CNN Makes Misleading Claims in Joe Biden Fact Check

In a fact check titled "Fact check: Biden’s midterms message includes false and misleading claims", CNN makes some questionable calls.

Social Security

It's first claim is a two part claim related to Social Security, one of which states Biden misled people when he said 

“On our watch, for the first time in 10 years, seniors are going to get the biggest increase in their Social Security checks they’ve gotten.”.

CNN claims this statement is misleading because "the increase in Social Security payments for 2023, 8.7%, is unusually big simply because the inflation rate has been unusually big.", and that "A law passed in the 1970s says that Social Security payments must be increased by the same percentage that a certain measure of inflation has increased. It’s called a cost-of-living adjustment."

While CNN is accurate on all points regarding the increase and regulations underpinning the adjustment, it makes a false claim in calling Biden's statement misleading. Biden's statement is 100% accurate and not misleading at all.

While Biden was in office, this actually did take place. He did not claim to have taken any action to make this happen. He did not claim this  was a result of any laws he signed or executive action. He claimed nothing and in fact worded it with "On our watch",  which clearly indicated he merely existed while this occurred. 

While politicians are frequently blamed for bad things out of their control while in office, it is only fair to allow them credit for good things. Regardless, Biden said nothing to insinuate he himself single-handedly had anything to do with the increase, he merely state exact and actual facts.

Whole the 1st part of the two-part claim is a false claim, the second part of the claim is correct in that Social Security has seen increases every year since 2017. 

Corporate Taxes

CNN claims that Corporations will continue to pay zero in federal taxes while Joe Biden made the claim that corporations have paid zero in federal taxes. 

Both CNN and Biden are wrong.

Biden repeatedly suggested in speeches in October and early November that a new law he signed in August, the Inflation Reduction Act, will stop the practice of successful corporations paying no federal corporate income tax. Biden made the claim explicitly in a tweet last week: “Let me give you the facts. In 2020, 55 corporations made $40 billion. And they paid zero in federal taxes. My Inflation Reduction Act puts an end to this.” But “puts an end to this” is an exaggeration. 

The Inflation Reduction Act will reduce the number of companies on the list of non-payers, but the law will not eliminate the list entirely.

CNN further goes on to say that "...there will clearly still be some large and profitable corporations paying no federal income tax even after the minimum tax takes effect in 2023." and presents an "expert", Mathew Gardner, who says a better statement would be that "the minimum tax will *help* ensure that *the most profitable* corporations pay at least some federal income tax.”

The problem is the premise shared by both Biden and CNN as well as CNN's conclusion is flawed with the misconception that corporations exist that pay no federal income tax. 

All corporation pay federal income tax in the form of 1:1 employee income tax match's. If an employee must pay $1 n federal income tax, it is withheld by the employing corporation, but $2 is submitted to the IRS because the company has to match that $1 with another $1 for every penny withheld for income tax. 

This is the same reason all tax cuts benefits "the rich", even if they are for lower classes, and why that talking point will continue to be used to mislead people. 

Thus, to say any corporation ever pays zero in federal income tax, or to imply any corporation will pay zero in federal income tax in the future based on the Inflation Reduction Act, is simply incorrect. 

What they are both referring to, is corporate revenue. While companies like Amazon.com do exist where deductions outweigh corporate revenues and as such, they do not have to pay taxes on those specific revenues, make no mistake, they are still paying millions, if not billions, in federal income taxes.

This is a false claim. 

The Debt and the Deficit

CNN accurately stated Biden is incorrect in saying he cut the debt in half, although it was clear what Biden meant, his words were technically incorrect. 

The Unemployment Rate

CNN claims that Biden was misleading in stating "“Unemployment is down from 6.5 to 3.5%, the lowest in 50 years.” because the rate is actually a tie with the lowest rate.

However, whether or not there is a tie would be irrelevant. 3.5% is the lowest rate that has occurred over the past 50 years. It does not matter if this was tied with another date or not, the lowest rate in the past 50 years is still 3.5%. While Biden may have omitted the fact it was a tie doesn't make it misleading or untrue, his statement was a factual statement. Biden did not say the lowest rate occurred during his watch, or insinuated any specificity to his Administration or uniqueness to the rate proposing it was a first occurrence.     

This is a false claim. 

The remaining 4 fact checks done by CNN were accurate. For CNN, 50% is a notable improvement, especially for Daniel Dale.

Summary

CNN makes 4 false or misleading claims, while making 4 accurate claims, in regards to President Joe Biden's mid-term message. 

Claim: "Biden’s midterms message includes false and misleading claims"

Fact Check Verdict:   4 FALSE CLAIMS   4 ACCURATE CHECKS  

Claimant:  Daniel Dale

References:

1. CNN Article
2. Image: Andrew Harnik / AP