Will Obama’s Tax Policy Create 21 Million New Lucrative Small Businesses?

Bloomberg must think so as they reported the following from McCain as a fact:

McCain, in his speech, said small business is crucial to creating jobs “in this very tough time” for the U.S. economy. “I intend to keep the current low income and investment tax rates,” he said. “And I will pursue tax reform that supports the wage-earners and job-creators who make this economy run.” He said Obama’s plans would subject 21.6 million small- business owners to income-tax increases.

This bothered Media Matters who correctly state:

according to the nonpartisan Tax Policy Center, only 481,000 small businesses fall into the tax brackets that would be affected by those increases.

That’s now but could it be that the impact of Obama’s tax proposal might just be to create an additional 21 million new small businesses? Talk about “creating jobs”! Paul Krugman has so more fun with the lies of McCain and the gullibility of the press:

Year after year we’ve seen the Bush administration play childish games with the numbers; my favorite was the claim that cutting the tax rate on dividends was a gift to senior citizens, because the benefits would go disproportionately to people over 65. The reason, of course, is that most very rich people are also old. So John McCain makes a typically Bush-like conflation: there are 21 million small business owners; there are small business owners in the top two tax brackets; therefore, Barack Obama plans to raise taxes on 21 million small businesses.

Don’t despair Paul – McCain’s mendacity is writing all sorts of jokes for us. Alas – MSM seems to have no sense of humor.