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Mike Pence repeats the Republican lie that getting rid of the Bush tax cuts is going to raise taxes on small businesses. As our own Jon Perr noted only about 2% are impacted by the return to higher rates for incomes over $250,000:

Lie #1: President Obama will raise taxes on small businesses.

John McCain introduced this fraud along with Joe the Plumber during the 2008 campaign. McCain proclaimed Obama's plan to restore 1990's tax rates for taxpayers making over $250,000 meant "the small businesses that we're talking about would receive an increase in their taxes right now." In February, Senate Minority Leader Mitch McConnell (R-KY) regurgitated the long-debunked talking point:

"I don't think raising taxes is a great idea, and when our good friends on the other side of the aisle say raising the taxes on the wealthy, what they are really talking about is small business."

Of course, they're not talking about small business. As CNN concluded in October, "fewer than 2% of small business owners would pay more under Obama's plan." But in case there was any doubt about the Republicans' deception on the point, the nonpartisan Tax Policy Center quickly put it to rest:

Out of 34.7 million filers with business income on Schedules C, E or F, 479,000 filers fall into the top two brackets, according to an analysis of projected 2009 filings by the nonpartisan Tax Policy Center.

The other 34.3 million - or 98.6% - would be unaffected by Obama's proposed rate hike.

Somehow Mike Pence thinks that 2% equals "more than half". So either he's really bad at math, or he's lying. I'm in the camp of the latter.

Jansing: You have said, I’m quoting you here, if Democrats get their way, every income tax bracket will rise on Jan. 1st, 2011, but PolitiFact says in fact Democrats want to keep tax cuts for people making less than $200,000 so is that really an honest interpretation of what the Democrats’ plan to do?

Pence: Well, we’ll see. I know Democrats have been talking about trying to preserve some of the middle class tax cuts that were passed in 2001 and 2003 but Chris there’s no legislation, there’s been no bills considered in committees and while I’m encouraged by that my point was the American people deserve to know that if the Congress fails to act, every American will see a tax increase on Jan. 1, 2011 and for their part the Democrats stated position is that at the very least what they want to preserve are tax increases on job creators, on small business owners, on Americans who report income of over $200,000 a year and we just think that raising taxes in the midst of the worst recession in twenty five years if a profoundly bad idea.

Jansing: And yet some people have argued that the Bush tax cuts have been in affect since 2001 and if they’re so beneficial to the economy why isn’t it in better shape?

Pence: Well look, I was here in Congress in 2001. I was here on the Capitol grounds on 9-11. I mean it was a time of extraordinary anxiety for the American people and it was a time of extraordinary economic turmoil. I have no doubt that the tax relief in 2001 and 2003 helped to stave off what was poised to be a very difficult time in the life of our economy but right now we’re back in another difficult time and the very idea that when more than half the people that file tax returns, over $200,000 a year, actually small business owners filing as individuals, the idea that you would raise taxes on small businesses owners and job creators in the middle of this recession doesn’t make any sense.

This is the same guy who just signed on to be part of Michele Bachmann's Tea Party caucus. The media keeps touting this wingnut as a potential 2012 Presidential candidate. All I can say is bring it on. He's about as bright as Palin not quite as mean spirited.

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40 Comments
berniem's picture

First off one must understand the audience to whom he is speaking. Reactionaries, "baggers", concervatives(whatever that means), republicans, or what have you are predisposed to believe even the most outrageous BS if it spews from the mouths of the right and/or depricates anything considered "liberal" or Progressive. I guess the basis for this is this population's aversion to learned inquiry and a long history of dependence on faith and ideological obeisance to authority, wealth, and power. Attempting to sway their opinions thru logic and reason is a lost cause for the most part when you realize that so many still believe the world is only 10K years old and that evolutionary history is nothing but a trick of satan!

Different Anonymous's picture
.

many still believe the world is only 10K years old

HERETIC!! The earth is only 6000 years old!

It's curious that the 2% of small bidness owners is the approximate equal to the 2% that benefit from the tax cuts in general. I wonder if the simpler explanation is that 2% of this country recieves the most benefits from tax "reform" in general?

to put a point on it 'a Blatant lie'..

www.cbpp.org clears up the tax breaks and the deficit!

audience..They need to be called on their BS and lies..AT EVERY TURN..SCREAM AT THE NEWS OUTLET ALLOWING THE LIES TO PASS WITHOUT CORRECTION AND CALL THE SPONSORS TO BOYCOTT! DO IT Locally too..the local outlets can not afford to loose ONE SPONSOR>>

THis site corrects the costs of the tax breaks for the wealthy and the deficits...www.cbpp.org

smchris's picture

there are too many progressives who still want to believe in "Change we can believe in."

Why should people who want to think of themselves as conservatives be any less deluded? "Gosh, you mean every main street restaurant owner doesn't _net_ a couple million/year?" Shocking.

ysbaddaden's picture
)O(

Small businesses are considered among the middle-class

Obama still plans on using targeted tax cuts for the middle-class, but roll back the tax-cuts for the top 5%.

I haven't heard what his plans are for the estate tax.


Diabolus est Deus Inversus

Proud American Liberal's picture

to the previous percentage next year if nothing at all is done. "Conservatives" want it to be eliminated permanently. It should be re-established and increased.

cund_gulag's picture

again with something to totally stupid, this time using Rovian
math (or, is he back on Rovian METH?).
A bag of hammers would do better on the SAT than this idiot. As and extra added plus, a bag of hammers is actually useful, unlike this idiot. And I do mean IDIOT!

Handypants's picture
...

All of these guys see the world through "Rove colored glasses" where Bush was a great president and his policies worked.

(AKA bass akwards world)


"I know that there are people who do not love their fellow
man, and I hate people like that!
" ~ Tom Lehrer (1928 - )

follow the money's picture

hmm,
how?

http://www.seattlepi.com/opinion/326303_traha...

"Bush tax cuts don't Pay for themselves"
by Mark Trahant/Seattle

by magic?

Handypants's picture

I got an email from Michelle asking me to sign a birthday card for Barack. There is a place for a personal message. My personal message was. . .

"End the wars, tax the rich and have a very happy birthday!"

:)


"I know that there are people who do not love their fellow
man, and I hate people like that!
" ~ Tom Lehrer (1928 - )

ysbaddaden's picture
)O(

If I were president I would create a new cabinet level position for dominatrix...


Diabolus est Deus Inversus

Handypants's picture
...

I dunno, if Michelle came with the title . . .


"I know that there are people who do not love their fellow
man, and I hate people like that!
" ~ Tom Lehrer (1928 - )

ysbaddaden's picture
)O(

Diabolus est Deus Inversus

ysbaddaden's picture
)O(

pence ain't worth a king's shilling...


Diabolus est Deus Inversus

How can anyone claim stopping the tax breaks for the most wealthy in this country at this time is a bad thing and do it with a straight face.


Say what you mean. Mean what you say. But don't say it mean.

mudshark's picture

Covered this last night on Countdown.
Apparently, It's illegal to continue with the Bush tax cuts.
It would have to go through Reconciliation to pass.
But, by going through reconciliation, it can't add to the deficit.
And it does. Therefore, they can't reimpose the bush tax cuts.
The GOp know all of this. They're just trying to score political points in an election year by saying this is a huge tax hike.
The Biggest In History!
They're lying.
Again.

Oh, I guess Lawrence O'Donnell is getting his own show soon. Bout time.


What is your conceptual, continuity?

Handypants's picture
...

I'd support an increase for the top 1-2% - even if it was the biggest in history. I bet there are many who would share my position.


"I know that there are people who do not love their fellow
man, and I hate people like that!
" ~ Tom Lehrer (1928 - )

mudshark's picture

But it's not a tax hike. It's a return to a previous tax rate.
It's the GOp trying to frame the debate again.
As far as the Estate tax goes, it's supposed to return to 55%, or so that's what I think.


What is your conceptual, continuity?

there was a long infocommercial style ad on staring Fred Thompson going on and on about the disasterous effects of letting Bush's tax cuts expire. He quotes Bernake on how stimulitive the cuts have been and how it would be disasterous for them to expire. Then there was a website etc... Anyhow,

With good ol' boy, common man, Fred Thompson (he's just the same as you and me) telling the ignorant how important it is to keep those cuts in place, expect all the moronic republicans to fall in lock step behind that view.

farscape1's picture

And I can tell you, without a doubt, that Republicans don't give a single thought to small businessmen.

Not a single proposal that would affect the small bussiness owner is supported by these fools unless it would benefit their corporate masters ten-fold.

Rich H's picture

Another struggling small business owner agrees with you.

Mugsy's picture

During "ThisWeek" last Sunday, Fox's Steven Hayes was part of the roundtable and made the same accusation.

Donaldson called him out on it: "Most small businesses are in the top three percent? Wrong! That's just wrong!"


* There are two types of Republicans: millionaires and suckers.
"Mugsy's Rap Sheet": Recording history for those who seek to rewrite it.

reluctant leader's picture

Pence knows not extending the Bush Tax Cuts will affect 100% of his buddies on Wall Street and the Business Roundtable.

And that's something Republicans cannot tolerate.

http://news.yahoo.com/s/ap/20100729/ap_on_bi_...

yeah...I thought their mantra was 'we need to help small business and repealing the tax cuts would hurt the small businesses..but..they can vote NO on it

I beleive the GOP position on average Americans and small businesses was made quite clear in their positions on helping the unemployed and the fisherman in the Gulf.


Vote GOP and move forward to the 18th Century.

marcb's picture

Pence is completely right. The taxes will go up for many small businesses.

Of course according to Republicans Intel and Raytheon are small businesses, just like McCain said. After all, they are both worth less than 50 billion, they must be small!
http://videocafe.crooksandliars.com/node/38438

If these guys want to make these claims, make them prove their statements instead of letting them lie.

Karyn's picture

is the goddamn media. They NEVER call these people out on it. And those who do: Schultz/ Olbermann/ O'Donnell/ and Maddow...aren't listened to by anyone but us.

Whaaa's picture

A repugnickun lying about something to do with policy, or money, or laws or ......??????????????
You must me sheeeeting me!!!!!!!!


"There is a principle which is a bar against all information, which is proof against all arguments and which cannot fail to keep a man in everlasting ignorance - that principle is contempt prior to investigation."

schultzbk's picture

This is classic Repug sleight-of-hand: Rebrand the scheduled rollback of W's disasterous tax cuts as "tax increases," the "largest tax increases in history"; and then claim that it won't hurt rich people but rather "small businesses."

God, it hurts my brain listening to these slimy bastards.


Beware of anyone promising a future full of yesterdays.

PinkyLeftBrain's picture

My corporation is what's known as a 'sub-S' and I will likely see a tax increase. We are potentially just over that line in the sand. Not happy about it, especially when the dioxin polluting chemical plant upstream gets tax refunds...


The problem with American politics right now is Republican extremism, and if you’re not willing to say that, you’re helping make that problem worse.

"that if the Congress fails to act, every American will see a tax increase on Jan. 1, 2011 and". And if Cogress acts will Pence filibuster?

we just think that raising taxes in the midst of the worst recession in twenty five years if a profoundly bad idea.
Was raising taxes after the great depression also such a bad idea? (Max. 95%)
What is the logic here? McConnell said the tax cuts need to remain in place for the economy to expand -- it is not expanding now, he adds. Why isn't it expanding? Tax cuts have been in place for almost 10 years and the job creation under Bush II was the most anemic since before Carter - only 3 million new jobs as compared to Clinton's 23.1 million - with a moderate tax raise (from 30 - 40%)


If you need funds to pay for essentials, you have a revenue problem
If you need funds to pay for frivolity, you have a spending problem

schultzbk's picture

If the tax breaks were so damn effective, how did we end up in the mess we're in right now? Isn't the fact that the tax breaks currently in effect AND we're still in recession tell these idiots anything? Oh right, keep doing what we're doing -- that makes sense.


Beware of anyone promising a future full of yesterdays.

getplaning's picture

is adopt the talking point that the Republican party represents 1% of the American population, and the Democrats represent the other 99%. That's it.

Now, the Democrats leave a lot to be desired, and the choice today seems to be between the Lesser of Two Evils. One party MIGHT send the country into another depression through its incompetence, but the other WILL send the country into a depression with malice aforethought.

Not to mention joining Israel in a war with Iran. THAT's how the Republicans would jump-start the economy.
Painful choice, but an obvious one.

Peter G's picture

why he can't be both bad at math and a liar. I don't think they are mutually exclusive.


Hasa Diga Eebowai

Scarabus's picture

The casualness with which the term “small business” is tossed around does everyone a grave disservice.

Let’s play George Lakoff’s little game. I say, “Quick! Don’t think of a small business!” In your mind’s eye you immediately see a small business. Now here’s where it get’s interesting: I ask you to describe what you’re seeing.

The great majority of persons would describe something like my friend Scott’s small deli, or the mom and pop optical shop where I get my glasses, or the hardware franchise with its 8-10 employees where I shop for nuts and bolts and shovels and such.

But compare that typical image to the U.S. government’s definitions of “small business”: http://www.sba.gov/contractingopportunities/o.... Couple of examples. Depending on the field a “small business” might…

• have 1000 employees
• do $35.5 million in business per year
• have a net worth of $175 million

No conscientious person should ever use the term “small business” without qualifying what she or he means by it.

pope307's picture

a lying Republican?! That Jansing let's this slimeball off the hook is just "rong". Especially, after she barbeques Anthony Weiner about his outburst at the Republican's for killing the bill for twin tower responders health care. There goes that liberal media again, eh?! Disgusting.

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