THE HOUSE TAX BILL

Here are highlights of the tax bill approved by the House:

Individual tax rates: Today’s multiplicity of brackets with rates ranging from 11% to 50% telescoped into four brackets with rates ranging from 11% to 38%.

Personal exemption: Increased from the current $1,040 to $2,000 in 1986, but effectively limited to $1,500 for taxpayers who itemize deductions.

Standard deduction: Increased to $2,950 for singles and $4,800 for couples, compared to the current zero-bracket amounts of $2,390 and $3,540.

Individual tax breaks: Two-earner deduction repealed. Mortgage interest on a first and second home still fully deductible, but other interest deductions limited to $20,000 per family. Dividend exclusion--$100 for singles, $200 for couples--repealed. Most other deductions, including for state and local tax payments, retained. Minimum tax beefed up and raised to 25%.

Retirement: Personal contributions to tax-deferred “401(k)” accounts limited to $7,000, and maximum contributions to individual retirement accounts reduced by $1 for each $1 contributed to a “401(k)” plan.

Corporate tax rates: Top rate reduced from 46% to 36%.

Business tax breaks: Investment tax credit repealed. Business write-offs for capital costs reduced. Only 80% of business meals and entertainment expenses deductible. Many specific preferences for industry reduced. Minimum tax expanded and boosted to 25%.