In recent articles, The Washington Post and The New York Times uncritically reported House Minority Leader John Boehner's (R-OH) debunked suggestion that increasing taxes on those making more than $250,000 would cause a large percentage of small businesses to pay higher taxes. The Post reported on February 26 that President Obama's 2010 budget proposal “would reduce the value of tax deductions for families earning more than $250,000 by about 20 percent, according to administration documents.” The article reported that Boehner said, “If the tax-deduction cap is enacted, it is likely to hit many small businesses.” Likewise, in its February 25 article, the Times uncritically quoted Boehner's statement, "[I]s increasing taxes during an economic recession, especially on small businesses, the right way to accomplish that goal?" Neither the Post nor the Times pointed out that according to the Tax Policy Center's table of 2007 tax returns that reported small business income, 481,000 of those returns -- about 2 percent -- are in the top two income tax brackets, which include all filers with taxable incomes of more than $250,000.

Boehner's unchallenged comments revive a false talking point from the 2008 campaign about then-Sen. Obama's proposal to increase taxes on those making more than $250,000. As Media Matters for America documented, Sen. John McCain falsely claimed that "[i]f you are one of the 23 million small business owners in America who files as an individual rate payer, Senator Obama is going to raise your tax rates."

From the February 26 Washington Post article:

About half the money for the new fund would come by capping itemized tax deductions for Americans in the top income bracket. The proposal, which administration officials characterize as a “shared-responsibility issue,” would reduce the value of tax deductions for families earning more than $250,000 by about 20 percent, according to administration documents.

[...]

If the tax-deduction cap is enacted, it is likely to hit many small businesses, said House Republican Leader John A. Boehner (Ohio).

“Everyone agrees that all Americans deserve access to affordable health care,” he said, “but is increasing taxes during an economic recession, especially on small businesses, the right way to accomplish that goal?”

If the budget is approved by Congress, drug companies will be required to increase the rebate they pay on medications sold to Medicaid patients from 15 percent to 21 percent. The proposal, which would raise $19.5 billion over 10 years, is likely to spark strong opposition from the industry, which has argued that the current rebate cuts into profits.

From the February 25 New York Times article:

President Obama will propose further tax increases on the affluent to help pay for his promise to make health care more accessible and affordable, calling for stricter limits on the benefits of itemized deductions taken by the wealthiest households, administration officials said Wednesday.

The tax proposal, coming after recent years in which wealth has become more concentrated at the top of the income scale, introduces a politically volatile edge to the Congressional debate over Mr. Obama's domestic priorities.

The president will also propose, in the 10-year budget he is to release Thursday, to use revenues from the centerpiece of his environmental policy -- a plan under which companies must buy permits to exceed pollution emission caps -- to pay for an extension of a two-year tax credit that benefits low-wage and middle-income people.

The combined effect of the two revenue-raising proposals, on top of Mr. Obama's existing plan to roll back the Bush-era income tax reductions on households with income exceeding $250,000 a year, would be a pronounced move to redistribute wealth by reimposing a larger share of the tax burden on corporations and the most affluent taxpayers.

Administration officials said Mr. Obama would propose to reduce the value of itemized tax deductions for everyone in the top income tax bracket, 35 percent, and many of those in the 33 percent bracket -- roughly speaking, starting at $250,000 in annual income for a married couple.

Under existing law, the tax benefit of itemizing deductions rises with a taxpayer's marginal tax bracket (the bracket that applies to the last dollar of income). For example, $10,000 in itemized deductions reduces tax liability by $3,500 for someone in the 35 percent bracket.

Mr. Obama would allow a saving of only $2,800 -- as if the person were in the 28 percent bracket.

[...]

In the House, the Republican leader, Representative John A. Boehner of Ohio, telegraphed his side's opposition to any tax increases.

“Everyone agrees that all Americans deserve access to affordable health care,” Mr. Boehner said in a statement, “but is increasing taxes during an economic recession, especially on small businesses, the right way to accomplish that goal?”