The song is by some presumably terrible conservative song parodist named "Weird" Paul Shanklin (j/k his real nickname is "Racist" Paul Shanklin), and Chip mailed it to all the RNC members whose votes he needs to lead the committee, and then the dreaded MSM got word of it and, yes, sorta misrepresented the whole thing, or at least oversimplified it, and now the kings of backlash politics will ride the derision of the elites to victory, again.
This November everyone declared the GOP dead, forever. They became a stupid useless rump party, representing only racist white people in the old Confederacy and angry white militia members in Oklahoma and Texas and Montana. How will they ever win an election again, now that only white males vote for them? They'd have to modernize and liberalize and stop loving God and hating Gays so much, that's how! Well, that's all bullshit, and the future of the party remains in the hands of puffy white drawling southerners allied with slimy rich businessmen Mormons. Yes, Mike Huckabee, charming friendly gay-hating bigot with a pretty good sense of humor, and Mitt Romney, android rich person with 500 square-jawed sons, are perfectly legitimate party leaders and the GOP will do just fine doing what they've been doing for 40 years—stoking class and racial resentments, fear-mongering, hating queers and taxes, we all know the drill.
Besides, the stupid song itself is obnoxious because it reappropriates a leftist critique of culture for nefarious purposes, not because it has the word "negro" in it. It's only "racist" so far as it assumes all of Obama's appeal stems from this racist archetype and not from his own qualities as a remarkable person. And because it's right-wing white people using the word "negro" but they're really only doing it to get a rise out of people, and it worked, and that's why Chip Saltsman will be the next leader of the Republican National Committee.