"Bush said most small-business owners, who account for the majority of jobs in the country, file as individual taxpayers and that increasing their taxes would hurt those adding people to the payroll.
more...."
The definition of small business being used in this claim seems to be:
http://www.sba.gov/size/summary-whatis.htmlA Small Business is one that
is organized for profit;
has a place of business in the United States;
makes a significant contribution to the U.S. economy by paying taxes or using American products, materials or labor; and,
does not exceed the numerical size standard for its industry.
The business may be a sole proprietorship, partnership, corporation, or any other legal form.
In many industries, a "small business" can employ up to 1500 people by this definition. For example:
"Manufacturing – For approximately 75 percent of the manufacturing industries, the size standard is 500 employees. A small number have a 1,500employee size standard and the balance have a size standard of either 750 or 1,000 employees."
There can be exceptions as well, so some companies can be considered "small businesses" that employ more than 1500 people.
So, we are not talking about the corner grocery here, in the vast majority of cases.