Top GOP tax-writer to testify on reform next week

The latest draft included two potential ways to simplify rules for so-called pass-through entities – businesses that pay taxes through the individual code.

One proposal would put into place a single set of rules for S corporations and partnerships, two types of pass-throughs that currently have very different tax rules. The other proposal would give corporations more incentive to become pass-throughs.

The draft also includes a permanent tax break for deducting the cost of equipment, and allows small businesses to use simpler accounting rules.

Small-business groups like the National Federation of Independent Business have so far given high marks to Camp's draft.