This week, the “Big Six”— which consists of Trump Administration officials and GOP leaders in Congress—released a framework for tax reform. The document is meant to guide the tax writing committees in the House and the Senate as they begin to hold hearings on tax reform and draft specific legislative proposals.

For the individual side of the tax code, the framework would cut the current seven tax brackets into three—12%, 25% and 35%—while also leaving the door open to add an additional top rate for the highest-income taxpayers to ensure that the wealthy do not contribute a lower share of taxes than they currently pay. The framework would also double the standard deduction and enhance the child tax credit. It would also eliminate most deductions except for the mortgage interest deduction and the charitable deduction, but the framework leaves the door open to make changes to both and provides very little detail on other deductions. The framework also calls for eliminating the estate tax and the Alternative Minimum Tax. While this document does not mention any specific changes to retirement savings vehicles, it does leave open the possibility for potential tax code changes in this area as well.

On the business side of the tax code, the framework would lower the corporate rate to 20%. The framework would also set 25% as the maximum tax rate applied to the business income of small and family-owned businesses organized as sole proprietorships, partnerships and S corporations. The framework also instructs the tax writing committees to come up with “measures” to prevent gaming the system and characterizing personal income as business income. There is some ambiguity surrounding which pass-throughs would qualify for this new rate, but the Big “I” will be heavily engaged on this topic and expects this area will be fleshed out more once the tax writing committees begin to hold hearings.

The tax reform document is still only a broad framework and plenty of details still need to be worked out. Congress is expected to begin holding hearings this fall with the stated goal of congressional passage by the end of the year.

Wyatt Stewart is Big “I” senior director of federal government affairs.