that's probably a compelling narrative for bachmann -- big government taxes the little guys. we first fact-checked similar claims during the 2008 election, when samuel joseph wurzelbacher, aka joe the plumber, worried he'd get a tax increase under obama's plan if he bought a company that took in around $250,000 a year.
it wasn't true then, and it isn't true now. here's why: plumbers -- or any other small business owner -- get to deduct their business expenses, so they'd have to be bringing in more than $250,000 in gross sales. the tax laws allow small business owners to deduct all kinds of business expenses: employees' pay, supplies, a car or truck, fuel costs, advertising, association dues, utilities, shop repairs, and the list goes on. (for more details, read chapter 8 of the tax guide for small business published by the irs.)
i think what gets lost in the noise about progressive taxation is this simple behavioral incentive. progressive taxation tends to encourage innovation through the very real phenomenon of encouraging business investment. (these activities are all in essence deductible. tax cuts at the very top encourage hoarding. (we had a real life experiment around this very issue. jobs boomed during the clinton era simply because money was actively invested. bush tax cuts yielded negative job growth and declining incomes for the middle class.) iow progressive taxation makes productive investment "cheaper" than hoarding behaviors and thus incentivizes economic performance.