Why it matters: It’s the first glimpse of the tax reform plan agreed upon in secret between the “Big Six” congressional leaders and administration officials. It forms the starting point of the tax reform process, which will play out over the coming months.
The big change: The GOP leaders and the White House plan to cut the top tax rate for small businesses — known as “pass-throughs” — from 39.6 percent to 25 percent. (Currently small businesses pay the same tax rates as individuals, and this puts them at a disadvantage to larger corporations, which pay lower rates.)
The so-called “Big Six” tax framework — named because it’s been hashed out behind closed doors between six top Republicans and administration officials — will set up a clash with Democrats over the tax breaks that apply to large corporations and upper income Americans.