President Trump has repeatedly said that he will cut corporate taxes down to 15%. But most small businesses are in the form of S-corps- partnerships and limited liability corporations (LLC). In response to this, the two plans propose three tax brackets- 12%,25%,and 33%. And to repeal the Net Investment Income Tax (NIIT)- which, according to the IRS, " applies at a rate of 3.8% to certain net investment income of individuals, estates and trusts that have income above the statutory threshold amounts."
With the Trump plan,businesses will be able to elect a max rate for business income at 15%. "The Blueprint" allows for 25%. According to Entrepreneur, "small business owners could realize a savings of up to 28.4 percent on their K-1 income from the companies they own."