Here's what's in the tax bill the House just approved

Show Caption Hide Caption GOP tax bills: Senate vs. House There are a lot of differences.

The House approved a sweeping overhaul of the tax code crafted by the Republican majority on Thursday. The Senate is working on a different plan that could come up for a vote after Thanksgiving, and both measures would must be reconciled before they could be sent to President Trump.

Here are highlights of what the House approved:

For individuals

• The current seven brackets would be compressed to four: 12%, 25%, 35% and 39.6%.

• The bottom rate would increase from 10%, but sponsors say people in 10% bracket this year would owe no tax next year.

• The top rate would apply to couples whose income exceeds $1 million, compared with $470,700 now.

• The standard deduction for a married couple would increase from $12,700 this year to $24,400 next year.

• Personal exemptions, this year worth $4,050 each for taxpayers, spouses and children, would be eliminated.

• The child tax credit would be increased from $1,000 to $1,600, and be available to couples earning up to $230,000, up from $110,000 now.

• A new credit of $300 each would be created for taxpayers, spouses and adult dependents, though it would expire after five years.

• The plan would eliminate the Alternative Minimum Tax, and, by 2024, eliminate the estate tax.

• Deductions for state income taxes, medical expenses, mortgage interest on second homes and other expenses such as disaster losses, tax-preparation fees and teachers' costs for classroom supplies would be eliminated.

• Taxes on alimony would be charged on the person paying it, rather than the person receiving it.

• The property tax deduction would be capped at $10,000.

• The limit on the mortgage interest deduction for those who itemize would be lowered from $1 million now to $500,000 for new loans.

• Charitable contributions could still be deducted by those who itemize.

Business changes

• The top corporate rate would drop from 35% to 20% next year.

• The United States would move to a system that only taxes the domestic income of companies based here, rather than their global income.

• Those who report business earnings on personal rather than corporate returns, such as sole proprietors or people in partnerships, would get a new 25% top rate for some of their income.

• For the next six years, business expenditures for new equipment could be written off all at once, rather than be amortized over a number of years.

• The business deduction for interest on purchases would be sharply curtailed.

• The deduction for lobbying local governments would be repealed.

• Companies could continue to deduct business-related state and local taxes.