Grapevine: Strip club claims it's tax exempt

Will court count lap dances as a form of art?

And now some fresh pickings from the Political Grapevine...

He Said, She Said, He Said

It looks like Democratic National Committee Chairwoman Debbie Wasserman Schultz has come out on the wrong side of a he said, she said, he said.

After the Washington Examiner reported some of her comments about Israel and Republicans, Israeli Ambassador Michael Oren said she was categorically wrong.

The DNC chief then claimed it was actually the reporter who got her stance on Israel and the Republicans wrong which she explained to Shepard Smith Tuesday night.

(START VIDEO CLIP)

DEBBIE WASSERMAN SCHULTZ, DNC CHAIRWOMAN: I didn't say he said that and unfortunately that comment was reported by a conservative newspaper, not surprising that they would deliberately misquote me.

(END VIDEO CLIP)

There's only one problem though, the Examiner released audio of her saying exactly what he said that she said.

(START AUDIO CLIP)

WASSERMAN SCHULTZ: We know, and I've heard no less than Ambassador Michael Oren say this, that what the Republicans are doing is dangerous for Israel.

(END AUDIO CLIP)

Day By Day

As Carl Cameron alluded to earlier, the California Democratic Party chairman has also had a pretty tough week.

First, John Burton compared Republican campaign maneuvers to the big lie tactics promoted by the Nazis.

Republicans balked and Burton issued a statement saying he humbly apologized to anyone offended.

He then left the convention for a -- quote -- "pre-scheduled root canal" in California.

Revealing Case

Finally, an upstate New York strip club is trying to convince the state's highest court that its nude lap dances are "art" and should be tax-exempt.

So far, the state tax department and appeals court disagree.

They want Nite Moves to pony up the $124,000 it owes in taxes.

The club is relying on a cultural anthropologist who has studied exotic dance and visited the establishment.

The court typically takes a month to make a decision.