Stocks Under Pressure After GOP Releases Tax Plans, Time Warner Tumbles
Stocks fell earlier this morning after details emerged on House Republicans' plans for tax reform. However, by midday, the S&P 500 and Nasdaq were lower, while the Dow recovered to trade slightly higher.
The GOP proposes permanently cutting the corporate tax rate to 20% from 35% and slashes the number of tax brackets to three, while keeping a top rate of 39.6% for high earners.
Republicans also cut the threshold for taxable income on mortgages in half, sending homebuilder stocks into a tailspin. D.R. Horton Inc. (DHI) - Get Report , Toll Brothers Inc. (TOL) - Get Report , and Lennar Corp. (LEN) - Get Report were sharply lower, while Home Depot Inc. (HD) - Get Report weighed on the Dow.
Time Warner Inc. (TWX) plummeted on reports the DoJ might sue to block a purchase by AT&T Inc. (T) - Get Report . A lawsuit could be filed on antitrust grounds. The deal had been expected to close by the end of the year.
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