The first part of Trump’s proposed plan will overhaul the personal income tax brackets. As it currently stands, there are 7 tax brackets, ranging from 10% to 39.6% at the highest income threshold. Trump’s proposed plan shrinks the number of tax brackets from seven to three, with the lowest being 12%, the median at 25% and the highest capping itself at 33%. In general, this will yield substantial tax savings for both the wealthy and the working middle class on their ordinary income (income from wages and interest). Under the current tax law, this would favorably impact most small business owners and startups that are taxed as flow through entities (i.e. LLCs, S-Corps and Sole Proprietorships). However, the big wrinkle in Trump’s proposal is the potential that business income from flow through entities that is currently taxed at the individual rates may now be taxed at preferential business rates.