The Center on Budget and Policy Priorities released an analysis this past Friday afternoon examining the impact of tax cuts for high-income households. In particular, the analysis attempts to understand the impact those tax cuts would (or would not) have on small businesses. CBPP used a broad definition of small business in their analysis when they looked at the impact of increasing the top two marginal tax rates, retaining the estate tax, and closing the carried interest loophole. The paper concludes: Claims that changing the top income tax rates, maintaining a viable estate tax, or eliminating the carried interest tax loophole would harm small businesses are either exaggerated or empty. The data clearly show that only a very small proportion of small businesses are affected by these tax policies. (The carried interest rules may not affect any small businesses at all.) This is true even when one uses an overly broad definition of "small business" that classifies substantial numbers of high-income taxpayers as "small-business owners" because they receive some income from passive business investments. BIG MISCONCEPTIONS ABOUT SMALL BUSINESS AND TAXES