FactCheck: McCain's Small-Business Bunk

He claims 23 million small-business owners would pay higher tax rates under Obama. He's wrong. The vast majority would see no change, and many would get a cut.

Summary

McCain has repeatedly claimed that Obama would raise tax rates for 23 million small-business owners. It's a false and preposterously inflated figure.

We find that the overwhelming majority of those small-business owners would see no increase, because they earn too little to be affected. Obama's tax proposal would raise rates only on couples making more than $250,000 or singles earning more than $200,000.

McCain argues that Obama's proposed increase is a job-killer. He has a point. It's true that increasing taxes on those at the top would leave them less money for other purposes, including investment and hiring in the case of business owners. But the number of business owners who would see their rates go up would be only a small fraction of what McCain says. Many would see their taxes go down.

Analysis

Sen. John McCain has been making this false claim over and over, starting with a July 7 speech announcing his "jobs for America" plan: