You have some confusion here. There is not a separate tax rate, lower or otherwise, for pass-through income of this sort. "Pass-through" simply means that an owner's share of income and expenses "passes through" to their personal tax return, rather than the business paying taxes on these amounts. I suspect you are confusing this with the 20% Qualified Business Income deduction, which does indeed apply to owners of pass-through entities. Hope this helps!
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