Did Nikita Khrushchev Say 'We'll Keep Feeding You Small Doses of Socialism'?
An article of faith among U.S. conservatives of the Cold War era stated that the Soviets aimed to destroy America from within by promoting a program of "creeping socialism," by which they meant the gradual replacement of democratic, free-market institutions with centralized government control. Never mind that the communists themselves subscribed to a different version of the end of free-market economies, namely Marx's theory that capitalism contained the seeds of its own destruction, an end which he argued was inevitable and would culminate in a socialist revolution. theory Regardless, conservative icons such as Ronald Reagan and Barry Goldwater saw creeping socialism in every piece of progressive legislation that came around the pike, from Roosevelt's New Deal to Medicare to LBJ's Great Society social-welfare programs of the mid-1960s. They further claimed that at least one Soviet leader, Nikita Khrushchev, had explicitly announced the regime's intent to export "small doses" of socialism to the U.S. in a statement he allegedly made in 1959. Reagan was fond of quoting this supposed pronouncement in speeches he gave as a crusader for conservative causes before launching his own political career later in the '60s. This instance is from an address he delivered in 1961: address The communists are supremely confident of victory. They believe that you and I, under the constant pressure of the Cold War, will one by one give up our democratic traditions and principles and customs. Only temporarily, of course, but only temporarily we will turn to totalitarian tactics and methods just for the purpose of opposing the enemy. And then they cynically believe we will one day awake to find that we have, in adopting these tactics, become so much like the enemy that the causes for conflict have disappeared between us. Three and a half months before his last visit to this country, Nikita Khrushchev said, "We can't expect the American people to jump from capitalism to communism but we can assist their elected leaders in giving them small doses of socialism until one day they will awaken to find they have communism." Variants of this passage also appeared in newspaper opinion columns, letters to the editor, and even political ads portraying Democratic Party candidates as enemies of freedom. This example is from the Muncie, Indiana, Star Press of 5 November 1960:   Fast-forwarding to some 56 years later, we find the same quote being deployed against Democrats of today, only now in the preferred venue of social media: "giving Americans small doses of socialism until they suddenly awake to find they have communism."-Nakita Khrushchev pic.twitter.com/mQVfhYvaNo pic.twitter.com/mQVfhYvaNo  Susan Minor (@susanminor41) April 14, 2016 April 14, 2016 The authenticity of the quote was questioned practically from the get-go, however. In 1962, Sen. Lee Metcalf (D-Montana) assailed it as "a fabrication, attributed to the leader of the Communist Party, (which) arouses Americans against their elected officials." Metcalf told the Los Angeles Times that the quote was being circulated by organizations including the far-right John Birch Society, which operated a bookstore called Poor Richard's Book Shop in Hollywood: [Metcalf] said the statement has been printed on post cards distributed by Coast Federal Savings & Loan Assn. and Poor Richard's Book Shop, both of Los Angeles, but that the Central Intelligence Agency, the Federal Bureau of Investigation and the Library of Congress have all been unable to verify the quotation. Metcalf said such material leads readers "to believe that their President, their senators, their representatives, their judges and local officials are Communist stooges. Thus a lie is used to perpetrate a greater lie." The Times reported that the president of Coast Federal Savings & Loan, Joe Crail, claimed responsibility for printing the postcards but admitted he couldn't authenticate the quote and said the campaign had been discontinued for that reason. Similarly, Sen. Morris K. Udall (D-Arizona) recruited the Library of Congress to verify the authenticity of the statement attributed to Khrushchev and shared the results in the 10 May 1962 issue of The New Republic: issue "We have searched the Legislative Reference Service files, checked all the standard reference works on quotations by Khrushchev, and consulted with the Slavic division of the Library of Congress, the Department of State, and the US Information Agency, in an attempt to determine the authenticity of this quotation. From none of these sources were we able to produce evidence that Khrushchev actually made such a statement." All that supposedly changed four years later when a witness came forward to claim that Khrushchev had uttered those very words in his presence. Ezra Taft Benson, who served two terms as President Eisenhower's Secretary of Agriculture and would later head the Church of Jesus Christ of Latter-day Saints, said in a 1966 address at Brigham Young University (BYU) that Khrushchev made the statement during a one-on-one discussion the two had in September 1959: address I have talked face-to-face with the godless Communist leaders. It may surprise you to learn that I was host to Mr. Khrushchev for a half day, when he visited the United States. Not that Im proud of it -- I opposed his coming then and I still feel it was a mistake to welcome this atheistic murderer as a state visitor. But according to President Eisenhower, Khrushchev had expressed a desire to learn something of American agriculture, and after seeing Russian agriculture I can understand why. As we talked face-to-face, he indicated that my grandchildren would live under Communism. After assuring him that I expected to do all in my power to assure that his, and all other grandchildren, would live under freedom, he arrogantly declared, in substance: You Americans are so gullible. No you wont accept Communism outright, but well keep feeding you small doses of socialism until youll finally wake up and you find you already have Communism. We wont have to fight you. Well so weaken your economy until you fall like over-ripe fruit into our hands. Such a meeting did occur, documents show, but Benson's 1966 account of their exchange on communism raises more questions than it answers. Benson had cited versions of the same quote on more than one occasion prior to 1966 without claiming that Khrushchev said it in his presence. Like Ronald Reagan routinely did during the same period, Benson told audiences that the Soviet premier made the remark before, not during, his 1959 visit to the United States. Benson presented it as follows in an August 1961 commencement address at BYU (from a report in the Provo Daily Herald, emphasis added): The Communist strategy, said the speaker, was laid down by Nikita Khrushchev three weeks before he visited the United States when he was quoted as making this statement: "We cannot expect the Americans to jump from capitalism to communism, but we can assist their elected leaders in giving Americans small doses of socialism, until they suddenly awake to find they have communism." "For years LDS Church leaders have warned against such a development, Elder Benson said. He introduced the quote more or less the same way in a book he wrote the following year (1962) called The Red Carpet: Socialism -- The Royal Road to Communism (emphasis added): A few months before coming to the United States Khrushchev is reported to have said: "We cannot expect the Americans to jump from capitalism to communism, but we can assist their elected leaders in giving Americans small doses of socialism, until they suddenly awake to find they have communism." The three different versions of the story don't jibe. Did Khrushchev utter the remark three weeks before visiting the U.S., a few months before, or did he utter it during a face-to-face meeting with Benson on U.S. soil? Why did Benson write in 1962 (three years after Khrushchev's visit) that the Soviet premier was "reported" to have said it? Why was there no mention before 1966 of Khrushchev's saying it to his face? Unfortunately, Ezra Taft Benson died in 1994, so we can't ask him. Nor, as far as we know, has any third-party witness to the alleged exchange ever come forward. Far from settling the question of whether Khrushchev really vowed to slip Americans "small doses of socialism," Benson's conflicting stories leave the authenticity of the remark very much in doubt. We should also mention, in passing, that U.S. conservatives were sounding alarms about Americans being plied with "small doses of socialism" long before Khrushchev attained the premiership of the Soviet Union. This is National Association of Manufacturers President Claude A. Putnam speaking in April 1950 (as reported in the Times Herald of Olean, New York): Socialism "is being foisted on the American people piecemeal," says Claude A. Putnam of Keene, N.H., president of the National Association of Manufacturers. Putnam, who spoke here, warned that an "all-powerful government is a menace to freedom." The American people "are being given small doses of socialism, disguised as social gains and gifts of something for nothing," he declared. If we've learned nothing else in the roughly 60 years of its existence, the durability of the Khrushchev quote shows that a politically charged statement needn't be authenticated to serve its purpose as a partisan cudgel. As if to prove the point, the quote was tweeted out to 70,000 followers as recently as February 2018 by none other than Michael Reagan, Ronald Reagan's son: We cannot expect the Americans to jump from capitalism to communism, but we can assist their elected leaders in giving Americans small doses of socialism, until they suddenly awake to find they have communism."-- Nikita Khrushchev  Michael Reagan (@ReaganWorld) February 18, 2018 February 18, 2018 Benson, Ezra Taft.  "Our Immediate Responsibility."
  Latter Day Conservative.  25 October 1966. Jeffries, Stuart.  "Karl Marx's Guide to the End of Capitalism: A Primer."
  The Guardian.  20 October 2008. Reagan, Ronald.  "Encroaching Control."
  The Reagan Speech Preservation Society.  30 March 1961. Udall, Morris K.  "Khrushchev Could Have Said It."
  The New Republic.  7 May 1962. The Daily Herald.  "542 Receive Degrees at BYU Rites."
  27 August 1961. The Los Angeles Times.  "Right-Wingers Hit on 'Quote' by Khrushchev."
  9 March 1962. Times Herald.  "Keene Warns Against Spread of Socialism."
  14 April 1950.
In mid-January 2024, a viral video purportedly showed a participant at the 2024 World Economic Forum (WEF) in Davos, Switzerland, saying [expletive] you onstage to WEF Chairman Klaus Schwab. video The participant appears to stare down Schwab while standing on stage and adds, [expletive] your new world order. We the people were born free, we will stay free, and you and all of your globalist friends including everyone in this room can go [expletive] yourselves. The video was also uploaded to YouTube:  It appeared to originate from Damon Imani, a content creator, on Jan. 16, 2024, as it had his name as a watermark on the top left.  (@damonimani/X) Many online users reposted the video, including this post in French with the caption: A guest like no other, Damon Imani on stage at #WEF in Davos. reposted this post Some people appeared to think the video was authentic. It is a work of satire, however, as pointed out by Imani, the original creator and the man in the video. In a post below the original video, he wrote, Satire but true. This video is also available on Rumble here and Klaus Schwab can go f himself. Based on that statement, and the lack of any evidence at all confirming the incident happened, we rate this claim as Labeled Satire. creator According to his website (emphasis, ours): Damon Imani is an Iranian producer and artist based in Denmark, who creates video content related to various topics, including societal issues, news, and current events. Known for his satirical approach, Imani draws attention to societal and political issues through his work. With the tense political climate of the world in the 2016-20 era, Imani's content gained traction from social media users from both sides, as well as public figures such as Donald Trump, Joe Rogan, Alex Jones, Elon Musk, and many other influential figures. His work has also been featured in major media outlets such as USA Today, InfoWars, The Associated Press, BPR Politics And Business, and many more. It is also obvious from the contrast in lighting on Imani's face compared with the lighting on Schwab that Imani edited himself onto the WEF stage. Posting on X after his video gained more attention, Imani complained about the language of the community note being placed under his original video, writing, I've requested additional review. Even the language of this CN is laughable; 1. It links to my own notice. Duh! 2. Makes opinion based argument that I can't use "breaking" for something that's not breaking. This is a straightforward hijack of Community Notes to demonetize a very smart immigrant. writing  This is not the first time we have fact checked false claims involving Schwab. The WEF, as we have reported in the past, is an influential, international, non-governmental organization known for fostering private-public partnerships around economy, international development, and more. The organization, which Schwab founded in 1971, is the target of many conspiracy theories surrounding its real-life ties to elite networks that online rumor-mongers believe are nefariously planning to create totalitarian regimes. first time reported influential founded conspiracy For background, here is why we sometimes write about satire/humor. why Ibrahim, Nur. Did WEF Say Humans Will All Wear a Uniform By 2030? Snopes, 7 July 2023, https://www.snopes.com/fact-check/wef-fashion-humans-uniforms/.Accessed 17 Jan. 2024. Imani, Damon. New? Start Here! Damon Imani, 15 Oct. 2018, https://damonimani.com/about.Accessed 17 Jan. 2024. Kasprak, Alex. Was World Economic Forum Vice Chairman Aboard the Collapsed Titan Submersible? Snopes, 23 June 2023, https://www.snopes.com/fact-check/wef-titan-submersible/.Accessed 17 Jan. 2024. LaMagdeleine, Izz Scott. No, the World Economic Forum Hasnt Ordered Governments to Legalize Marriage With Animals. Snopes, 7 Mar. 2023, https://www.snopes.com/fact-check/wef-legalize-marriage-animals/.Accessed 17 Jan. 2024. "World Economic Forum Archives." Snopes. https://www.snopes.com/tag/world-economic-forum/. Accessed 17 Jan. 2024. On Nov. 28, 2022, the@Xx17965797N Twitter accounttweeteda video with a misleading caption that claimed the clip showed a sea of lined-up electric scooter bikes that were abandoned because of the high cost of electric vehicle (EV) battery replacement. The tweet read, "Electric green scooters that have reached end of battery life. Due to the batteries being so expensive to replace, electric scooters are abandoned because disposing of them any other way is dangerous and expensive." tweeted This was not true, despite the tens of thousands of combined retweets and likes that the tweet received.  The same video upload from @Xx17965797N was also misleadingly reshared by accounts including@PeterDClack, @JamesMelville, and @MillerForTexas. The former two tweets received thousands of engagements, despite the fact that the information pushed in the original tweet was not true. @PeterDClack @JamesMelville @MillerForTexas In cases like these where a caption is incorrect but the picture or video is real, we issue a fact-check rating of "Miscaptioned." Days before the @Xx17965797N tweet was posted, the@ElevaBrasilES account also misleadingly tweeted that the same video was shot in France. The tweet went up on Nov. 21 with an incorrect caption that read, "Green energy Cemetery of electric motorcycles in France. Now designated as a 'biohazard zone.'" (Note: This mention of France reminded us of other rumors we've debunked in the past, in particular about two photosof other car graveyards. The two pictures showed false captions that claimed the cars had been abandoned due to the high cost of battery replacement, just like the video we're looking at in this fact check.) tweeted two photos The oldest upload of the video that we could find came from TikTok user @smartsetting. The video was uploaded on Nov. 7 and by the end of the month had received nearly 5 million views.   Based on watching the video, the scooters appeared to be parked in a parking lot near a basketball court, perhaps in a university complex or public park. Several blurry Chinese characters were visible on the side of the bikes. At the end of the clip, a tall building could be seen on the right-hand side of the frame. Other than those pieces of information, we didn't have much to go on. In order to find the truth behind this video, we first used Adobe Media Encoder to export a JPEG file for each and every frame from the video. The results of this export were 440 individual images from the 14-second video. We then performed numerous reverse image searches with these picture files using Google Images and TinEye.com. These reverse image searches provided several clues as to where other users had reposted the video. However, we did not find any further details from these searches. Next, we tried several searches on Google, Twitter, and YouTube with phrases such as "electric scooter China" and "electric bike graveyard China," among other terms. This helped to find several repostsof the video. The searches alsoshowedresults for many of the sites in China that are the final resting placesfor massive stacks of bicycles dumped by bike-sharing companies with failed business models. Perhaps the most striking video we found was titled, "No Place To PlaceThe Wonders of Shared Bicycle Graveyards in China." several reposts showed results sites final resting places failed business models video At one point in our research, we stumbled upon an AFP videofrom 2021 that appeared to show the same yellow color and model of electric scooter bike. The caption for the clip said that it was captured "outside the city of Shenyang." The end of the video showed a stadium with special colors for seating zones. video model After an exhaustive search, we were able to find this same stadium by using the map tools on the Chinese website Baidu.com. Unlike Google Maps, Baidu.com has street-level views of nearby roads. However, this part of our effort wasn't very helpful. It remained unclear if this was the same location where the viral clip was shot. Baidu.com In the end, it was going back to TikTok that helped us find the origins of the video. A search on TikTok for "electric share bike China" brought us to this video from @evstevepan. The video showed the same kind of yellow electric scooter bike with a similar logo. A scan of the logo using a mobile phone camera and Google Translate revealed the company name Meituan, which is known as an "all-encompassing platform for local services." this video We then searched the internet for Meituan and electric scooters, which produced plenty of pictures on Shutterstock.com. For a moment, the two large characters on the side of the scooter didn't seem to match those from the viral video. We then horizontally flipped a still-frame from the viral video, which led us to discover that it had been mirrored, meaning that all words and numbers were backward. plenty of pictures All of these developments in our research led us to news articles that helped to show our findings were lining up. In April 2018, news broke that Meituan had purchased the company Mobike for $2.7 billion. According to the story, Mobike is "a Chinese startup that helped pioneer bike-sharing services worldwide." broke But by November of that same year, TechCrunch reported that Meituan would be "[walking] away from bike-sharing and ride-hailing," as there wasn't enough demand from customers for the supply of its bike-sharing venture: reported In April, Meituan entered the bike-sharing fray after it scooped up top player Mobike for $2.7 billion to face off Alibaba-backed Ofo. Over the past few years, Mobike and Ofo were burning through large sums of investor money in a bid to win users from subsidized rides, but both have shown signs of softening their stance recently. Mobike is downsizing its fleets to "avoid an oversupply" as the bike-sharing market falters, Meituan's chief financial officer Chen Shaohui said during the earnings call. Ofo has also scaled back by closing down many of its international operations. ... During its third quarter that ended September 30, Meituan posted a 97.2 percent jump on revenues to 19.1 billion yuan, or $2.75 billion, on the back of strong growth in food delivery transactions. The firm's investments in new initiatives  including ride-hailing and bike-sharing  took a toll as operating losses nearly tripled to 3.45 billion yuan compared to a year ago. Meituan shares plunged as much as 14 percent on Friday, the most since its spectacular listing. Just as so many electric bicycles from bike-sharing companies had piled up across China, so had electric scooters like the ones seen in the viral video. In sum, social media users falsely claimed that a video showed tons of lined-up electric scooter bikes that were abandoned in a "graveyard" due to the high cost of EV battery replacement. All evidence pointed to a simple answer: supply and demand. The number of electric scooter bikes and bicycles far outnumbered the number of people who requested to use them (or else they went missing or were stolen), which resulted in downsizing by some companies, and the closure of others.The clip appears to have been shot in China, although its precise location is unclear. far outnumbered went missing or were stolen We reached out to Meituan for comment on Nov. 29 but did not receive a response in time for publication. 25  2022 . ELDORADO, https://www.youtube.com/shorts/gbI2Bo2xKCc. A Veces Hay Cosas Que Duelen y Desesperan. Lamenta, 2022, https://www.youtube.com/watch?v=OmV5lBEYEMU. @Atomicfact. Twitter, 14 Aug. 2018, https://twitter.com/atomicfact/status/1029352130086424576. Baidu. https://map.baidu.com/. @BBC. "The Problem of China's Huge Bike Graveyards." Twitter, 20 May 2018, https://twitter.com/bbc/status/998231947359997952. @ElevaBrasilES. Twitter, 21 Nov. 2022, https://twitter.com/elevabrasiles/status/1594826198831570947. @evstevepan. "Share Electric Scooter in China #electricscooter #china #vlog." TikTok, 25 Sept. 2022, https://www.tiktok.com/@evstevepan/video/7147290373868506411. Freer. "Meituan Electric Shared Bikes on the Street." Shutterstock, 19 May 2020, https://www.shutterstock.com/image-photo/zhongshan-guangdong-chinamay-19-2020meituan-electric-1736816009. Google Images. https://images.google.com/. Google Translate. https://translate.google.com/. "Graveyard of the Bikes: Aerial Photos of China's Failed Share-Cycle Scheme Show Mountains of Damaged Bikes." The Straits Times via AFP, 21 Apr. 2021, https://www.straitstimes.com/asia/east-asia/graveyard-of-the-bikes-chinas-failed-share-cycle-scheme-from-above. "Graveyard of the Bikes: China's Failed Share-Cycle Scheme from Above." Techxplore.com via AFP, 21 Apr. 2021, https://techxplore.com/news/2021-04-graveyard-bikes-china-share-cycle-scheme.html. @JamesMelville. Twitter, 29 Nov. 2022, https://twitter.com/jamesmelville/status/1597532727338639360. Liao, Rita. "Meituan, China's 'everything App,' Walks Away from Bike Sharing and Ride Hailing." TechCrunch, 23 Nov. 2018, https://techcrunch.com/2018/11/23/meituan-scale-back-ride-hailing-and-bike-sharing/. @mbrennanchina. Twitter, 4 Dec. 2018, https://twitter.com/mbrennanchina/status/1069940186786775042. @MillerForTexas. Twitter, 28 Nov. 2022, https://twitter.com/millerfortexas/status/1597346555111280640. No Place To PlaceThe Wonders of Shared Bicycle Graveyards in China. Guoyong Wu, 2020, https://www.youtube.com/watch?v=TDfLWFv3ixk. @PeterDClack. Twitter, 28 Nov. 2022, https://twitter.com/peterdclack/status/1597371847397761024. Russell, Jon. "Chinese Bike-Sharing Pioneer Mobike Sold to Ambitious Meituan Dianping for $2.7B." TechCrunch, 3 Apr. 2018, https://techcrunch.com/2018/04/03/chinese-bike-sharing-pioneer-mobike-sold-to-ambitious-meituan-dianping-for-2-7b/. Shared Electric Bikes Roll into Changsha in Central China. CGTN, 2021, https://www.youtube.com/watch?v=DkSUN-FSuNI. Siqi, Ji. "Taxpayers Foot the Clean-up Bill for China's Bike-Sharing Bust." South China Morning Post, 2 Oct. 2020, https://www.scmp.com/business/china-business/article/3103908/what-happens-discarded-bikes-chinas-sharing-boom-taxpayers. Sprawling Bike Graveyard from China's Failed Share-Cycle Scheme. AFP News Agency, 2021, https://www.youtube.com/watch?v=9N1Qxs_KOYo. TinEye Reverse Image Search. https://tineye.com/. u/silvertomars. "A Graveyard for Electric Scooters the Batteries Have Reached the End of Their Life-Time, but Are Too Expensive to Replace and Safely Disposing or Recycling the Batteries Is Also Too Expensive." r/Wallstreetsilver via Reddit.com, 28 Nov. 2022, https://www.reddit.com/r/Wallstreetsilver/comments/z7i7ng/a_graveyard_for_electric_scooters_the_batteries/. @vegastarr. Twitter, 28 Nov. 2022, https://twitter.com/vegastarr/status/1597338236472659968. @Xx17965797N.Twitter, 28 Nov. 2022, https://twitter.com/xx17965797n/status/1597310309139873792. Yan, Alice. "Chinese Bike-Share Firm Closes after 90 per Cent of Cycles Stolen." South China Morning Post, 21 June 2017, https://www.scmp.com/news/china/society/article/2099293/chinese-bike-share-firm-closes-after-90-cent-cycles-stolen. When U.S. House SpeakerPaul Ryanmet with Milwaukee Journal Sentinel staff on Sept. 1, 2017, an editor mentionedmajor tax cutsadopted under Republican President Ronald Reagan in 1981. At first, Ryan joked around. The music was bad in those days, and the tax laws were as well, he replied, chuckling. So, I think -- Im not a big 80s music guy; Im more of a 70s guy. But the 47-year-old Janesville Republican quickly got serious. Arguing that U.S. taxes are stopping U.S.-based multinational corporations from bringing giant sums of money to America,he stated: We've got about $3 trillion in trapped cash overseas that basically can't come back in this country because of our tax laws. Ryan has made essentially the same claim a number of times, including onMilwaukee television,on CNBC,on Twitterand to theNew York Times. So, do U.S. tax laws essentially prevent $3 trillion being held overseas from being brought to this country? Keep the wordrepatriatein mind. Taxing foreign earnings The object of Ryans criticism is the U.S. corporate tax rate. At 35 percent, as we reported in aDonald Trumpfact check during the 2016 presidential campaign, it isamong the highestin the world -- though its worth noting that, after deductions, companies typically pay an effective rate that can be much lower. (Trump, by the way, pledged during the presidential campaign to reduce the rate to 15 percent. That promise has been rated asIn the Workson PolitiFact NationalsTrump-O-Meter.) As for the focus of Ryans claim, hes talking about U.S.-based multinational corporations. More specifically, the foreign-earned profits of those companies.Heres an exampleof how the taxation works: If the company earns income in a country with a 20 percent corporate tax rate, it would pay that 20 percent tax immediately to that country. If that money is then repatriated -- that is, brought back to the companys U.S. headquarters -- the company would pay an additional 15 percent to the U.S. government. (In other words, the U.S. tax rate of 35 percent minus the 20 percent already paid to the foreign country.) So, as long as the profits stay parked overseas, there is no U.S. tax on it. Now to the specifics of Ryans claim. The $3 trillion figure To back up Ryans statement, his office cited an April 2017CNBC news articlethat said American companies are holding about $2.6 trillion in overseas earnings, and the figure has been growing. Thats thelatest estimateby Congress nonpartisan Joint Committee on Taxation, for 2015, although an estimate done in July 2017 for PolitiFact National put the figureat $2.8 trillion. So, Ryans claim of about $3 trillion is reasonable. Its worth noting that the figure has been rising. In fact, considering only the Russell 1000 index of large companies, the amount of parked cash overseas has more than doubled since 2008, as shown in a July 2017 report by the Massachusetts research firm Audit Analytics: Year Amount of foreign-earned profits by U.S.-based companies kept overseas 2008 $1.09 trillion 2009 $1.19 trillion 2010 $1.36 trillion 2011 $1.63 trillion 2012 $1.89 trillion 2013 $2.12 trillion 2014 $2.3 trillion 2015 $2.43 trillion 2016 $2.62 trillion Trapped and basically cant come back Ryan asserts that the money is trapped overseas and basically cant come back because of U.S. tax laws To be sure, a substantial amount of foreign profitsare repatriated each year. But Ryan didnt invent the term trapped cash. In fact, academicsfor yearshavereferred to itas a commonly used term to describe the growing amount of cash held by U.S. multinationals overseas to avoid, or at least defer, paying the 35 percent U.S. tax rate. Ryans claim is also backed bySeptember 2017 paperpublished by the National Bureau of Economic Research, a nonpartisan organization in Massachusetts. The paper found a dramatic increase in U.S. corporations holding onto cash; that the cash is concentrated in foreign subsidiaries of multinational corporations; and that it is explained by low foreign tax rates. News articlesalso havereported on the phenomenon. In August 2016,Apple CEO Tim Cook saidof his companys profits parked offshore: Were not going to bring it back until theres a fair rate. Theres no debate about it. Apple is second to Microsoft in the amount of cash parked overseas, according to Audit Analytics. And as the San Jose Mercury Newsreported in May 2017, the tax is such a deterrent that even though Apple was sitting on $240 billion in overseas cash, it has continued to borrow money. The reason: The borrowing cost Apple 4 percent or less, far below the 35 percent tax that would be paid for repatriating the overseas cash. One more point before we close: The companies would like to repatriate the money because bringing it back to the parent company enables them to do things such as paying dividends, doing stock buybacks and investing in U.S. operations. Several academic experts told us that some of the overseas money, while not repatriated directly back to the companies U.S. headquarters, is invested in U.S. securities. That doesnt trigger the 35 percent tax. Our rating Ryan says: We've got about $3 trillion in trapped cash overseas that basically can't come back in this country because of our tax laws. To avoid a 35 percent U.S. tax, U.S.-based multinational companies have opted not to repatriate roughly $3 trillion of their foreign profits, a figure that is growing. That is, they dont bring the money back to their U.S. headquarters, where it can be used for things such as dividend payments or investments in their domestic operations. But the overseas profits arent literally trapped and indeed some foreign-earned profits are repatriated, though they are subject to the 35 percent tax. Ryans statement is accurate but needs additional information, our definition of Mostly True. On March 19, 1995, an episode of "The Simpsons" entitled "Lisa's Wedding" took a futuristic view of Springfield's favorite family after Homer's daughter visited a fortuneteller's booth. At one point in the episode, Lisa's future husband, Hugh Parkfield, voiced by actor Mandy Patinkin, bent over and spoke into a strange-looking device on his wrist: a half flip phone, half wristwatch that most modern viewers would liken to a smartwatch. This animated gadget can be glimpsed at the 2:58 mark of this video about similar Simpsons "predictions." (You can read our coverage on "Simpsons" predictions here.) video "Simpsons" predictions here This is a genuine clip from a 1995 episode of "The Simpsons." It is also true that this episode aired more than 20 years before the "Year of the Smartwatch" in 2014, when these devices became relatively common. However, "The Simpsons" shouldn't get credit for "predicting" the smartwatch for two reasons: Year of the Smartwatch It's difficult to pinpoint exactly when the first smartwatch was produced, because it depends on the criteria you use to classify one. The first digital watches were produced in the 1970s. In 1983, the Seiko Data-2000 featured a built-in keyboard for data input. A few years later, Sinclair made a watch with an FM radio, and in 1994 Seiko unveiled a watch that doubled as a pager. The Timex Datalink, which was also introduced in 1994, is a good contender for the first "modern" smartwatch because it had the ability to transfer data by linking to a computer.  smartwatch produced The point is that the road to the modern smartwatch has been a long and winding one that predated this episode of "The Simpsons."  In addition to these early entries into the smartwatch market, the idea of a smartwatch can be traced back even further. Special agent James Bond, for instance, has a long history of using watch gadgets to aid his spy craft. In 1973's "Live and Let Die," Bond's watch was equipped with a circular saw and a magnet. In 1977's "The Spy Who Loved Me," Bond used his watch to print out tiny messages. In 1995's "Golden Eye," Bond's watch was equipped with a laser.  James Bond And Bond wasn't the only fictional character to use a dual-purpose watch. Fred Flintstone once communicated via a radio watch, as did members of "The Jetsons." Detective Dick Tracy also used a radio watch in a 1946 comic strip, and who could forget Penny's watch in "Inspector Gadget?" fictional character 1946 comic strip   In sum, "The Simpsons" didn't predict the smartwatch. While this episode of "The Simpsons" is real and truly predated the "Year of the Smartwatch" in 2014, this was not the first time a smartwatch appeared in a movie, comic strip, or television show. Furthermore, the evolution of the smartwatch was well underway by the time this episode aired in 1994.  You can read more about The Simpsons alleged predictions in the Snopes collection The Simpsons Didnt Predict That. The Simpsons Didnt Predict That Blakemore, Erin.  "How Dick Tracy Invented the Smartwatch."
  Smithsonian Magazine.  9 March 2015. Osborn, Jacob.  "A Complete List of All James Bond 007 Watches."
  Man of Many.  18 October 2019. Lamkin, Paul.  "Smartwatch Timeline: The Devices That Paved the Way for the Apple Watch."
  Wareable.  10 March 2015. Thompson, Joe.  "A Concise History of the Smartwatch."
  Bloomberg.  8 January 2018. Hamblen, Matt.  "Is 2014 the Year of the Smartwatch?"
  PC World.  28 December 2013. King, Rachel.  "Before They Were Stars: Smartwatches in Pop Culture."
  ZDnet.  6 March 2015. Claim:  President Obama refused to participate in the ALS Association's "Ice Bucket Challenge."  Example:  [Collected via e-mail, August 2014] Tea Party.net posted on Facebook that President Obama refuse to take the ice bucket challenge from an 86 year old woman who did take the challenge.  Is that true and how did this 86 year old lady submit her challenge to the White House to begin with, etc.  Is is also true that the original challenge was either do the ice bucket or contribute 100 dollars to your favorite charity compared to the way it is going around now?   Origins:  In August 2014 the online world was hit with the "Ice Bucket Challenge," a playful competition that encouraged netizens to douse themselves with buckets of ice water, and challenge others to do the same,  Ice Bucket Challenge as a method of raising awareness and donations for the ALS Association (ALSA)  a national non-profit organization that provides services to persons with ALS (amyotrophic lateral sclerosis, also known as Lou Gehrigs Disease) and helps to fund research into the disease. As of mid-August 2014, ALSA was reporting it had surpassed $10 million in "Ice Bucket" donations. ALS Association reporting As described on ALSA's web page about the "Ice Bucket Challenge," that phenomenon seeks both to raise awareness of ALS (through people actively taking the challenge of dumping buckets of ice water on their heads and posting videos of their activity on the Internet) and to raise funds for ALS research (through donations provided by those who prefer making financial contributions rather than dousing themselves with ice-cold water): The challenge involves people getting doused with buckets of ice water on video, posting that video to social media, then nominating others to do the same, all in an effort to raise ALS awareness. Those who refuse to take the challenge are asked to make a donation to the ALS charity of their choice. One of those who accepted the "Ice Bucket Challenge" was 86-year-old Ethel Kennedy, the widow of Senator Robert F. Kennedy, who took part in a mass challenge event on 10 August 2014 involving numerous members of the Kennedy clan and others, then challenged President Obama to do the same, declaring "Welcome to Cape Cod, President Obama. I nominate you": challenge event  The White House responded by stating that President Obama's contribution would be financial rather than participatory: responded The President appreciates Mrs. Kennedy thinking of him for the challenge  though his contribution to this effort will be monetary. The President [will] be making a donation to an ALS charity this week. Did President Obama therefore "refuse" to take the "Ice Bucket Challenge"?  If one considers the whole essence of the challenge to be pouring ice water over one's head to raise awareness of ALS, then perhaps so. But, as described on the ALSA web site, the challenge also involves raising donations for ALS research from those who decline to participate in the "dousing yourself with ice water" portion and are instead asked "to make a donation to the ALS charity of their choice," and President Obama honored the spirit of the challenge by agreeing to the latter aspect. Last updated:  19 August 2014 One of the lessons of the personal computer revolution that began in the 1970s was that tremendous business success was no longer entirely the province of staid, conservatively-dressed, mature adult males with expensive business school educations.  As Microsoft, Apple Computer, and hundreds of other technology-driven companies demonstrated, plenty of young, sartorially-questionable, self-taught young people of both sexes could achieve business success on a par with some of the world's oldest and biggest corporations.   A photograph of Microsoft staff members in 1978 has been circulated online for many years bearing titles such as "Would you have invested?"  It reflects the notion that, back in 1978, not many people might have predicted that a small group of casually-dressed, long-haired youngsters was creating a corporation that would, four decades later, reach an estimated market value of $330 billion, themselves  becoming millionaires (and a few even billionaires) in the process. market value In December 1978, Microsoft had just completed its first million-dollar sales year, and the decision was made to decamp from the company's Albuquerque, New Mexico, headquarters and relocate to bigger and better digs in the Pacific Northwest state of Washington.  The formal studio photograph displayed above was taken on 7 December 1978, shortly before that move, and captured all but a couple of the current Microsoft staff: To suitably immortalize the Albuquerque years, Bob Greenberg cut a deal with a photo studio for a group portrait on December 7. Pearl Harbor Day in Albuquerque featured a snowstorm, but only Miriam Lubow, who was stranded at home with her kids, and Ric Weiland [Microsoft's second employee], out of town on business, failed to make the sitting.  All eleven of the employees in the Albuquerque picture, along with Weiland, were about to make the trip to Seattle.  Only Miriam Lubow would stay behind  reluctantly.  Gates offered to pay for her and her family's move to Seattle, but Miriam's husband demurred: "He said, 'Why are we going to follow this kid to Seattle? It always rains in Seattle.'" On a Concorde flight to Europe, Gates wrote her a thank-you note for her service to Microsoft. As it turned out, she was merely postponing the inevitable. Three years later Miriam would move to the Seattle area and work again for Microsoft, this time focusing more narrowly on a skill she had developed in Albuquerque: getting customers to pay up. (Technically, Microsoft wasn't yet "Microsoft Corporation" at the time this photograph was taken  the company was founded as a partnership and officially became a  Washington State corporation on 1 July 1981.) As for the identities of the persons pictured, and their lives after Microsoft:  Bill Gates (front row, left):  William Gates III, the Harvard drop-out who at 18 co-founded (and later served as CEO and Chairman of the Board of) Microsoft, the world's largest software company, hardly needs any introduction.   He is regularly ranked as the one of the richest individuals in the world (with an estimated net worth in 2015 of $78 billion); in 2008 he  withdrew from Microsoft's day-to-day operations to focus his attention on the Bill & Melinda Gates Foundation, which combats diseases such as polio, malaria, and AIDS. richest withdrew Foundation  Andrea Lewis (front row, second from left):  Andrea Lewis was a former MITS technical writer and Computer Notes editor hired in 1978 to produce documentation for Microsoft products as the company's first technical writer.  She left her day-to-day job at Microsoft in 1983, has since worked as a freelance journalist and fiction writer, and helped create the Richard Hugo House, a literary center in Seattle.  She now lives in Seattle with her husband and two children. MITS Richard Hugo House  Marla Wood (front row, second from right):  Marla Wood (wife of Steve Wood, also pictured above) worked as a bookkeeper and administrative assistant at Microsoft until 1980, when she and her husband left the company (becoming the first of the eleven staff members in the photograph to depart Microsoft), in large part due to a dispute regarding payment of overtime wages: Bill's letter confirming [a $50,000 offer to Steve Ballmer to become his assistant] became a personnel disaster when some disgruntled soul copied it and tacked it on the office bulletin board. Along with his salary, high for Microsoft, Ballmer was to get a 5 to 10 percent cut of the company based on a formula involving the year's revenue growth.  It sorely rankled loyalists who had been slaving for the company since the Albuquerque days without so much as a profit-sharing plan to show for it. When it came to clerical help, Gates had been tightfisted beyond the bounds of the law. Overtime had always been paid on a straight-time basis, and though the rules affecting programmers might be debatable, the rules affecting clerical workers were not. Marla Wood and other office staffers had checked into the labor regulations and discovered that they deserved time and a half for overtime  currently and retroactively. When Steve Wood approached Gates about it, he agreed to start paying time and a half but insisted that back pay was out of the question. If the secretaries wanted to file a complaint, well, let 'em. They did. When the state notified Gates that the back pay was due, it wasn't long before Marla Wood got the news:  Bill comes storming into my office saying he just had a phone call from these people, just livid. This was the one time I was really on the receiving end of one of his rages  I mean, just screaming about this and how it was going to ruin his reputation ... This would be on his reports forever and ever ... I was saved by an overseas phone call which he proceeded to take at my desk, whereupon I ran out, went down to Steve's office and said, "I'm quitting. I can't stand it here any more." And he said, "That's all right; I'm seeing a headhunter tomorrow anyway." But before she and her husband departed Microsoft, Marla saw to it that the issue was settled. Although it amounted to only $100 or so for her and as little as $20 for the others, "It was just a matter of principle."  Paul Allen (front row, right):  Paul Allen, a childhood friend of Bill Gates, co-founded Microsoft with Gates in 1975 and resigned his day-to-day position in 1983 after he was diagnosed with Hodgkin's disease (for which he was successfully treated), although he remained on Microsoft's board of directors until 2000.  A variety of post-Microsoft investments, in technology companies and other areas of business (including ownership of the Seattle Seahawks football team and the Portland Trail Blazers basketball team) have helped bring him an estimated net worth of $17 billion. Like Bill Gates, he engages in philanthropic efforts through his chairmanship of the Paul G. Allen Family Foundation. net worth Foundation  Bob O'Rear (second row, left):  In 1978 programmer Bob O'Rear was, at age 35, the oldest of the Microsoft staff members pictured above, and, as a native Texan, one of only two staffers who did not come from the Pacific Northwest area.  He was also one of the best-educated employees, a NASA engineer who held degrees in mathematics and physics.  He left the company in 1993 and now runs a cattle ranch in Texas in addition to serving on the boards of a variety of high-tech firms.  Bob Greenberg  (second row, second from left):  Bob Greenberg, who arranged the deal for the studio photograph displayed above, was a programmer Bill Gates knew from his Harvard days, hired in 1977 to help Microsoft create a new version of the BASIC programming language for a new Texas Instruments computer.  Greenberg proved invaluable for more than just his technical expertise, lending the fledgling company $7,000 during a financial crunch in mid-1977; although he left Microsoft in 1981, he went from one business juggernaut to another, helping the family business, Coleco, launch the Cabbage Patch Kids marketing craze of the 1980s. He now reportedly develops software for golf courses. Coleco  Marc McDonald (second row, second from right):  Marc McDonald is generally identified as Microsoft's (then "Micro-Soft") first employee, hired in 1976 to adapt BASIC for the new NCR 7200 machine.  (Although a couple of other people had worked for Microsoft on a contract basis, McDonald was the first hiree to draw a regular salary.)  Marc left Microsoft in 1984, reportedly disenchanted with the changes wrought by the company's burgeoning growth, and went to work for fellow ex-Microsoft staffer Paul Allen's new company, Asymetrix.  In an amusing coincidence, McDonald eventually ended up back at Microsoft when it acquired Design Intelligence, the Seattle-based software company for which he was then working. NCR 7200 acquired  Gordon Letwin (second row, right):  The initial 1978 meeting between Gordon Letwin and his future employer, Bill Gates, was somewhat contentious, according to the biography Gates: Befitting its role as a haven for soldering-iron types, Heath[kit] was now marketing its own computers, including a Z-80 machine with a homegrown edition of BASIC instead of the Microsoft version. As Bill Gates was attempting to correct this egregious error, he was introduced to a black-haired gnome by the name of Gordon Letwin, who proceeded to chew him out in front of a group of about fifteen people. Letwin, the author of Heath's BASIC, felt his turf was being violated  and by the purveyor of an inferior product to boot. Bill Gates nonetheless prevailed, selling Heath his BASIC and FORTRAN for H-DOS, a proprietary operating system Letwin had developed for Heath. But Letwin had instinctively understood how to win the favor of William Henry Gates: Stand up to the guy. By the end of the year Gordon Letwin would come to work for Microsoft and begin work on a BASIC compiler. Among other projects, Gordon served as Microsoft's chief architect for the development of the infamous OS/2 operating system and stayed with the company longer than any of the other staffers pictured above (with the exception of Bill Gates himself), finally leaving in 1993 to escape the day-to-day tech bustle and enjoy life.  He has reportedly contributed a substantial portion of the money he acquired during his tenure at Microsoft to various environmental causes.  Steve Wood (top row, left): Steve Wood was Microsoft's first married employee, a Stanford graduate with a master's degree who was hired in 1976 to help create a Microsoft version of FORTRAN.  Later, when Steve was serving as Microsoft's office manager, his wife Marla joined the company as a clerical worker, eventually taking over all of Microsoft's bookkeeping chores after Miriam Lubow stayed behind when the firm relocated from New Mexico to Washington.  Steve and Marla both left Microsoft in 1980 (as detailed above); in 1996, Steve Wood founded Wireless Services Corp. (now SinglePoint), a mobile messaging company. SinglePoint  Bob Wallace (top row, center):  Bob Wallace joined Microsoft in 1978 after responding to a photocopied ad that Paul Allen had left in the Seattle computer store where he worked.  He served as a production manager and software designer until 1983, when he became (like Marc McDonald would the following year) disenchanted with the changes in the company's culture brought about by Microsoft's success and growth: [Paul] Allen's illness and departure coalesced uneasiness within the ranks of the remaining Albuquerquians  the core group that had helped establish Microsoft early, had followed their leader to Bellevue, had stuck with the company through some tumultuous years, and now found themselves being middle-managed into oblivion. In March 1983 Bob Wallace, in the best Microsoft tradition, got into a heated dispute with his supervisor over a technical point. The supervisor told him, "there's nothing you can do about it, and you can't talk to Bill about it ... I'm the only one who can talk to Bill." For Wallace, being barred from talking with Bill was not just a shock but an insult. He told his supervisor as much, half expecting Gates to intercede. When it didn't happen, he resigned. In 1983 Bob Wallace started his own company, Quicksoft, which marketed the text-processing program PC-Write, generally touted as being the first (widely-used) shareware program.  He sold Quicksoft in 1991, moved to northern California a few years later, and  long interested in psychedelic drugs  started Mind Books (a bookstore offering literature about psychoactive plants and compounds) and the Promind Foundation (an organization dedicated to supporting scientific research and public education about psychedelics).   In 2002, Bob Wallace became the first (and so far the only) one of the eleven Microsoft staffers pictured above to pass away, succumbing to pneumonia at age 53.  Jim Lane (top row, right):  Jim Lane, who got his start with microcomputers at the Denver-based Digital Group, was hired by Microsoft in late 1978 (shortly before this picture was taken).  As a Microsoft project manager, he was a key figure in forging the partnership between Microsoft software and Intel's microprocessors (a relationship symbolized by the development of the term "Wintel").  He left Microsoft in 1985 (reportedly stating that the company had "beat the enthusiasm out of me") to run his own software/consultancy business. Digital Group Wintel Nearly thirty years later, just before Bill Gates stepped down from being involved in the day-to-day operations of Microsoft, the eleven staffers pictured above reunited for another photograph, with office manager Miriam Lubow (who missed the original sitting) taking the place of Bob Wallace (who died in 2002): President Barack Obama and his allies have increasingly focused on income inequality as a top policy challenge for 2014. A recent tweet by Ian Bremmer, a leading expert on the intersection between international relations and finance, seemed to provide some fuel for Obamas concern. Bremmer is the president and founder of the Eurasia Group, an international research and consulting firm, as well as a global research professor at New York University. On Jan. 4, 2014, hetweeted, US: Change in Income, 2009-13. Top 1%: +31.4%. Bottom 99%: +0.4%. We thought wed take a closer look at Bremmers numbers. We struck paydirt when we looked at the most recent data compiled by Emmanuel Saez, an economist at the University of California who has spent years studying inequality, most often with Thomas Piketty, a French economist. In his paper,Saezfound that between 2009 and 2012, the top 1 percents incomes grew by 31.4 percent while the bottom 99 percents incomes grew by 0.4 percent -- the same numbers Bremer had tweeted. This means, according to Saezs paper, that the top 1 percent captured 95 percent of the income gains in the first three years of the recovery. So Bremmer can point to solid sourcing for his claim. However, not everyone is enamored of the Piketty-Saez approach. Alan Reynolds, a scholar with the libertarian Cato Institute, haswrittenthat the Piketty-Saez methodology tends to exaggerate the earnings of the top 1 percent and underestimate the earnings of the bottom 99 percent. The Piketty-Saez method uses pre-tax income and includes realized capital gains. This effectively boosts the measured income of the richest Americans, since they earn a lot of capital gains and they pay a lot of taxes. Meanwhile, for the 99 percent, the Piketty-Saez method excludes transfer income -- that is, payments from the government to individuals, including such items as Social Security, unemployment insurance, Medicaid and food stamps. Reynoldsestimatedthat such transfer payments accounted for more than 16 percent of personal income in 2009. Transfer payments, he wrote, totaled $2.3 trillion in 2012. Also, Reynolds argues that way the Piketty-Saez numbers are calculated makes them subject to short-term fluctuations based on taxes. He suggests that the prospect of higher taxes in 2013 may have led to a surge of bonuses and cashing out of investments that would be subject to capital gains taxes -- something that also happened in 1992 and 1986. If true, this tendency would magnify an otherwise minor error in how Bremmer phrased his tweet. Bremmer tweeted that the figures covered the period 2009 to 2013; in fact, the Saez data, covers 2009 to 2012. The 2013 data are not available yet -- but they could look different due to the timing issue. (Bremmer told PolitiFact that he'd meant to communicate that the data went from 2009 to the start of 2013, but that could have been expressed more clearly.) In the meantime, one could easily produce a more nuanced narrative than the familiar rich-get-richer story. Consider this table published in themost recent Saez paper:  Time period Average real growth in income Real income growth for top 1 percent Real income growth for bottom 99 percent Fraction of total growth (or loss) captured by top 1 percent Full period, 1993-2012 17.9 percent 86.1 percent 6.6 percent 68 percent Clinton Expansion, 1993-2000 31.5 percent 98.7 percent 20.3 percent 45 percent 2001 Recession, 2000-2002 -11.7 percent -30.8 percent -6.5 percent 57 percent (of losses) Bush Expansion, 2002-2007 16.1 percent 61.8 percent 6.8 percent 65 percent Great Recession 2007-2009 -17.4 percent -36.3 percent -11.6 percent 49 percent (of losses) Recovery, 2009-2012 6.0 percent 31.4 percent 0.4 percent 95 percent  This table -- Saezs own data -- shows that the top 1 percent saw its inflation-adjusted income drop by 36.3 percent during the great recession, then recover by only 31.4 percent. In other words, the top 1 percent actually had a net loss between 2007 and 2012 -- a more modest net loss than the one suffered by the bottom 99 percent, to be sure, but a decline that muddies the easy story line. Even a scholar whos sympathetic to the Piketty-Saez approach acknowledges that its not the only way to look at the numbers. If you want the distribution of market income produced by the economy and as reported for income taxes, the Piketty-Saez numbers are the right numbers, said Timothy M. Smeeding, director of the Institute for Research on Poverty at the University of Wisconsin. But if you want to gauge the effect of government programs on the income distribution, especially for the poor or middle classes, the outcome is different and cannot be measured by Piketty-Saez number. Smeeding says that the degree of inequality is eased a bit once you take into account taxes and benefits. Still, he said, the top 1 percent still gets a bigger share, just not as big as the Piketty-Saez numbers show. Our ruling Bremmer tweeted that in the United States, the top 1 percent of earners saw their income increase by 31.4 percent between 2009 and 2013, compared to 0.4 percent for the bottom 99 percent.He took those numbers from the respected, long-running analysis of income inequality by Piketty and Saez, but this research is not the only way to look at the question. Taking into account taxes and transfer payments would reduce -- though likely not eliminate -- the difference in income gains between the 1 percent and the 99 percent. In addition, Bremmer acknowledged that his phrasing about the time frame for the data could have been clearer. His statement is accurate but needs clarification or additional information, so we rate it Mostly True. On June 14, 2022, a tweet went viral that supposedly showed two cans of Arizona Iced Tea labeled with different prices. The tweet suggested that it was time to start "panicking" and insinuated that rising inflation rates had resulted in the cost of cans of Arizona Iced Tea rising from $0.99 to $1.29.  tweet went viral rising inflation rates  While this photograph is genuine, the cost of Arizona Iced Tea did not increase from $0.99 to $1.29. The picture actually shows the price for cans of iced tea in different countries. The can on the left shows the cost of Arizona Iced Tea in USD, and the can on the right shows the cost of this beverage in CAD (Canadian dollars).  Arizona Iced Tea responded to the rumor on social media, writing that there was no need to panic and that the cost of their beverage is still $0.99 in the United States.   This was not the first time this rumor has spread on social media. The same picture racked up more than 140,000 likes in January 2021 when it was shared with the caption: "If this world is coming, I dont want to live in it." Arizona Iced Tea also responded to that viral tweet:  In April 2022, Don Vultaggio, the co-founder of Arizona Beverage Company, told the Los Angeles Times that he was "committed to that 99-cent price." Vultaggio said: Im committed to that 99-cent price  when things go against you, you tighten your belt. I dont want to do what the bread guys and the gas guys and everybody else are doing. Consumers dont need another price increase from a guy like me. No, AriZona Iced Tea Hasnt Raised the Price of Its 99-Cent Can to $1.29. Wtsp.Com, 6 June 2022, https://www.wtsp.com/article/news/verify/money-verify/arizona-iced-tea-price-not-raised-from-99-cents/536-06ac8786-911b-436b-b640-48a013d06f72. Twitter, et al. As Inflation Soars, How Is AriZona Iced Tea Still 99 Cents? Los Angeles Times, 12 Apr. 2022, https://www.latimes.com/business/story/2022-04-12/az-iced-tea-inflation-99-cents. Criminals, beware. Just because you got away with an illegal activity doesnt mean the IRS isnt going to come after your earnings. Thats because just ahead of the 2021 tax season, the IRS released guidelines that required taxpayers claim items they have stolen, as well as earnings from illegal activities.  The claim made headlines in publications that joked potential criminals were running out of time to return stolen goods to avoid paying taxes on them. And went viral when the financial Twitter account @litquidity took to social media to remind taxpayers that tax szn is around the corner.  publications joked running out of time  And its true. Publication 17, which contains the IRS general rules for filing federal income tax returns, lists illegal activities under other income  categorized as self-employment activity  required to be reported to the federal tax agency.  Publication 17 general rules  Screengrab/IRS Publication 17  IRS Publication 17   "Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Schedule 1 (Form 1040), line 8z, or on Schedule C (Form 1040) if from your self-employment activity," read the 2021 the IRS guidelines. The guidelines also require that those who steal property must report fair market value as income in the year that the item was stolen. Of course, one can avoid paying taxes on such items so long as the person returns them to the person they were stolen from in the first place.   Screengrab/IRS Publication 17  IRS Publication 17   The handy regulations also list how to report embezzled funds, notes that bribes are considered nondeductible expenses, and notes that kickbacks, side commissions, and push money must also be included in the Schedule 1 (Form 1040), line 8z, or on Schedule C (Form 1040) if from self-employment activity. Its not just items or earnings obtained through illegal activities. That watch you found in the gym locker room? Yep, its taxable.  If you find and keep property that doesnt belong to you that has been lost or abandoned (treasure trove), its taxable to you at its fair market value in the first year its your undisputed possession, noted the IRS. Snopes spoke with an accountant who said that while the reporting requirements themselves aren't new, there was previously a separate form specifically for reporting illegal activity income. It's unclear to what extent people actually used the form in the past. Its not exactly clear whether law enforcement will be given information about individuals who report income from illegal activities. What is clear is that anyone under the age of 65 who made more than $12,550 in 2021 is required to file by April 18, 2022.  Sources Dolan, Debra. Time Is Running out to Return Stolen Goods to Avoid Paying Taxes on Them. Https://Www.Wdbj7.Com, https://www.wdbj7.com/2021/12/29/time-is-running-out-return-stolen-goods-avoid-paying-taxes-them/. Accessed 30 Dec. 2021. IRS Asks That Criminals Provide Its Cut of Stolen Property, Illegal Income. KXXV, 29 Dec. 2021, https://www.kxxv.com/news/local-news/irs-asks-that-criminals-provide-its-cut-of-stolen-property-illegal-income. Publication 17 (2021), Your Federal Income Tax | Internal Revenue Service. https://www.irs.gov/publications/p17. Accessed 30 Dec. 2021. Stole Something? IRS Says Stolen Property and Bribes Must Be Reported as Income. Usatoday, https://www.usatoday.com/story/money/2021/12/28/irs-says-stolen-property-must-reported-and-twitter-goes-wild/9035694002/. Accessed 30 Dec. 2021. Claim:  E-mail reports the truth about the environmental impact of drilling for oil in the Arctic National Wildlife Refuge (ANWR)    OF AND  INFORMATION Example:  [Collected via e-mail, June 2008] First, do you know what ANWR is? ANWR = Arctic National Wildlife Refuge. Now, a comparison:  And some perspective ...  NOTE WHERE THE PROPOSED DEVELOPMENT AREA IS ... (its in the "ANWR Coastal Plain")  THIS IS WHAT THE TV People and others "GREENS" SHOW YOU WHEN THEY TALK ABOUT ANWR ... and they are right ... these ARE photographs of ANWR   Isn't ANWR beautiful? Why should we drill here (and destroy) this beautiful place? Well, thats not exactly the truth. Do you remember the map? The map showed that the proposed drilling area is in the ANWR Coastal Plain. Do those photographs look like a coastal plain to you? What's going on here? The answer is simple. That is NOT where they are wanting to drill! This is what the proposed exploration area ACTUALLY looks like in the winter:  And this is what it ACTUALLY looks like in the summer:    HERE ARE A COUPLE SCREEN SHOTS FROM GOOGLE EARTH   As you can see, the area where they are talking about drilling is a barren wasteland.  Oh, and they say that they are concerned about the effect on the local wildlife. Here is a photo (shot during the summer) of the 'depleted wildlife' situation created by drilling around Prudhoe Bay. Don't you think that the Caribou really hate that drilling?  Here's that same spot during the winter:  Hey, this bear seems to really hate the pipeline near Prudhoe Bay, which accounts for 17% of U.S. domestic oil production.  Now, why do you think that the Democrats are LYING about ANWR? Remember when Al Gore said that the government should work to ARTIFICIALLY raise gas prices to $5 a gallon? Well, Al Gore and his fellow Democrats have almost reached their goal! Now that you know that the Democrats have been lying, what are you going to do about it? You can start by forwarding this to everyone you know, so that they will know the truth. P.S.: Drilling does not "destroy." It creates jobs, resources and strengthens our economy  all while protecting our environment. Everyone benefits, even caribou. Origins:  As the price of oil continues to rise with no predictable end in sight, debates over whether the U.S. can and should be producing more oil from domestic sources have been renewed.  A primary focus of such  debates has been the Arctic National Wildlife Refuge (ANWR), an area which encompasses 19 million acres in the northeast corner of Alaska. The ANWR issue is now a political hot potato batted back and forth between proponents of exploration and development in ANWR's Coastal Plain who assert that the area could become a valuable source of domestic oil production with minimal impact on the environment, and opponents who maintain that the potential advantages to be gained from drilling for oil in ANWR are far too small to offset the despoiling (and potential devastation) of a protected wildlife area.The issue has been complicated by the uncertainty of many factors involved in the opening of ANWR to U.S. oil production, such as the total amount of oil underlying the area, the size of the oil fields that might be found in ANWR, the quality of the oil that might be found in ANWR, the potential production capacity of ANWR drilling operations, how long it would take before ANWR operations began providing significant amounts of oil for the U.S. market, what effects the oil extracted from ANWR would have on world oil supply and prices, and the environmental impacts of oil exploration and development in ANWR.    factors The e-mailed slide show reproduced above might serve a useful function in prompting the public to take a greater interest in all the issues surrounding the potential opening of ANWR to oil exploration, but the information it presents is scant and one-sided.  Since the ANWR issue is far too extensive and complex to cover in detail here, we'll just provide a brief summary of both sides' arguments regarding points mentioned by the e-mailed slide show, with links to sites (on both sides of the issue) that provide greater detail:  Although the ANWR is small in size compared to the entirety of Alaska, at 19 million acres it is larger than ten other states.  (As the third graphic shows, ANWR is about the size of the state of South Carolina.) Proponents point out that the proposed development area within the ANWR Coastal Plain is a relatively small patch of 2,000 acres, an area which constitutes roughly1/10,000 of the total acreage of the ANWR.  Opponents maintain that a similar drilling operation in Alaska at Prudhoe Bay was originally designated to encompass only 2,100 acres but has since expanded to a total drilling footprint of 12,000 acres spread over 640,000 acres of the North Slope. size expanded  Proponents maintain that wildlife continues to flourish amid drilling and other oil production activities in other Arctic regions and would fare just as well near ANWR exploration facilities.  Opponents assert that other North Slope oil development activities have caused an average of 504 spills per year since 1996, including "4,532 spills between 1996 and 2004 totaling more than 1.9 million gallons of toxic substances." flourish spills  Proponents maintain that the proposed ANWR Coastal Plain development area is primarily a featureless, barren expanse that is frozen and windswept for most of the year, and therefore exploration and drilling activities would have minimal impact on wildlife in the immediate area (or in the greater ANWR).  Opponents assert that environmental accidents can have devastating effects far outside the limited areas in which they originally occur. Last updated:  2 July 2008