Small Business Redefined to Blunt Arguments Against Tax Hikes

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The Obama administration crafts a new weapon for its arsenal to counter accusations that it wants to raise taxes on small businesses, producing a new definition of small business that could blunt Republican attacks. Using its own definition of what a small business is, rather than the Small Business Administration's, Treasury says fewer than 3 percent of small businesses—about 600—would see any tax increase at all if tax rates were allowed to rise on individuals earning more than $200,000 per year. Congressional Republicans say the proposed redefinition appears to be fitting a little too nicely into Democratic talking points defending the expiration of the tax cuts for top earners.