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Politico's Smith, Martin reported McCain campaign's claim that Obama would raise taxes on 21 million small businesses without noting it's false

July 07, 2008 11:56 am ET

SUMMARY: Politico writers Ben Smith and Jonathan Martin reported a claim by Tucker Bounds, McCain campaign spokesman, that "Barack Obama wants more taxes from 21 million small businesses," without noting that it is false. In fact, Obama has proposed rolling back President Bush's tax cuts only on "people who are making 250,000 dollars a year or more," and according to the nonpartisan Tax Policy Center, 481,000 small businesses fall into the tax brackets that would be affected by those increases.

63 Comments

In a July 7 Politico article, senior political writers Ben Smith and Jonathan Martin reported an assertion by Tucker Bounds, campaign spokesman for John McCain, that "Barack Obama wants more taxes from 21 million small businesses," without noting that the claim is false. Bounds' claim echoed McCain's false suggestion during a June 10 speech at the National Small Business Summit that Obama plans to raise taxes on 21.6 million sole proprietorships that file taxes under the individual income tax. In fact, Obama has proposed rolling back President Bush's tax cuts only on "people who are making 250,000 dollars a year or more," and according to the nonpartisan Tax Policy Center's table of 2007 tax returns that reported small-business income, 481,000 of those returns are in the top two income tax brackets -- which include all filers with taxable incomes of more than $250,000 -- not 21.6 million.

From the July 7 Politico article:

On June 19, Barack Obama released his first television advertisement, a multi-million dollar, 18-state production that conveyed the core of his campaign's goal this summer: To establish his American cultural normalcy.

Obama offered a clear new version of his complex family story: "I was raised by a single mom and my grandparents. We didn't have much money, but they taught me values straight from the Kansas heartland where they grew up." His African father and his upbringing abroad were never mentioned, and he was pictured in six images surrounded by ordinary-looking white people.

Two hours later, John McCain's campaign spokesman, Tucker Bounds, emailed reporters a terse, standard-issue and irrelevant response: "Barack Obama wants more taxes from 21 million small businesses, 10 million seniors and he's confessed that his economic proposals could damage the economy -- we're confident the more Americans know about Barack Obama the less likely they are to support him," he said.

The exchange encapsulated the disconnect between the two campaigns. John McCain is attacking Barack Obama in well-worn terms: As a flip-flopper, an elitist and a typical politician. But in a year when polls show a generic Democratic candidate easily taking the White House, the Illinois Senator has little reason to fear being defined by his party -- or as anything typical.

"There has never been a major party candidate less relevant in an election than John McCain," said Democratic strategist James Carville. "It's all about Obama."

To Obama right now, McCain is indeed almost incidental.

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    • Author by wzwriter (July 07, 2008 12:01 pm ET)
         

      I see the lies are starting up again after the holiday weekend.

      (BTW - does anyone else find it ironic that Larry Harmon - TV's "Bozo the Clown" - and Former Senator Jesse Helmes died on Thursday and Friday within 24 hours of each other?)

      Report Abuse
      • Author by JLyons (July 07, 2008 12:21 pm ET)
           

        I see the lies are starting up again after the holiday weekend.

        I do not think the GOP takes time off from lying nor do the hacks they have in the media. This is just tryuly pathetic of Politico.

        Report Abuse
        • Author by IRONY 101 (July 07, 2008 12:41 pm ET)
             
          What's sad is that they will keep repeating this lie over and over again despite any objective numbers to the contrary...and Republican voters won't care just as long as Barack Obama is portrayed in a bad light.
          Report Abuse
          • Author by wolf kotenberg (July 07, 2008 4:41 pm ET)
               
            with the price of gas average being $4.29 a gallon, isn't that like a tax increase ( under Bush's governance ? )  Money is flying out of my wallet at an alarming rate. We got a problem now.
            Report Abuse
    • Author by Brabantio (July 07, 2008 12:10 pm ET)
         
      It seems like pointing out the misinformation in the press release would have fit in perfectly with the dismissive tone of the Politico article.  I wonder if they were ignorant of the fact, or if they felt that the tone would be somewhat "balanced" by a nugget of BS in favor of McCain.
      Report Abuse
      • Author by bruce1ace (July 07, 2008 1:11 pm ET)
           

        Are there even 21 million small business?  That doesn't seem possible.

        Speaking the truth about raising taxes on 481 thousand small businesses would be effective enough if you wanted to present it that way.  Just tell the truth.

        Report Abuse
        • Author by IowaDem (July 07, 2008 1:47 pm ET)
             
          I agree, Bruce. Let's just tell the truth, that only a small, elite percentage of the voting public consisting of incredibly wealthy people will see their taxes increase while the large percentage of less affluent, non-elite, regular people will see their taxes decrease.  That is a splendid idea!  Thanks!
          Report Abuse
        • Author by wzwriter (July 07, 2008 2:34 pm ET)
             

          Are there even 21 million small business? 

          Found thru Google:

          In 2004, there were approximately 24.7 million businesses in the United States, according to Office of Advocacy estimates. The Internal Revenue Service (IRS) estimates there were 29.3 million nonfarm business tax returns in 2004; however, this number may overestimate the number of firms, as one business can operate more than one taxable entity.

          Census data show there were 5.7 million firms with employees and 17.6 million without employees in 2002 (and 18.6 million without employees in 2003). Applying the sole proprietorship growth rates to the nonemployer figures and similar Department of Labor growth rates to the employer figures produces the 24.7 million figure. Small firms with fewer than 500 employees represent 99.9 percent of the 24.7 million businesses, as the most recent data show there are 17,000 large businesses.

          Information courtesy of the Small Business Administration, Office of Advocacy.

          http://www.smallbusinessnotes.com/aboutsb/sbfacts/sbnumber.html

          Report Abuse
          • Author by juliajayne (July 07, 2008 2:45 pm ET)
               
            Thanks for that info., WZ. Until two years ago I had an S-Corp and now I have a sole proprietor business. It's not uncommon at all.
            Report Abuse
            • Author by juliajayne (July 07, 2008 2:47 pm ET)
                 
              Uh oh, that puts a lie to me being an anti-capitalistic leftist commie pinko.
              Report Abuse
              • Author by BillJ-MN (July 07, 2008 4:10 pm ET)
                   

                You could join a cooperative operating for the good of the community, or simply give your profits to the proletariat.

                Where do the right wing nutjobs get the idea that American liberalism isn't compatible with capitalism?

                Report Abuse
                • Author by ConstanceRifleII (July 07, 2008 6:01 pm ET)
                     
                  "Where do the right wing nutjobs get the idea that American liberalism isn't compatible with capitalism?"

                  Sean Hannity and Rush Limbaugh.
                  Report Abuse
        • Author by leatherhelmet (July 07, 2008 7:34 pm ET)
             
          Since Obama wants to raise the FICA tax, it will affect alot more businesses under the $250,000 mark. 
          Report Abuse
          • Author by roundhouse (July 08, 2008 10:26 am ET)
               
            And conversely, McCain would eliminate the tax breaks that businesses receive for providing health insurance for their employees, hence, McCain intends to raise taxes on all businesses, as well as, driving up cost for the individual. Genius idea, Johnnie Mac.
            Report Abuse
    • Author by ConstanceRifleII (July 07, 2008 12:11 pm ET)
         

      "Two hours later, John McCain's campaign spokesman, Tucker Bounds, emailed reporters a terse, standard-issue and irrelevant response: "Barack Obama wants more taxes from 21 million small businesses, 10 million seniors and he's confessed that his economic proposals could damage the economy -- we're confident the more Americans know about Barack Obama the less likely they are to support him," he said."

      I don't know, I may have to bat around the notion of a WITH on this one.  Though they didn't say "false" they did say "irrelevant."  Then again, they did report it as a "This campaign said/this campaign said" instead of actually looking into the claims.  That's a big problem that journalists need to work on.

      Report Abuse
      • Author by Brabantio (July 07, 2008 12:12 pm ET)
           
        "Irrelevant" doesn't speak to veracity, though.  It leaves the impression that it's true.
        Report Abuse
        • Author by ConstanceRifleII (July 07, 2008 12:16 pm ET)
             
          no I agree, I was just actively typing and thinking at the same time.  However, when was the last time the media actually reported on the veracity of the claim?
          Report Abuse
    • Author by IRONY 101 (July 07, 2008 12:17 pm ET)
         
      21 million... 50 million.... 75 million...? Who cares...? The number is abitrary...another false factoid that might as well have been lifted from a transcript of Rush Limbaugh's radio show. Republican voters have been lied to so much I doubt if they even care any more that the bullshet they're fed is made-up. All they want to hear is that liberals are bad...the details are irrelevant.
      Report Abuse
      • Author by JLyons (July 07, 2008 12:21 pm ET)
           

        All they want to hear is that liberals are bad...the details are irrelevant.

        Sounds like the 1988 campaign all over again.

        Report Abuse
      • Author by Don Hussein Fabuloso (July 07, 2008 12:47 pm ET)
           

        another false factoid that might as well have been lifted from a transcript of Rush Limbaugh's radio show (Irony101)

        Eh, Rush Limbaugh, McCain's campaign, the guy working at the dinette. They're all reliable sources, and save our media from doing too much hard work.

        Report Abuse
        • Author by IRONY 101 (July 07, 2008 12:51 pm ET)
             
          The Republicans have turned this nation into one where facts and the truth are meaningless. They create alternate realities which their mindless base eats up without question. Scary, really...
          Report Abuse
          • Author by ollied2330 (July 07, 2008 8:23 pm ET)
               

            How is it that THE LIBERAL MEDIA DOESN'T HAVE THE SAME FOLLOWING WITH THE TTTRRRUUUTHHH????? After reading many columns today, it's really gettin much HARDER to find the LIBERAL  MEDIA.

            Report Abuse
    • Author by open_mind (July 07, 2008 12:25 pm ET)
         

      WITH? 

      I disagree with MMFA for criticizing the McCain campaign here.  I mean, let's look at the bright side. The McCain campaign was only off by a factor of about 40.  That is downright excellent math for Republicans and I think we need to encourage that improvement.  Bravo, Mr. Bounds!  Bravo!

      Report Abuse
      • Author by IRONY 101 (July 07, 2008 12:37 pm ET)
           

        It's Republican math...like the projected costs of the Iraq war and the number of WMD that Saddam was aiming at us.   ;>)

        Report Abuse
    • Author by eniobob2631 (July 07, 2008 12:26 pm ET)
         
      These people sit on "bottomless pits"for they seem to have no depth from where they pull this garbage from.They must use a roll of toliet paper at a time,for such big and deep Arsses.
      Report Abuse
    • Author by foghornleghorn (July 07, 2008 12:53 pm ET)
         

      To establish his American cultural normalcy.

      He's an elitist.

      He attended a madrasa.

      He's a closet muslim.

      He's a "typical" politician.

      His pastor is a racist.

      He's black.

      His wife is "angry" and prone to use terrorist fist bumps.

      He drinks orange juice.

      Report Abuse
      • Author by Kyle_Broflovski (July 07, 2008 12:57 pm ET)
           

        You forgot several more labels:

        He's a socialist/fascist/commie

        He's an 'empty suit' (whatever that means?)

        He's a bad bowler

        He's 'out of touch' with 'regular people'

        Report Abuse
        • Author by IRONY 101 (July 07, 2008 1:56 pm ET)
             
          And he's fathered two black children...   ;>)
          Report Abuse
        • Author by princeofwheels (July 07, 2008 4:48 pm ET)
             

          "He's a Manchurian Candidate"..

          Sorry, that would be McCain, he was Songbird, The POW, wasn't he?

          Report Abuse
      • Author by H-Man (July 07, 2008 1:12 pm ET)
           
        Get it right. It was a Terrorist Fist Jab. I constantly use that term now when I see people do it. When my friends look at me funny I explain to them that Fox news believes it is a terrorist plot. Then we all laugh. 
        Report Abuse
      • Author by historygeek001 (July 07, 2008 1:30 pm ET)
           
        Are there any Replutocrats that are not "typical" politicians?  Except, of course, McSame, who everybody knows is a straight talker.
        Report Abuse
    • Author by dexteritas0071418 (July 07, 2008 4:31 pm ET)
         
      Obama can't raise taxes so it's a moot argument.
      Report Abuse
      • Author by Don Hussein Fabuloso (July 07, 2008 5:00 pm ET)
           

        it's a moot argument

        Or, "lie" as we call 'em around here on Planet Earth.

        Report Abuse
        • Author by dexteritas0071418 (July 07, 2008 5:26 pm ET)
             
          What is a lie? That the president can't raise taxes or that the argument is moot?
          Report Abuse
          • Author by Don Hussein Fabuloso (July 07, 2008 5:33 pm ET)
               
            The subject of the MM item. Try to focus.
            Report Abuse
            • Author by dexteritas0071418 (July 07, 2008 5:38 pm ET)
                 

              Tell you what: Why don't you get out of your basement and out of those superman undies you like to wear (and nothing else) while you're in front of your computer, typing ahole remarks to people you don't agree with politically, and get a job, a girlfriend, a friend, a life. Then come back, debate the issues with some level of politeness and respect, and then I'll respond further.

              Report Abuse
              • Author by Don Hussein Fabuloso (July 07, 2008 5:49 pm ET)
                   
                Great response. Weird fantasies and advice on what I should do for the privilege of reading more of your  comments? The self-esteem workshops are really paying off, Dex.
                Report Abuse
                • Author by skipp2989 (July 07, 2008 5:54 pm ET)
                     
                  Wow Col, I'm not sure whose window Dex is peeping into.  My guess is it's not yours.  I will put on a robe the next time I'm in my Superman undies and on the computer in Mom's basement.
                  Report Abuse
                  • Author by open_mind (July 07, 2008 6:20 pm ET)
                       

                    I knew it couldn't be me the second I saw superman undies.  Its strictly spiderman or commando for me!

                    ; )

                    Report Abuse
                • Author by juliajayne (July 07, 2008 6:39 pm ET)
                     
                  Why Colonel, you wear Superman undies? I've been flirting with the wrong dude on this here forum :-0)
                  Report Abuse
                  • Author by IRONY 101 (July 07, 2008 7:47 pm ET)
                       

                    I don't wear underwear, Julia... in case you're interested.  ;>)

                    Report Abuse
                    • Author by juliajayne (July 07, 2008 8:08 pm ET)
                         

                      Well, commando is okay with me, but the colonel says any undies he puts on become superman undies, so I dunno. He's lookin' better and better. And since Jeter is evidently cruising another liberal site for chicks, I may be in the market for a new BF soon.

                      Report Abuse
    • Author by cArn (July 07, 2008 5:58 pm ET)
         
      I take issue with Dex's claim that one can't wear superhero undies and hold a job or a meaningful relationship.
      Report Abuse
      • Author by open_mind (July 07, 2008 6:24 pm ET)
           
        I think you are exaggerating Dex's point.  Dex obviously has a problem with people who wear Superman undies. I don't see anything that would disparage the wearers of Aquaman, Batman or Captain America undies for that matter.
        Report Abuse
        • Author by skipp2989 (July 07, 2008 6:33 pm ET)
             
          OK guys,OK.  I'll wear the robe.  Mom's been after me to wear it ever since I came up to get a pop out of the fridge when her card club was in the dining room.  I'm just embarassed that Dex saw me.  I feel so ashamed. 
          Report Abuse
        • Author by dexteritas0071418 (July 07, 2008 6:50 pm ET)
             

          I bet Col. had his mom stitch in a big P across the S for "SUUUUUUUUPERPROGRESSIVEMAN!!!!!"

          FRIEND OF THE DOWNTRODDEN!

          FOE OF THE PROFITABLE AND SUCCESSFUL!

          INSULTOR OF ALL WHO DISAGREE!

          But BEWARE Col's arch-nemesis, CONSERVATIVE GUY and his dim-witted sidekicks, NEOCONMAN and RELIGIOFASCIST BOY! And don't forget the one thing SUPERPROGRESSIVEMAN is NOT immune to, the ONE thing he cannot stand: SELFDETERMINATIONANDRESPONSIBILITY-ITE!!!

          Report Abuse
          • Author by skipp2989 (July 07, 2008 7:02 pm ET)
               
            The Col doesn't need me to defend him and I don't think he was being overly hard on you when you made your "moot point" comment.  The president, who ever he or she is, does influence taxation.  Otherwise Georgebush the first would have said, "Gee I hope congress will read my lips and vote no new taxes."  Gotta go.  Mom's making me those little bagels in the microwave, you know the ones with pizza toppings on them.  "Coming Ma."
            Report Abuse
          • Author by juliajayne (July 07, 2008 7:03 pm ET)
               

            Give it up little boy. You're not getting any traction here.

            Report Abuse
            • Author by dexteritas0071418 (July 07, 2008 7:07 pm ET)
                 

              They can dish it out, but they just can't take it...

               

              Report Abuse
              • Author by skipp2989 (July 07, 2008 7:15 pm ET)
                   
                Take what???? We're typing. It's not fisticuffs. 
                Report Abuse
                • Author by Don Hussein Fabuloso (July 07, 2008 7:24 pm ET)
                     

                  Not only what, but who? Maybe if people (like Dex) would be a little more clear in making their points, they wouldn't have to go through feeling so persecuted when asked for a little "fleshing out" of their comments.

                  And everybody else would be spared the "you're just insulting me because I disagree" nonsense.

                  Report Abuse
                  • Author by ollied2330 (July 07, 2008 8:32 pm ET)
                       

                    If you'll just say it often enough and LOUD enough, any conservative can/will understand anything said, by anyone!!  Ex Limbaugh/Savage/Colter. What is said, and the true meaning are not as important as the NUMBER OF TIMES AND THE TONE it is said in. Love my country, not my gov't.

                    Report Abuse
              • Author by Don Hussein Fabuloso (July 07, 2008 7:20 pm ET)
                   

                Wow, Dex, you really went off on this. Maybe I misunderstood your original comment about it being a "moot argument". I saw it as an attempt at a variation of the WITH angle, I thought you were saying that the item was insignificant because the president can't unilaterally raise taxes. That would actually make the statement that he will raise taxes a lie on an additional level.

                If I missed the point, I'm all ears.

                And my mom lives in a condo, she doesn't have a basement. And any underwear I put on become Superman underwear. So there!

                Report Abuse
                • Author by dexteritas0071418 (July 07, 2008 9:50 pm ET)
                     

                  My apologies for being insulting. It's not couth and not eye-for-an-eye.

                  I do take offense when you and a few others seem to consistently attempt to belittle the person and intelligence of a poster whose position you disagree with. Sometimes we all get carried away, but don't you think it's important to try to convince someone that your position is best, if for no other reason than to win another for your cause? If so, we don't need to name-call, question intelligence, integrity, etc, we can be polite, respectful, and attempt to show each other the error of our ways.

                  Col., I do think there's a smart guy typing on your keyboard. I enjoy your unfortunately-too-few-and-far-between posts that are thoughtful instead of smearing. Im certainly not asking you to stop having a good time with your poster-friends here, but would appreciate keeping it respectful.

                   And I promise never to make fun of your underwear choices again. In my younger days, I was a fan of Super Mario bros. undergarments myself.

                  ::insert mushroom tip joke here::

                  Report Abuse
                  • Author by skipp2989 (July 07, 2008 10:08 pm ET)
                       

                    Mr. Dex.

                    I don't post often and I usually try to be respectful when I do. I am sorry if you took offense at my part in the goofing on your underwear post. (that sounds odd doesn't it)   I have a lot of respect for the Col because he is usually smart and does not take himself too seriously.  I come to this sight for the occassional insight, information and some laughs.  I'm not sure why anyone would get offended by the the chatter on a blog but we should try to respect one another.

                    Report Abuse
                  • Author by Don Hussein Fabuloso (July 08, 2008 11:00 am ET)
                       

                    Dex, Hope you check back here.Thanks for the semi-compliment, and save the lecture. My initial response to you was only to your "it's a moot argument" comment.

                    It seemed unrelated to any comment near it, so I assumed (as I posted earlier) that you were pulling a variation of the always-fascinating  WITH ploy,downplaying the lying about Obama's tax policy by the McCain camp. It seemed you were saying the lie was ok because it wasn't true.

                    I don't know where you're getting off calling my post a smear, unless I completely misunderstood your comment. I asked for clarification, you declined to give it, instead going for a lecture on manners to me (who had not said anything belligerent to you, except to try to focus when you seemed confused) and a bunch of weird basement/underwear images and dittohead stereotypes of liberals.

                    Seriously, if you can explain the "moot argument" remark , I'm listening.

                    I'd recommend that some of you posters stop being so thin-skinned in the face of good-natured jabs here, especially if you're going to be so unaware of your own less-than-polite comments.It really gets boring reading the poor little victims calling everything a smear that questions their comments.

                    Report Abuse
                    • Author by juliajayne (July 08, 2008 12:43 pm ET)
                         
                      Some posters here evidently don't know what a smear is, Colonel. But Dex has revelaed himself quite a lot more than he ever did before, so we now know exactly where he stands. So that was instructive. We've actually let him get away with quite a few jabs here and there without any consequences (being that people don't usually respond to him). And he apparently liked the guise of being a somewhat hospitible poster. But he has revealed himself now as being not only pretty inhospitible, but also highly partisan with his view of what "liberals" are. Interesting stuff.
                      Report Abuse
                      • Author by juliajayne (July 08, 2008 12:46 pm ET)
                           
                        I would like to add that his comments about "liberals" are about as refined and intellectually vacant as Philib's. And that's not a compliment. 
                        Report Abuse
                        • Author by Don Hussein Fabuloso (July 08, 2008 1:00 pm ET)
                             

                          Yep, JJ. another innocent victim conservative, crying bloody murder when asked to back up his statements. They really are delicate little orchids.

                          JJ,You posted a comment a while back that really hit home.Somebody was belittling you for posting jokes and limericks in a thread that had degenerated into a WITH/playing dumb/wingnut victim and politeness police mess. You described yourself as being an abstract thinker, and not interested in the micro-parsing of words, or dealing with forcibly explaining things to those trying not to understand. I think that's where I lose interest as well.

                          Nothing against those posters, I've seen the 300+ comment threads that are mostly copy & paste back and forth, links to different sites rebutting each other, and trying to manufacture every possible interpretation of a quote.

                          I'm more common sense, most of these issues at MMFA are fairly simple, and I've come to the conclusion that those who don't seem to understand them after reading the item, maybe with an additional explanation from other posters, are either;

                          A. playing dumb to waste other people's time, or

                          B. Dumb, and wasting people's time. This includes those who think playing dumb is a smart debating tactic.

                          Neither of these types deserve to be treated like the pampered brats Mommy obviously convinced them they are. Jokes and mild jabs toward them are not only acceptable, they're much better than they deserve.

                          Report Abuse
                          • Author by juliajayne (July 08, 2008 2:31 pm ET)
                               

                            Colonel, I appreciate that you and I get each other. You were one of the only people who responded to me when I first came on this forum and I've always appreciated you for that, as well as your insightful, humourous take on things. And to be honest, I've always harbored a little crush on you, but Shhhh. Don't tell Jeter (I see he's back).

                            Report Abuse
          • Author by ollied2330 (July 07, 2008 8:03 pm ET)
               
            RESPONSIBILIT!!! How can any conservative even utter that word, much less put it in print. Responsibility and accountability are just two of the qualities that have been missing since 2000; check out HONESTY, TRUTHFULNESS, AND INTEGERITY. Many neo's CHOOSE to HEAR but not LISTEN.
            Report Abuse

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