Did Biden promise to get rid of the 'Stepped-Up' Basis for Capital Gains Tax?
In early 2021, readers asked Snopes to examine the accuracy of a widely-shared social media post that purported to describe U.S. President Joe Biden's intention to eliminate a piece of tax law that allows taxpayers to benefit from selling on a home that is left to them by their parents. The post  which was critical of Biden and the supposed plan  first emerged during the 2020 presidential election campaign, but regained prominence after Biden was inaugurated in January 2021. It typically read as follows: first emerged regained Did you know Biden wants to get rid of something called "stepped up basis"? How does this affect you! When your parents pass and leave you the family house, normally you would inherit that property at what it is worth today. If you were to sell that house you would only pay taxes on the gain from what it is worth today and what it sells for. If Biden does away with "stepped up basis," you will inherit the property for what your parents paid for the property. If you decide to sell you will pay taxes on the difference between the original purchase price and what it sells for today. Here is what this looks like! Current PolicyInherited House at Current Value - $200,000Sells for $205,000Taxable income = $5000Taxes Due - 20% of $5000 = $1000Profit to you = $204,000Biden PolicyInherited House at original purchase price - $40,000Sells for $205,000Taxable income = $165,000Taxes Due - 20% of $165,000 = $33,000Profit to you = $172,000If your parents were to have sold this property prior to passing, they would have paid no taxes because it was their primary residence.So much for helping the middle class get ahead.My educated guess would be that at least 95% of Americans dont even know Biden has proposed this. We are talking tens of thousands of more tax dollars for the average sold after inheritance! Wow, google Biden stepped up basis and educate yourself because this is a biggie! Please share!   The viral post accurately stated that Biden proposed getting rid of the "stepped-up" basis for capital gains tax, and correctly explained the potential practical consequences for an individual taxpayer who inherits a home. In fact, the tax hit for wealthier individuals would be even greater than the post stated, because Biden has also proposed doubling the rate of long-term capital gains tax for those with income over $1 million. We are issuing a rating of  Here's how the nonpartisan Congressional Budget Office describes the stepped-up basis for capital gains tax, which is the tax due on profits from the sale of an asset, such as shares, a piece of property, and so on: describes When people sell an asset for more than the price for which they obtained it, they realize a net capital gain. The net gain is typically calculated as the sale price minus the assets adjusted basisgenerally the original purchase price adjusted for improvements or depreciation. To calculate the gains on inherited assets, taxpayers generally use the assets fair-market value at the time of the owners death, often referred to as stepped-up basis, instead of the adjusted basis derived from the assets value when the decedent initially acquired it. When the heir sells the asset, capital gains taxes are assessed only on the change in the assets value relative to the stepped-up basis. As a result, any appreciation in value that occurred while the decedent owned the asset is not included in taxable income and therefore is not subject to the capital gains tax. In 2015, then-President Barack Obama also proposed eliminating the stepped-up basis. Here's his administration's explanation of how it works: explanation ...Suppose an individual leaves stock worth $50 million to an heir, who immediately sells it. When purchased, the stock was worth $10 million, so the capital gain is $40 million. However, the heirs basis in the stock is stepped up to the $50 million gain when he inherited it  so no income tax is due on the sale, or ever due on the $40 million of gain. Each year, hundreds of billions in capital gains avoid tax as a result of stepped-up basis.  During the 2020 presidential election, Biden and his campaign repeatedly expressed his intention to get rid of the stepped-up basis. As first highlighted by Politifact, the Biden campaign presented the proposal as a partial way to pay for its proposed student loan reforms. In October 2019, ABC News reported that: Politifact ABC News The plan makes official several policies the former vice president often discusses on the trail about student debt as well. Bidens policy includes his plan for reducing student loan debt obligations for students who go into the public service sector, allowing $10,000 of undergrad or graduate debt relief per year for up to five years of service. Biden would also double the maximum amount of Pell grants available to students, including Dreamers, and would allow students making less than $25,000 a year to defer payments on their federal loans without accruing interest. Any student making more than $25,000 would pay 5% of their discretionary income toward their loans rather than the current 10% owed. The plan would be paid for through the elimination of the stepped-up basis loophole, a type of break on inheritance taxes, and capping itemized deductions for wealthy Americans at 28%, according to the campaign. In June 2020, according to CNBC, Biden told would-be donors: "Im going to get rid of the bulk of Trumps $2 trillion tax cut, and a lot of you may not like that but Im going to close loopholes like capital gains and stepped-up basis. CNBC On the Biden-Harris campaign's website, a Spanish-language document outlining the campaign's plans for education reforms stated (translated): document The Biden plan for post-secondary education is a $750 billion investment over 10 years, aimed at developing a stronger and more inclusive middle class. It will be paid for by ensuring the super-rich pay their fair share. Specifically, this plan will be paid for by eliminating the gap in our tax law known as the "Stepped-up Basis Loophole" as well as reducing the itemized deductions that the richest Americans can make to 28 %. [Emphasis is added]. Elsewhere, the Biden campaign proposed not only getting rid of the stepped-up basis, but also doubling the tax rate for long-term capital gains  that is, profits from the sale of an asset that you owned for more than one year  for relatively wealthy taxpayers. Here's what the Biden-Harris campaign website stated, as part of the campaign's healthcare plan: long-term stated As President, Biden will make health care a right by getting rid of capital gains tax loopholes for the super wealthy. Today, the very wealthy pay a tax rate of just 20% on long-term capital gains... As President, Biden will roll back the Trump rate cut for the very wealthy and restore the 39.6% top rate he helped restore when he negotiated an end to the Bush tax cuts for the wealthy in 2012. Bidens capital gains reform will close the loopholes that allow the super wealthy to avoid taxes on capital gains altogether. Biden will assure those making over $1 million will pay the top rate on capital gains, doubling the capital gains tax rate on the super wealthy. The Facebook post shared widely in late 2020 and early 2021 accurately described Biden's stated intention to get rid of the stepped-up basis for capital gains tax, a move that would indeed increase the tax burden on a notional individual who inherits a piece of property from their parents, before selling it on. The tax hit for wealthier taxpayers would be even greater than the Facebook post outlined, since Biden has also proposed increasing the rate of long-term capital gains tax for those with an income above $1 million. The Facebook post did not mention that Biden had stipulated he would use the money raised from eliminating the stepped-up basis to help pay for his healthcare and education plans. We are issuing a rating of  Snopes contacted the White House to ask whether the Biden administration still intended to push for the elimination of the stepped-up basis, but we did not receive a response in time for publication.
Rep. Abigail Spanberger sits in a yard with her parents during aTV ad, talking about the lessons they imparted. Growing up, my parents taught me, Correct whats wrong, maintain whats right, the Virginia Democrat says. Then, Spanberger addresses something shes trying to correct: Corporate donations to political campaigns. When I ran for Congress, I promised to refuse money from corporate PACs, she says. Ive kept that promise. Spanberger is seeking a second term this fall in one of the nations most closely watched House races. Shes opposed by Republican state Del. Nick Freitas in Virginias 7th District which, prior to Spanbergers election in 2018, had a long history of voting Republican. The National Republican Campaign CommitteesaysSpanberger islyingin her ad and accepting backdoor corporate contributions. So we fact-checked Spanbergers claim that shes spurned corporate PAC contributions, and found it needs elaboration. According to herlatest filingswith the Federal Election Commission, Spanberger has raised $4.2 million in contributions since the start of 2019 through the end of June 2020. We found no money that came directly from corporations. But the NRCC has a small point. While Spanberger refuses direct corporate donations, she accepts contributions from PACs that do take corporate contributions. In other words, she receives a small amount of corporate PAC money that has been filtered. A corporate PAC is affiliated with a specific company that gathers donations from its employees and distributes it to politicians and political interest groups. Corporate funds cannot be contributed to the PAC. There are two main conduits that receive corporate PAC money and pass it on. One of the pipelines is formed by leadership PACs, which are set up bymostmembers of Congress to help candidates from their party. For example, Spanberger has received a maximum $10,000 from the Forward Together PAC, associated with Sen. Mark Warner, D-Va. Forward Together hasaccepted contributionsfrom a list of corporations, including Merck, Citigroup, Honeywell, Lockheed Martin, General Electric and Altria. We counted 60 leadership PACs that have contributed to Spanbergers campaign. The second conduit is formed by ideological PACs, which are established by groups focusing on special causes, such as regulation, defense or health care. Spanberger hasreceived $651,000from PACs since the start of 2019. About $111,000 of that money filtered down from corporate PACs, according to the Center for Responsive Politics - a Washington nonprofit that tracks political money. The Center made its estimate by converting the percentage of money each Spanberger PAC donor received from corporations to a fraction of money it gave to her campaign. Perspective As weve said, Spanberger has raised $4.2 million since 2019 began. The $111,000 that trickled in from corporations is 2.6% of all contributions to her campaign. Sixty members of Congress - including three Republicans - have promised not to accept corporate money, according to End Citizens United, a Washington nonprofit seeking to tighten campaign finance laws. Rep. Elaine Luria, D-2nd, is the only other Virginia congress member to make the pledge. Campaign finance advocates told us theyre unaware of any incumbent who is declining both corporate and leadership PAC money. End Citizens United has endorsed Spanberger largely because of her no-corporate-money pledge and is not upset by her acceptance of leadership PAC money, according to Adam Bozzi, spokesman for the organization. Michael Beckel, research director for Issue One, another Washington non-profit seeking campaign finance reform, also told us Spanberger has been consistent. Bozzi and Beckel said direct contributions often give corporations access to politicians. They said office holders are far less likely to feel beholden to a corporation when its money has been filtered through a leadership PAC. If anything, the candidate may feel indebted to the politician whose leadership PAC contributed to his or her campaign, Beckel said. Spanberger has kept her promise to voters, Bozzi said. Sarah Bryner, research director for the Center for Responsive Politics, said its become vogue for Democrats to decline corporate PAC money, but voters should be aware. Candidates trying to remove themselves are putting themselves in an awkward position because to completely shut themselves off from corporate donations right now is impossible, she said. ...If you need money to run a political campaign, unless youre independently wealthy, youre getting money from people. And most people work for corporations. Bettina Weiss, Spanbergers campaign manager, said, Abigail does not take corporate PAC money. Full stop. She accused Republicans of waging a farcical attack on Spanbergers fundraising. Weiss noted that Spanberger cosponsored theFor the People Act of 2019, a comprehensive voting rights, campaign finance and ethics bill aimed at reducing corporate influence on Congress. The measure, with236 cosponsors, passed the House and has stalled in the Senate. A final note:PolitiFact state bureaus have recently fact-checkedtwosimilarclaims by politicians who said they have rejected corporate PAC money, but didnt factor in leadership PAC money. Both claims were rated Mostly True. Our Ruling Spanberger says shes kept her promise to refuse corporate PAC donations. Shes raised $4.2 million - none directly from corporations, although an estimated $111,000 of corporate money has come in indirectly through other PAC contributions. Thats less than 2.6% of her campaigns take, but it counts. Realizing that it may be impossible to block all traces of corporate money from a successful congressional campaign, we rate Spanbergers statement Mostly True. A law professor running against U.S. Rep. Debbie Wasserman Schultz of South Florida says she is in the pocket of big banks and isnt looking out for consumers who get crushed by debt from payday loans. My opponent, after taking hundreds of thousands of dollars from Goldman Sachs and other Wall Street banks, has voted to prevent the Consumer Financial Protection Bureau (CFTP) from regulating payday loans and addressing racial discrimination in car loans, said Tim Canova on hiswebsite. Canova, a first-time candidate and professor at Nova Southeastern University, is challenging Wasserman Schultz in the August Democratic primary in a Broward/Miami-Dade district. The race has drawn national attention because Wasserman Schultz is the Democratic National Committee chair. Did Canova accurately describe her donations from banks and her votes related to payday loans and car loans? There is some truth to his attack, but each one requires explanation. Donations from Wall Street banks Canovas campaign pointed to donations from banks, securities/investment firms and finance/credit companies to Wasserman Schultzs campaign committee and her political action committee, or PAC. At PolitiFact Floridas request, the Center for Responsive Politics compiled the large individual donations (more than $200) and donations to her PAC starting with her 2006 election. The center found she received $309,020 from commercial banks, which represented about 2 percent of the total; $408,450 from securities/investment firms, and $325,850 from finance/credit companies. Her leadership PAC, Democrats Win Seats, received donations from the Goldman Sachs PAC:$5,000 in 2016and$10,000in 2014. Wasserman Schultz spokesman Sean Bartlett pointed to donations only to her campaign and plucked out what he said were the big bank donations. That totaled $15,400, including $4,000 from Goldman Sachs. But the Center for Responsive Politics shows a longer list of bank donations even if we only examine her campaign committee. It shows$171,303 for commercial bankindustry donations. Payday loan bill Payday loans are small, short-term loans that borrowers promise to repay out of their next paycheck at ahigh rateof interest. It is a controversial industry that targets the poor and is disproportionately located in minority communities. For years, payday loans were unregulated by the federal government, although some states had their own laws. President Barack Obama took a step toward regulating the industry when he signed a bill in 2010 that included the creation of the Consumer Financial Protection Bureau. Republicans have targeted the bureau for years. Enter some Democrats into the fray -- including Wasserman Schultz, who has gotten about $68,000 from payday lenders, according to the Center for Responsive Politics. Wasserman Schultz is among Florida lawmakers who have defended Floridas payday law despite the fact that some consumer advocates have bashed it and say it traps the poor in a debt cycle. Wasserman Schultzs position is to give precedence to the state law, her spokesman said. On the federal level, the bureau released anoutline of payday loan rulesin March 2015 and is expected to announce a more complete proposal within the next several months. Congress doesnt have to approve it but can introduce legislation to kill it. All but one member of Floridas congressional delegation (Tom Rooney) signed aletterin April 2015 pushing back against the proposed rules. Instead, they want the bureau to look at Floridas law as a model. That led U.S. Rep. Dennis Ross, a Florida Republican, to file the Consumer Protection and Choice Act,H.R. 4018in November. Half of the 24 cosponsors are from Florida, including Wasserman Schultz, and nine of the cosponsors are Democrats. Canovas website said Wasserman Schultz voted on the bill, but it was only referred to a committee without a vote. (After we pointed that out to Canova senior adviser Richard Bell, the campaign changed the website to say co-sponsored instead of voted.) The bill states that if the bureau determines that a states law meets the federal requirements, then only state law will apply. It would also delay federal regulations for two years, which would allow states to come up with their own laws. More than 200 consumer or civil rights groups -- including the NAACP, National Council of La Raza, Southern Poverty Law Center and the Consumer Federation of America -- wrote aletterto Congress urging them to defeat the bill. They argued that the bill favors an industry-backed Florida law and would hurt consumers. Floridas 2001 payday loan law was a compromise and included protections that were intended to help the poor avoid an endless cycle of debt. But the loans leave consumers stuck on a debt treadmill in Florida, where they have racked up $2.5 billion in fees since 2005, according to the Center for Responsible Lendings Marchreport. In the past year, the average Florida payday loan had an annual rate of 278 percent. Richard Cordray, head of the Consumer Financial Protection Bureau, disputed Ross description of Floridas law as the gold standard during a congressional hearing on March 16. In Florida, these loans are still being made above the 300 percent, and they are being rolled over on average nine times, Cordraysaid. Bartlett argued that Wasserman Schultz has fought against abusive payday lending practices and pointed to her vote on a separate bill in 2015. She voted against HR 766, the Financial Institution Customer Protection Act, which opponents argued would have prevented the Justice Department from going after the financial industry. Racial discrimination in car loans Canova also said Wasserman Schultz prevented action to stop racial discrimination for car loans. This part of Canovas attack relates to a2013 bulletinfrom the Consumer Financial Protection Bureau, which recommended steps for auto lenders to avoid discrimination. The bulletin was intended to provide clarity about existing law. But theHouse of Representativespushed back against the bureau by passing a bill to nullify the bulletin. The bill passed the House 332-96 in November 2015 and hasnt had a vote in the Senate. Wasserman Schultz was one of 88 Democrats who voted in favor of it, while 96 Democrats opposed it. Proponentsof the bill -- including auto dealers -- said the bureaus efforts would increase costs for consumers. Groups that representedminoritieswanted the new guidelines. This legislation in no way prevented the CFPB from addressing racial discrimination in car loans, and the congresswoman does not support that as a policy position, her spokesman said. The bill hasnt been acted on, and discrimination investigations can continue. A few months after the House vote,Toyotaagreed to a $21.9 million settlement to black and Asian buyers. Our ruling Canova says Wasserman Schultz after taking hundreds of thousands of dollars from Goldman Sachs and other Wall Street banks, has voted to prevent the Consumer Financial Protection Bureau from regulating payday loans and addressing racial discrimination in car loans. Her campaign committee and PAC have taken $309,020 from commercial banks since her re-election campaign in 2006 -- about 2 percent of the total. That includes $15,000 in donations from Goldman Sachs to her leadership PAC. The payday loan bill hasnt had a vote in the House yet, although Wasserman Schultz is a co-sponsor. The bill would not prevent the bureau from regulating payday loans entirely, but it would cede power to the states, including Florida, which has its own payday law that some advocates have criticized as weak. She voted for a bill that squashed bureau guidelines that were intended to provide clarity about the law on racial discrimination related to car loans. We rate this claim Mostly True. On his first day in office, President Joe Biden put the final nail in the coffin of the Keystone XL pipeline when he revoked its construction permitvia an executive order. Several months later in June 2021, TC Energy Corporationannounced the terminationof the project, bringing an end to more than a decade of debate and legislative back-and-forth on it. The Keystone XL pipeline would have been an extension to the Keystone pipeline, an already existing structure that brings tar sands oil from Alberta, Canada to storage and distribution facilities in Cushing, Oklahoma and eventually to refineries in Texas. The extension would have boosted this by carrying an additional 830,000 barrels per day from Alberta to Steele City, Nebraska. Environmental activists, Indigenous communities and climate change experts hailed Bidens decision to cancel the pipeline, which could have damaged sacred sites, caused pollution and water contamination, imperiled wildlife and dramatically contributed to carbon emissions. But the decision was criticized heavily by many Republicans, includingU.S. Sen. Ron Johnson of Wisconsin,former Vice President Mike Penceand  most recently  Wisconsin gubernatorial candidate Tim Michels, who had a personal stake in it all. On June 23, 2022, Michelstweeted: My company was building the Keystone Pipeline when Biden canceled it. Both he and Tony Evers are making us all pay the price. I'll stand by Wisconsinites and ensure you keep more of your hard-earned dollars as your next governor. He made another claim in a video posted with the tweet: Biden killed hundreds of jobs, sent gas prices way up, making everything more expensive. We rated thatMostly False. Michels is the co-owner of Michels Corporation, an energy and infrastructure contractor headquartered in Brownsville, Wisconsin, with locations across the United States and Canada Was Michels Corp. building the Keystone XL pipeline when Biden canceled it? In an email to PolitiFact Wisconsin, TC Energy confirmed that Michels Corp. had been awarded a significant construction scope on the Keystone XL pipeline for both the pipeline and facilities. Michels Corp. provided more details in an email: Michels Pipeline, a Division of Michels Corporation, received a contract related to the Keystone XL pipeline to construct pumping stations. Michels Canada Co. received another contract in Canada to help build the mainline pipeline of the Keystone XL pipeline. According to apost on Michels Corp.'s websitefrom September 2020, Michels Corp. was awarded a contract from TC Energy to construct eight pump stations for the pipeline in Montana, South Dakota, Oklahoma and Texas. Pump stations are facilities along a pipeline that maintain the flow and pressure of oil as it's being transported. They were one type of ancillary facility required for the Keystone XL project, which would have traversed through Montana, South Dakota and Nebraska. Oklahoma and Texas, however, are part of the existing Keystone pipeline structure, so some of the pump stations Michels Corp. was constructing may not have been for the Keystone XL pipeline. The post said that construction on the eight pump stations started in late June 2020 and was scheduled for completion in the first quarter of 2021. It also said the company would employ more than 350 workers at peak construction. According to a June 2020post on Michels Canadas website, Michels Canada was awarded a contract from TC Energy to construct approximately 260 kilometers (about 162 miles) of the pipeline in Alberta. ATC Energy fact sheetabout the Canadian portion of the pipeline said it would be approximately 530 kilometers (about 329 miles) from Hardisty, Alberta, to Monchy, Saskatchewan. So Michels Canada would have constructed about half of the Canadian portion of the pipeline. The full pipeline was to run around 1,200 miles. So, Michels company was clearly a significant part of building the pipeline, but as stated readers might think it was the primary  or even sole  contractor. The post said that Michels Canada was projected to hire 1,000 workers each year of the two-year construction period, which was scheduled to begin the summer of 2020 near Oyen, Alberta, and finish in the spring of 2022 near Hardisty, Alberta. At the time Biden canceled the permit for the pipeline, on Jan. 20, 2021, Michels Corp.s construction of eight pump stations in the U.S. was likely nearing completion. Michels Canadas construction of its segment of the pipelines Canadian portion was likely about one-third complete. According to Reuters, only about 8% of the planned Keystone XL pipeline had been built by the time President Biden canceled the permit. In a tweet, Michels claimed his company was building the Keystone Pipeline when Biden canceled it. The way it was stated could leave readers thinking his company was fully responsible for the pipeline. And some of the pump stations his campaign and company cited apparently are tied to the existing portion of the pipeline. So, there is a lack of precision there. But Michels is right that his company had a significant role in the pipeline project. We rate the claim Mostly True. The M-16, a rapid-fire, 5.56 mm assault rifle carried by thousands of American soldiers during the Vietnam War, grew out of efforts to develop a replacement for the standard M-1 Carbine used during World War II. The M-16 (originally designed by Eugene Stoner of Armalite as the AR-15) was constructed using plastics and alloys and was a much smaller and lighter weapon than its predecessors, one that fit in with the developing Vietnam-era strategy of less emphasis on long-range accuracy in favor of more easily-carried weapons with rapid rates of fire. M-16, Hundreds of thousands of M-16s were supplied to U.S. troops in the mid-1960s as US Army made the M-16 their standard rifle: Example:  [Morgan and Tucker, 1987] The handgrip of the M16 rifle was made by Mattel. When the gun was first introduced in Vietnam, soldiers noticed the toy company's logo embossed on the handgrip and complained. Later shipments arrived without the imprint, but the grips were still manufactured by Mattel. However, the M-16, manufactured by the Colt Firearms Corporation (who bought the rights from Armalite in 1959), soon developed a reputation for unreliability, frequently jamming and fouling (especially when not kept clean, a next-to-impossible task in the dust and mud of Vietnam battlefields). Problems with the M-16 eventually achieved such prominence that a congressional inquiry was ordered, resulting in design changes, additional troop training, and other modifications that ameliorated many of the reliability issues U.S. troops were experiencing with the weapon: Since the mid-1960s, when at Gen. William C. Westmorelands request an earlier version of the M-16 became the primary American rifle in Vietnam, the reputation of the M-16 family has been checkered. This is in part because the rifle had a painfully flawed roll-out. Beginning intensely in 1966, soldiers and Marines complained of the weapons terrifying tendency to jam mid-fight. Whats more, the jamming was often one of the worst sorts: a phenomenon known as failure to extract, which meant that a spent cartridge case remained lodged in the chamber after a bullet flew out the muzzle. The only sure way to dislodge the case was to push a metal rod down the muzzle and pop it out. The modern American assault rifle, in other words, often resembled a single-shot musket. One Army record, classified at the time but available in archives now, showed that 80 percent of 1,585 troops queried in 1967 had experienced a stoppage while firing. The Army, meanwhile, publicly insisted that the weapon was the best rifle available for fighting in Vietnam. The problems were so extensive that in 1967 a Congressional subcommittee investigated, and issued a blistering rebuke to the Army for, among other things, failing to ensure the weapon and its ammunition worked well together, for failing to train troops on the new weapon, and for neglecting to issue enough cleaning equipment  including the cleaning rod essential for clearing jammed rifles. A series of technical changes sharply reduced (but never eliminated) the incidence of problems. Intensive weapons-cleaning training helped, too. To the troops in the field, the original M-16 was new, it was small, it was light, it was made of plastic rather than wood, and it often performed poorly to boot. It was no surprise that many of them started expressing their dissatisfaction by referring to it derisively as a cheaply-made "toy," and that they associated it with the most prominent toy company of the time: Mattel, the Hawthorne, California, toy manufacturer famous for introducing the Barbie doll to the world: Mattel One of the sayings soldiers had about the M16 was, "You can tell it's Mattel" which was a toy company's slogan at the time  the gun had a lot of plastic parts, which can't stand up to the vibrations like wood can but it is cheap. The Mattel legend was undoubtedly fed by the fact that Mattel really did sell an  M-16 Marauder toy gun in the mid-1960s, a quite good reproduction of the actual weapon, complete with "realistic" sound effects:  M-16 Marauder     The sardonic joke about problem-plagued M-16s being toys morphed into a legend about their really having been produced by a toy company, with "proof" offered in the additional detail of soldier's spotting M-16 handgrips embossed with the Mattel logo. The redesign that improved the M-16's reliability was then attributed to a switch in manufacturers (to a "real" gun company) prompted by soldier complaints. Chivers, C.J. "How Reliable Is the M-16 Rifle?"
The New York Times. 2 November 2009. Morgan, Hal and Tucker, Kerry. More Rumor!
New York: Penguin Books, 1987. ISBN 0-14-009720-1 (pp. 175-176). On Jan. 9, 2020, U.S. President Donald Trump posted a tweet, written partially in all-capital letters, asking people how their "409K'S" are doing, and although he deleted the tweet and re-posted it without the "409K" reference, the errant tweet was captured by at least two archiving services.Trump then deleted that tweet and posted a new tweet, substituting in the correct reference, "401K." A 401(k) is a retirement-savings benefit offered to employees by some companies. Funds are generally automatically deducted from paychecks and deposited into an account that is tied to stocks. Therefore the performance of 401(k) accounts are linked to the highs and lows of the stock market. archiving services  new tweet  Many Americans, however, do not have access to this benefit, as it is dependent on their employer. Regardless of whether they have one, most Americans do not have enough money saved for retirement, according to economic data. do not most U.S. stocks have been experiencing a record bull market for roughly a decade, which Trump generally claims credit for, although it started under his predecessor, Barack Obama. record started Elkins, Kathleen."Only Half of Americans Have Access to a 401(k)  Heres How to Save for Retirement If You Dont."
CNBC.18 March 2019. Chang, Sue."Welcome To the Longest Bull Market in Wall Street History."
CNBC.22 August 2018. Chang, Sue. "The Dows Tumultuous History, in One Chart."
MarketWatch. 3 February 2018. Martin, Emmie."Heres How Many Americans Have Nothing Saved for Retirement."
CNBC.28 June 2019. As U.S. President-elect Donald Trump prepared to take office in December 2016, multiple news reports addressed the potential conflicts of interest he would face as he transitioned from a businessman to chief executive. Many critics urged Trump to divest himself of his businesses and cited former U.S. President Jimmy Carter's sale of his peanut farm as an exemplary model of how to head off such potential conflicts: conflicts of interest         In May 2020, after an appeals court ruled that a lawsuit could proceed alleging that Trump had violated the constitution by receiving foreign money through his hotels, comparisons between Carter and Trump once again gained traction on social media: court ruled that a lawsuit social media   While Carter did place his businesses into a blind trust before he was elected president in 1977, he didn't actually sell his peanut farm until he left office in 1981.  On Jan. 5, 1977, Carter released a plan detailing how his assets would be handled when he assumed office. Carter listed eight actions that he would take to avoid conflicts of interest, including transferring Carter's Warehouse, Carter Farms, and all funds related to those business ventures into a trust: released listed The transition group has studied existing laws and regulations bearing on conflicts of interest and the regulation of ethics of officials in the executive branch of government. The existing law is extremely strong in prohibiting outside earned income. Governor Carter heavily approves of that law and its policy ... In order to prevent possible financial conflicts of interest while President, Governor Jimmy Carter is taking the following actions: 1. All common stock is being sold, consisting of 100 shares of Rich's, Inc. and 956 shares of Advanced Investors. A small net loss on this stock is likely. 2. Jimmy Carter's interest in (a) Carter's Warehouse and Carter Farms, Inc., and any funds related to them (b) all property except the private home and personal items, and (c) his father's estate will be transferred to a trust. Income or principal from the trust will be available to Jimmy Carter but only as distributions of cash. Carter's business suffered significantly while he served as president, but it wasn't until he left office in 1981 that the decision was made to sell the family farm: suffered While he serves as president, Jimmy Carter placed the family farm supply business into the protection of a blind trust before he left for Washington, D.C. in 1977. This trust allowed for a law firm in Atlanta to take full administration of the farm supply business during his years in the White House. The Carters felt that relinquishing the business to someone elses care would separate them from these affairs and avoid the possibility of their financial holdings resembling any conflict of interest while President Carter was in office. Their personal counsel, Charles Kirbo of the Atlanta law firm, was their financial trustee. Following the election loss in 1981, the Carters were informed by Charles Kirbo that because of three years of drought and several changes in warehouse management, they were over $1 million in debt. As they struggled to recover from the unexpected financial blow, the solution to their problem became evident. The Carters sold the family business and also began writing books, which helped them recover financially. In regards to a meme's claim that Carter was still building houses at the age of 92, that is, for the most part, true. Carter has been building houses with Habitat for Humanity since 1984. At the age of 92, he was still actively participating in the construction of new homes. The above-displayed meme is a few years old, however, as Carter is 95 years old at the time of this writing in May 2020.  If the text of this meme was altered to give Carter's current age, it would still be true. In October 2019, shortly after suffering a fall at his home that required stitches, Carter was back on the construction site. A Habitat for Humanitys Jimmy & Rosalynn Carter Work Project has also been announced in the Dominican Republic for November 2020, but it's unclear if Carter will travel to the country to take part in the construction: back on the construction site announced Since beginning their work with Habitat for Humanity in 1984, President and Mrs. Carter have helped to build, renovate and repair 4,390 homes in 14 countries alongside more than 104,000 volunteers through their annual work project. Since its founding in 1976, Habitat has served more than 22 million people around the world. We are honored to host the 2020 Jimmy & Rosalynn Carter Work Project in the Dominican Republic, said Cesarina Fabin, national director of Habitat for Humanity Dominican Republic. President and Mrs. Carter are shining examples of service. We are so grateful to their commitment to building a world where everyone has a safe and decent place to live. In summary, Carter placed his peanut farm into a blind trust when he took office in 1977. It wasn't until he left office four years later that the farm was sold. With that in mind, we rate this claim "Mixture." Gerstein, Josh.  "Appeals court Greenlights Emoluments Suit Against Trump."
  Politico.  14 May 2020. Folley, Aris.  "Jimmy Carter Back to Building Homes for Habitat for Humanity One Day After Fall."
  The Hill.  7 October 2019. The New York Times.  "Texts of Carter Statement on Conflicts of Interest and Ethics; Appointees Guidelines."
  5 January 1977. Buchanan, Larry.  "The Array of Conflicts of Interest Facing the Trump Presidency."
  The New York Times.  14 December 2016. 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. Claim:  Destructive act is conveniently blamed on household pet. LEGEND Examples:  [Brunvand, 1993] Their mother had baked a Dutch apple pie for a special event. She left it on the kitchen table to cool while she ran an errand, warning the boys not to touch it. But the pie smelled wonderful, and the boys couldn't resist a tiny bite. One bite became several, until a major chunk of the pie had been eaten. They then heard their mother's car pull into the garage, and they knew they were trapped unless they could quickly cover up their crime. The future lawyer got a brilliant idea. He grabbed the family cat and shoved its face into the pie, smearing its whiskers with gooey filling and crumbs. His mother walked in, looked at the cat, and saw what she interpreted as guilt written all over its face. She immediately grabbed the cat and threw it out the back door into a stream that ran behind the house.  [Brunvand, 1989] I recently heard about a friend of a friend  what you call a  FOAF  who is an interior decorator with a thriving business on Chicago's wealthy North Shore.  He had just finished painting an elegant home in Wilmette, and was going around with a can of touch-up paint, making sure everything was perfect. He finished the last brush stroke, stepped back to admire his work, and kicked the paint can over onto the priceless Oriental rug.  What to do? At that moment, the client's yappy, snappy, obnoxious toy poodle, Fifi, trotted into the room.  Thinking quickly, the decorator scooped her up and dropped her into the puddle of paint, at the same time exclaiming loudly, "Fifi! Bad Dog! What have you done?"  [Collected on the Internet, 2002] A husband breaks a purple vase that belongs to his wife. she thinks the dog did it and she hates the dog. In her husband's absence she kills the dog and buries it in the back yard. the story ends with the husband confessing that in fact he and not the dog broke the vase, and the wife, who is contemplating the mound behind the rose bushes in the garden doesn't know what to say. Origins:  Shoving    a hapless pet into the incriminating mess is a traditional way of shifting blame. One of Brunvand's readers recalls hearing the spilled paint story in 1929, so this one has been with us for a while. Although pets can (and have!) spilled cans of paint, it's not reasonable to assume any self-respecting cat would have an interest in Dutch apple pie. A more believable way of presenting the story would be to change the food item into a tortire, a renowned French-Canadian meat pie. (Though tortire is good eating any time, it's a traditional Christmas Eve food in Quebecois households, often served at "Le Reveillion," the meal following Midnight Mass.) Another legend, one about kinky teen sex, employs the scapegoated pet theme. In "Stain Feign," teenagers who've decided to engage in anal sex on the family's brand new white sofa afterwards rush out to buy a puppy to have something to blame the mess on. Stain Feign Barbara "canine one one" Mikkelson Sightings:  Our "blamed pet" legend shows up in a 1972 Toni Morrison novel, Bluest Eye, in a scene involving two children, a cat, and a berry cobbler. Last updated:  1 August 2011 The Baby Train    Brunvand, Jan Harold.  Curses! Broiled Again!   New York: W. W. Norton, 1989.   ISBN 0-393-30711-5   (pp. 132-134). Curses! Broiled Again!    Brunvand, Jan Harold.  Too Good to Be .  New York: W. W. Norton, 1999.   ISBN 0-393-04734-2  (pp. 61-63). Too Good to Be  The Big Book of Urban Legends As we've noted many times in these pages, one common way in which people attempt to demonstrate the aptness of a particular social or political viewpoint is to put its expression into the mouth of a revered historical figure.  [Collected via e-mail, April 2008] This quote is going around the internet. I would like to know if it really came from Cicero as claimed. "The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt. People must again learn to work, instead of living on public assistance."  Cicero, 55 BC Surely if one of great minds of our civilization, someone who lived hundreds (or even thousands) of years ago, said the very same thing we're thinking today, then surely that's proof we've hit upon some eternal truth that should be sagaciously heeded. In short, attributing apocryphal quotations to everyone from Confucius to Abraham Lincoln is an attempt to capitalize on the maxim that "great minds think alike." One prime representative of this phenomenon is the passage reproduced above, which warns about the perils of governments' overspending their budgets and lavishing too much money on foreign aid and welfare programs. For the last half century it has been attributed to Roman philosopher and statesman Marcus Tullius Cicero and widely quoted by politicians and pundits seeking to bolster their arguments in favor of fiscal conservatism. For example, Louisiana representative Otto Passman, who for thirty years "pursued a relentless battle against spending for foreign aid" in the U.S. Congress, read these words into the Congressional Record on April 25, 1968: read these words into the Congressional Record Mr. Speaker, the record shows that in all ages where republican forms of government have been lost, it has been through the pretense of a share-the-wealth program, a blind faith in public officials, and apathy on the part of those who could act but did not. To mention only one of many, many examples from past history, may I quote from a statement made by Cicero over 2,000 years ago: The budget should be balanced, the treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt, the mobs should be forced to work and not depend on government for subsistence. History reveals that public officials heeded not the warning  therefore, the government collapsed. On March 29, 1971 the Chicago Tribune published a letter from a reader who invoked the same words to make a similar point: Someone said years ago: "The more things change, the more they are the same." Today's problems are not new. The Roman Empire faced bankruptcy 2,000 years ago, as more and more power was concentrated in central government and government spending grew. Cicero spoke out against the trend. This great Roman senator said: "The budget should be balanced, the treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, assistance to foreign lands should be curtailed lest Rome become bankrupt. The mobs should be forced to work and not depend on government for subsistence." Romans ignored Cicero; Rome fell. History is great if we learn from it. It is not too late for the United States to heed those words out of the past. Those words were never uttered by Cicero, however; and the reason no one ever quoted them as such until about fifty years ago is because they weren't written until 1965. They sprang from the pen of Taylor Caldwell, a fiction writer best known for historical novels such as Captains and the Kings, her 1972 best-selling chronicle of the rise to wealth and power of an Irish immigrant named Joseph Francis Xavier Armagh (which was also made into a popular television mini-series in 1976). popular television mini-series Caldwell penned several novels based on real-life religious and historical figures, including Genghis Khan (The Earth Is the Lord's), Cardinal Richelieu (The Arm and the Darkness), Saint Luke (Dear and Glorious Physician), Saint Paul (Great Lion of God), Aspasia (Glory and the Lightning), and Judas Iscariot (I, Judas). Her 1965 effort A Pillar of Iron was a historical novel about the life of Cicero, the great Roman statesman who "is a pillar of iron as he publicly maintains his search for honor and justice under law in the face of plots against his life and his country." Although A Pillar of Iron often drew directly from the recorded speeches and letters of Cicero for its dialogue, it was nonetheless a work of fiction, and the now famous statement from Cicero about "balancing the budget" was an invention of Caldwell's and not a reproduction of Cicero's own words. In fact, the novel doesn't even present these words as something spoken by Cicero, but rather as a summation of Cicero's political philosophy presented as a preface to an imagined conversation between Cicero and Gaius Antonius Hybrida: Reared in republican virtues, Cicero found himself frequently confounded by Antonius. Antonius heartily agreed with him that the budget should be balanced, that the Treasury should be refilled, that public debt should be reduced, that the arrogance of the generals should be tempered and controlled, that assistance to foreign lands should be curtailed lest Rome become bankrupt, that the mobs should be forced to work and not depend on the government for subsistence, and that prudence and frugality should be put into practice as soon as possible. But when Cicero produced facts and figures how all these things must and should be accomplished, by austerity and discipline and commonsense, Antonius became troubled. "But this  or that  would bring hardship on this  or that  class," Antonius said. "The people are accustomed to lavish displays in the circuses and the theaters, and the lotteries, and free grain and beans and beef when they are destitute, and shelter when they are homeless and a part of the city is rebuilt. Is not the welfare of our people paramount?" "There will be no welfare of the people if we become bankrupt," said Cicero, grimly. "We can become solvent again, and strong, only by self-denial and by spending as little as possible until the public debt is paid and the Treasury refilled." "But one cannot  if one has a heart at all  deprive the people of what they have received for many decades from government, and which they expect. It will create the most terrible hardships." "Better that all of us tighten our girdles than Rome fall," said Cicero. As Jess Stearn observed in In Search of Taylor Caldwell, this imagined historical conversation was reflective of Caldwell's own political outlook much more than Cicero's: "She was a conservative politically, believing the spoils belonged to those who toiled for them. There were not free lunches. She abhorred the welfare philosophy that gave handouts to free-loaders, decrying rewards for indolence and incompetence." Or, as John Blundell aptly quipped in Ladies for Liberty, "Taylor Caldwell gives us fiscal policy, civil service reform, cuts in aid to less developed countries, and welfare reform all in one sentence." The reproductions of Caldwell's words as a historical quote from Cicero have altered the original a fair bit over the years: the admonition that "prudence and frugality should be put into practice as soon as possible" was quickly dropped from the end of the sentence; "people" have replaced "mobs" as the ones who should be "forced to work and not depend on the government for subsistence"; the proclamation that the "arrogance of the generals should be tempered and controlled" now refers to generic "officialdom" rather than military figures; and the warning that this advice need be followed "lest Rome become bankrupt" has mutated into the more ominous-sounding "lest Rome fall." Blundell, John.  Ladies for Liberty: Women Who Made a Difference in American History.
  New York: Algora Publishing, 2013.  0-875-86865-7  (p. 145). Caldwell, Taylor.  A Pillar of Iron.
  Lake Oswego, OR: eNet Press Inc., 2013.  ASIN B00CEINOCW. Collins, John H.  "False Quotations."
  Chicago Tribune.  20 April 1971. Connolly, Jerry.  "Warning from the Past."
  Chicago Tribune.  29 March 1971  (p. 14). Lueck, Thomas J.  "Otto Passman, 88, Louisiana Congressman Who Fought Spending."
  The New York Times.  14 August 1988. Stearn, Jess.  In Search of Taylor Caldwell.
  New York: Stein & Day, 1981.  0-812-82791-0. Tench, Helen.  "Cicero's Rome Quarried for a Scholarly Novel."
  Ottawa Citizen.  14 August 1965 (p. 24). Congressional Record [House].  "History's Warning."
  25 April 1968  (p. 10635). On 5 February 2018, Shaun Usher, the owner of the blog "Letters of Note" posted an image on Twitter that purported to show Donald Trump opining that any president presiding over the United States during a stock market crash of more than 1,000 points should be "shot out of a cannon." blog image Although the image was intended to poke fun at now-President Trump's prolific Twitter use and his timeline that has offered a running joke that puts his past criticisms of his predecessor, former President Barack Obama, in context with current events (such as a precipitous stock market drop a few hours before), this tweet was not real: before   Sweet mother of god. Not for one second did I think people would believe that to be genuine.  Shaun Usher (@ShaunUsher) February 5, 2018 February 5, 2018 omg it's everywhere. What have I done.  Shaun Usher (@ShaunUsher) February 5, 2018 February 5, 2018 siri can i be arrested for making a fake tweet  Shaun Usher (@ShaunUsher) February 5, 2018 February 5, 2018 In a message sent via Twitter, Usher confirmed he was the tweet's author and that it was not real. He told us: Naively thought it too ridiculous to be believable. Says a lot, really. Was going to delete it but it was everywhere within minutes: feels like I need to leave it up in its place of birth. President Trump has legitimately tweeted about the stock market in the past, however: tweeted   Creating fake tweets is extremely easy and can spread virally within minutes  as Usher has now demonstrated, even if unintentionally. fake tweets