The author of the article overlooks an essential point: yes, the small business tax rate is quite low, but no human is allowed to enjoy the income at that tax rate (legally, that is).  As soon as the owner withdraws the money for his/her own use, having paid the small business tax rate, he or she must then pay personal income taxes on that money.  The combined set of taxes are designed such that the overall rate is no different than a regular employee's marginal tax rate.