I have no idea why no one else ever fact checks this garbage, but I always will:

BIDEN: Well Gwen, where I come from, it’s called fairness, just simple fairness. The middle class is struggling. The middle class under John McCain’s tax proposal, 100 million families, middle class families, households to be precise, they got not a single change, they got not a single break in taxes. No one making less than $250,000 under Barack Obama’s plan will see one single penny of their tax raised whether it’s their capital gains tax, their income tax, investment tax, any tax. And 95 percent of the people in the United States of America making less than $150,000 will get a tax break.

Now, that seems to me to be simple fairness. The economic engine of America is middle class. It’s the people listening to this broadcast. When you do well, America does well. Even the wealthy do well. This is not punitive. John wants to add $300 million, billion in new tax cuts per year for corporate America and the very wealthy while giving virtually nothing to the middle class. We have a different value set. The middle class is the economic engine. It’s fair. They deserve the tax breaks, not the super wealthy who are doing pretty well. They don’t need any more tax breaks. And by the way, they’ll pay no more than they did under Ronald Reagan.

IFILL: Governor?

PALIN: I do take issue with some of the principle there with that redistribution of wealth principle that seems to be espoused by you. But when you talk about Barack’s plan to tax increase affecting only those making $250,000 a year or more, you’re forgetting millions of small businesses that are going to fit into that category. So they’re going to be the ones paying higher taxes thus resulting in fewer jobs being created and less productivity.

This simply isn’t true, and since it is the key to Republican class warfare, it can’t go unchecked. Companies, small or otherwise, are taxed after expenses, not before. When you raise taxes on people earning $250,000, you’re not jamming up the guy who owns the local tavern. Because even if his business produces, say, $500,000 in annual revenue, he deducts his labor costs, (bartenders, cleaners, security) his cost of goods sold, (beer, wine, liquor, food) utilities, rent, advertising, office supplies, etc. So yeah, the business brings in a lot of money, but if the owner only clears $75,000/year, he isn’t taxed as if he were rich. Small business or not, income is income. Lumping him in with Wall Street executives who make half million dollar salaries is disingenuous, and claiming that he will create less jobs because rich people might pay a bit more in taxes is just a lie.