AMERICA

Fact-Checking Kevin McCarthy’s 8-Hour Speech

Written by admin

Fact-Checking Kevin McCarthy’s 8-Hour Speech

Representative Kevin McCarthy, California’s Republican and minority leader, put forth his case against President Biden’s social spending bill in a record-breaking speech that spanned more than eight hours from Thursday to Friday.

Here is a fact check of some of his comments.

What did Mr. McCarthy say?

“Just a few weeks ago, Congresswoman Abigail Spanberger said that no one chose Joe Biden as FDR, it cost more than FDR when he was fighting World War I.”

this is confusing. The bill would increase spending and tax cuts to nearly $2 trillion over 10 years, and could snowball into $4 trillion if smaller programs are scaled up.

According to a report by the Federal Reserve Bank of St. Louis, this is actually a larger dollar amount than the New Deal programs passed under President Franklin D. Roosevelt, which cost about $800 billion after adjusting for inflation. But World War II itself cost about $5 trillion.

In addition, comparing New Deal programs with social spending bills must account for changes in the size of the United States economy and population. The Federal Reserve Bank of St. Louis report also said the cost of the New Deal was 40 percent of annual GDP.

In comparison, the $1.9 trillion stimulus package that Mr Biden signed into law in March and his initial proposal for a $4 trillion economic plan – which became the infrastructure measure and the social spending bill – combined with the GDP. 28 percent of the product.

What did Mr. McCarthy say?

“You’re hiring 87,000 IRS agents to come after them, 1.2 million more audits, and half of all those 1.2 Americans who make $75,000 or less are going after them.”

this is confusing. The bill provides the IRS with $80 billion in additional funding, including about $45 billion for enforcement. The Congressional Budget Office noted in September that the proposal would result in an increase in audit rates for all, with those with higher incomes facing the biggest increases.

The bill has no specifics directing how the audit will be spread among taxpayers of different incomes, and the Biden administration and Republicans disagree about how it will run.

The Treasury Department said in a May report about the proposal that tax audit rates would not increase for those earning less than $400,000 because “compliance proposals are designed to rectify existing disparities by focusing on high-end evasion.” “

A spokesman for Mr McCarthy pointed to Republican calculations on the House Ways and Means Committee that compared historical audit data.

Over the past decade, tax audit rates for high-income earners have fallen and remained relatively stable for low-income earners, which the Treasury Department attributed to the IRS’s reduced resources and inability to retain specialized auditors. held, which is necessary to scrutinize the filing. ,

The IRS examined 1.4 million individual income tax returns in 2010, which is about 1 percent of the total number filed. In 2018, the latest year with available data, audits dropped to 370,000, or about 0.2 percent.

The Congressional Budget Office estimated that the bill would return enforcement to its 2010 levels. Doing so would actually result in about 1.2 million more audits, and about 580,000 of them would affect people earning less than $75,000.

See also  Manchin casts doubt on safety net bill, complicated road to quick vote

But that’s because a substantial portion of tax filers — about 70 percent — fall under that limit. Considering what fraction of returns are scrutinized by income group, not the sheer number suggests that wealthy taxpayers would have a better chance of getting audited than those with lower incomes under Democrats’ proposal.

Under the 2010 enforcement level, approximately 0.5 percent of returns reporting between $1 and $75,000 in income would be audited, as would 1 percent of those reporting more than $75,000 in income. In comparison, those rates were 0.3 percent and 0.1 percent in 2018. For those earning more than $10 million, returns over 20 percent will be screened under the 2010 level, compared to 5.3 percent in 2018.

What did Mr. McCarthy say?

“As an American you only have to spend $28 and the IRS is going to knock on your door.”

this is confusing. This was a reference to a Treasury Department proposal requiring banks to report total annual inflows of $10,000 or more into customer accounts to better deal with tax evasion. (A previous version of the proposal suggested monitoring a $600 inflow.) Wages and federal benefits are exempt from the reporting requirement, and banks will not report individual transactions. But this proposal could not find a place in the Social Expenditure Bill.

In a fact sheet, the Treasury Department said it was a “misconception” that all Americans would face more scrutiny under the proposal.

Michelle Nessa, an accounting professor at Michigan State University and an expert in tax audits, said the need for bank reporting was “unlikely to meaningfully increase audit risk for most people.”

What did Mr. McCarthy say?

“We’re going to tax you so that someone who makes $800,000 can get a tax exemption for buying a Tesla.”

liar. Democrats’ bill would increase the tax credit for electric vehicles from $7,500 to $12,500 if the car is made in the United States with Union Labor and if its batteries are also made domestically. The credit covers sedans that cost up to $55,000 and zero-emissions vans, SUVs and trucks that cost up to $80,000, so the Tesla Model 3, which starts in the mid-$40,000s, would qualify.

But the hypothetical near-millionaire in Mr. McCarthy’s example would not qualify, because only $250,000 or less (and joint filers earning $500,000 or less) can claim credit under the bill.

What did Mr. McCarthy say?

“More than a million people lost their jobs after President Biden was sworn in because he closed a pipeline. ,

liar. Early in his presidency, Biden revoked the construction permit for the Keystone XL oil pipeline, and the company behind the project scrapped it entirely in June. Mr. McCarthy exaggerated the impact of the pipeline on employment.

The company itself has estimated that the pipeline will employ about 11,000 Americans. The State Department estimated in a 2014 report that it would support approximately 42,000 temporary jobs during the two years of construction and 35 permanent workers after the initial phase.

See also  Miramax Plans 'Pulp Fiction' NFT . sued Quentin Tarantino

Mr McCarthy will be referring to a 2020 analysis by the American Petroleum Institute, the largest trade group in the oil and gas industry, which estimated that nearly a million jobs would be lost by 2022 if drilling were banned on federal lands. Was – not a cancellation of a pipeline.

Mr Biden banned new oil and gas leases on federal lands but did not cancel existing leases. Also, in June, a federal judge blocked the administration’s suspension of new leases. Lease approvals have actually increased under Mr. Biden, as have employment in oil and gas extraction.

What did Mr. McCarthy say?

“Biden ended every successful immigration policy President Trump has implemented, starting the biggest wave of illegal immigration in all history.”

This is exaggerated. Mr Biden actually called President Donald J. Trump has repealed many of Trump’s immigration policies, but he has retained an important policy as well.

While the Biden administration has repealed the so-called Muslim ban, halted the construction of Mr Trump’s border wall and stopped immigration raids at the workplace, it continues to use a public health rule that officials Allows the U.S. to return hundreds of thousands of migrants. Limit.

Additionally, the Biden administration tried to end a Trump-era program that forced asylum seekers to wait in Mexico while their applications were being reviewed, but could not restart the program. was ordered.

What did Mr. McCarthy say?

“You’re providing $450,000, money, for people who came here illegally, and you’re taking it from hardworking American taxpayers.”

this is confusing. The bill itself does not provide hundreds of thousands of dollars for unauthorized immigrants. Rather, it was a reference to a proposal to provide monetary compensation for damages done by a Trump-era immigration policy.

The American Civil Liberties Union and others have filed the lawsuit on behalf of migrant families separated at the border by the Trump administration. About 5500 children were separated from their parents. The Wall Street Journal reported that lawsuits seek damages of varying categories and an average of $3.4 million per household.

The Biden administration and attorneys for families are in talks to provide $450,000 for each member of the affected family, but The New York Times reported that only minority families would be eligible because many have not filed complaints against the government.

Asked about this month’s figure, Mr Biden said: “It’s not going to happen.” A White House spokeswoman later clarified that the Justice Department had told the plaintiffs that the $450,000 figure was “far more than any place where a settlement could take place.”

What did Mr. McCarthy say?

“Mr. Speaker, you must remember the Iron Dome. Your party really disregarded it.”

liar. Despite some opposition from Progressive Democrats to provide funding for Israel’s Iron Dome missile defense system, the House voted 420 to 9 in September to provide $1 billion in new funding. Democrats voted overwhelmingly for the funding.

#FactChecking #Kevin #McCarthys #8Hour #Speech

About the author

admin

Leave a Comment

close
%d bloggers like this: