The Tax Cuts and Jobs Act would lower the corporate tax rate from 35 percent to 20 percent and collapse the seven tax brackets paid by families and individuals down to four. It could create giant new benefits for the wealthy, cutting business taxes, eliminating the estate tax, and ending the alternative minimum tax. . .

It would cut in half the popular mortgage interest deduction used by millions of American homeowners, capping this tax deduction at new mortgages of $500,000 or less. Presently, Americans can deduct interest on mortgages of up to $1 million from their income.

This change could have a particularly big impact on high cost areas, such as San Francisco, New York, Boston, and the Washington D.C. area, and housing groups and lawmakers will likely try to defeat it. The bill would allow people to deduct their local property taxes from their taxable income, though this benefit would be capped at $10,000.