it.