A Michael Scott Racist is a generally well-intentioned person who tries so hard to be politically correct and to demonstrate that they are not racist that they show themselves to actually be racist. Named for Steve Carell's character on The Office who made a habit of being this.
Oscar: Both my parents were born in Mexico. And they moved to the United States a year before I was born. So I grew up in the United States. My parents were Mexican.
Michael Scott: Wow. Wow. That is... That is a great story. That's the American dream right there, right? Um, let me ask you, is there a term besides "Mexican" that you prefer? Something less offensive?
Kate: I'm not racist. I love all races, but especially Asians because although they're not great drivers, they really know how to run a buffet.
John: You're a Michael Scott Racist.