Republican lawmakers proposed the most significant changes to the tax code in 30 years. Businesses big and small could see changes. And so could individuals. House Speaker Paul Ryan pledged action on the legislation. But the proposal ran into opposition almost immediately. Ylan mui tells us whats in the blueprint and where it might go from here. Reporter republicans call it the biggest overhaul of the tax code in a generation. The plan unveiled today creates four new individual tax brackets. The top bracket would remain at 39. 6 and it applies to households making over 1 million in income. The limit for 401 k contributions remains at 18,000. And homeowners will continue to be able to deduct their mortgage interest. However, the deduction for newly purchased homes will go down from 1 million to 500,000. As for the estate tax, it would double immediately from 5. 5 million for individuals to 11 million. However after six years the estate tax would go away completely. House Speaker Paul Ryan says these were the types of reforms that republicans were sent to washington to do. This it. This is an important and special moment for our country for all americans. Are we going to let the defenders of the status quo win and see our country continue down this downward spiral or are we going to realize the promise of our country, are we going to revitalize the american idea . This is our chance to make sure that generations to come dont just get by, they get ahead in this couny. Reporter for Small Businesses and socalled passthroughs, their rate will be 25 . Republicans say theyll write special rules to ensure its not just a big loophole for the wealthy. For corporations, theyre tax rate will fall from 35 to 20 . That will happen right away and it will be permanent. There will also be a special rate for foreign earningshat are brought back from overseas. The rate for repatriated cash is 12 , 5 rate for all other assets. But democr this proposal. House Minority Leader Nancy Pelosi says it only helps the rich and hurts the middle class. The ryan mcconne framework is not reform. Again, its deficit exploding, multitrillion dollar give away to the wealthiest and corporations delivered on the back of our children, seniors, and hard working americans. Reporter House Republicans delivered their plan to President Trump at the white ho today. They say he is all in on tax reform. But the hard work of getting this bill passed is only just beginning. For nightly business report, the proposed cap on some popular housing deductions not going over well with the housing industry. Shares of the luxury homebuilder Toll Brothers got hit quite hard, as it did other builders today. Home depot and lowes sha fell as well. Diana olick explains the plans impact on a market important to Many Americans housin reporter whether you own a home or are thinking of buying one, the republican tax plan will cost you more. One of the most popular deductions in the tax code, the mortgage interest deduction, got a haircut. Currently its capped at million in mortgage debt. That was cut in half, but only for new purchases. If you already own a home, youre still capped at 1 million. Still, there may be far fewer people itemizing and taking the deduction, given the doubling of the standard deduction, currently 21 of households claim the mortgage deduction. That could fal to just 4 according to the estimates from the tax policy center. Then to property taxes. The house plan capped them at 10,000. This will hit the northeast hard. New jersey, new york, connecticut, which have some of the highest tax rates and highest priced homes. It will hurt less for states in the south where property tax and home prices are low. Hawaii does have the lowest property tax rate and d. C. s rate is low as well. But home prices in both places are high, so its aixed bag. California has a comparatively low tax rate but home prices are some of the highest in the nation. Realtors say the plan puts home values at risk and the homebuilders say it will cut younger buyers out of the Housing Market. Our constituents are afraid that this is going to be a revisit of 1986, when after that tax bill passed, there was a significant housing recession. Reporter still others argue that doubling the standard deduction might put more money in lower income taxpayers pockets, helping them save for a down payment. The only trouble with that theory is there are currently precious few entry level homes for sale. For nightly business report, im diana olick in washington. What could the proposed tax plan mean for the economy and the Housing Market . Our guest is the chief economist at trulia. Josh fineman is with deutsche assemanagement. Welcome to both of you. Ralph, if i could, we left off with housing, the gentleman that diana interviewed said theyre worried about a significant housing recession as a result, if it passes as its written. Do you see that . What do you see in this bill specific to housing . At trulia were not immediately concerned theres going to be a large impact on housing. Thats for two reasons. One is that 70 to 80 of homeowners actually dont itemize. Their house isnt worth enough, and their mortgage isnt high enough. Property taxes arent high enough to itemize. And two, even if you do have a house thats expensive, you have a high mortgage, high property taxes, your going to be grandparented in. Existing owners wont be affected that much. But there is some bad news, which is that those that do have high mortgages tend to live in these expensive markets. Right. On top of that, theyre inntivized because of the grandparent clause to stay put. And that we think might actually make the inventory problem worse, especially in these very expensive coastal markets. What does it do, ralph, t house values, particularly in high priced markets where affluent buyers are prone to some of them are going to have to take out loans above 500,000 to pay for it . We might see a little bit of softening in those uber expensive markets. San francisco, new york, you know, there are going to be disincentives to buy those types of housing and because of the property tax, there may be existing owners that might want to get out because their tax liabilities are going to go up. Lets turn to where s finema and talk about the overall economy. Josh, feel free to react to what ralph just said, but also, if it passes as its written now, what the effect might be on the overall economy. Sure. I dont think its a game changer, i dont think its going to push growth up to 3 or 4 and keep it there. I do think it has some positive elements. In particular, in a lower rate, broadenthebase type approach, you lower the rate on businesses and corporations, so you increase the incentives to earn. At the same time, if you reduce exemptions, you broaden the base to which those tax rates apply. Giving people lower taxes, thats the easy part, right . Thats like giving them ice cream. But taking away deductions, exemptions, exclusions, thats the hardpart. Thats like making them eat broccoli. And people are not going to like that. And thats where the opposition to this tax thing is going to fall. Housing is an example, you talked about earlier on the show. So how its all going to work out and whether, you know every constituency will go to the mat to defend the specific line item in the tax code. So its going to tough. In the end, whether theres enough sugar here to make the medicine go down, i dont know. But well see. Today isust the first opening salvo in what i think is going to be a longdrawnout josh, a Quick Response please on the Corporate Tax rate coming down, presumably to 20 right. How important is that in helping american corporate competitiveness and in inducing companies that may have domiciled overseas to move here or move back here . I think its helpful. I think it does improve competitives, it improves the incentives to invest. Some of the more grandiose, you know, numbers that weve been talking about, 9,000, i think thats over the top. But you do think some of the incidents of the Corporate Tax does fall american workers. If you do reduce that tax rate, they will get some benefit, at least over time. But, you know, not as much as maybe has been advertised. Ralph, you get the final word here. In indeed we start to see some reaction in the Housing Market, how does that work . Would you start to see a softening or a tightening immediately, very quickly . Is there a lag time . Yeah, i mean, the Housing Market moves slow. Theres unlikely to be any major movements, you know, in the first four or five, six, seven months, even 12 months, right . But over time, especially at that high end which is where most homeowners would be impacted, we might start to see softening, maybe over the next one to two years. So nice to see you in studio, and also josh, nice to see you as well. Thanks for joining us, both of you. How could the proposed tax plan impact your money . Tim mawer joins us to discuss that. Have you had a chance to go over the numbers and just sort of come down on do most people, and particularly most middle income people, stand to see lower tax bills under this law than they would ha well, to answer your first question, i have taken a glance. But i will say this. At this point in time its all commentary still. I dont want to encourage anyone to alter their Financial Plan based on a rumor. S wait and see what the reality shakes out to be and then well plan from there. Certainly, especially for the middle income folks, we could see a meaningful change. If you were in, say, the 50,000 per year income level, seeing the standard deduction double cant help but help you. Similarly, they may find that their Tax Compliance with doing their taxes is simplified, its easier because of that increased standard deduction. Now, if youre in the next income bracket up, folks who do have a home, who do have a mortgage, who might have been itemizing their taxes in the past, especially because of the mortgage interest deduction, well, now with the standard deduction, now raising quite so substantially, we may see they no longer have the ability to itemize. And that may begin to change regarding debt. Ecisions in the past its been seen, owning a home and having a mortgage is a good thing because you get a tax break. Theres a little conflation there to begin with. We may find people are making decisions with more when clarity regarding housing and debt as a result of that increased standard deduction. Right. Theres going to be negotiating on this, on the hill, probably some pretty significant negotiating. But one thing that we were wondering about was whether or not they would change the status of 401 k contributions. They did not in this version of the bill. But the word is that that may be one of those bargaining chips in order to perhaps raise the mortgage interest deduction. So are you worried about tha i am concerned about that. As you can imagine, those of us who are financial advisers, if we start to see them mess with the 401 k deductions, were going to be very concerned, because what we see right now is generations of americans who are underprepared for retirement. If we decrease the incentive for them to be saving for the future, i cant see what good can come from that. Im hoping they keep their hands off 401 k , roth ira, traditional ira limits. Tim mawor, thank you again. Thank you. On wall street, a late day rise in stocks sent the dow to a record close. Versus are also looking ahead to tomorrows jobs report. The nasdaq fell 1. 5 points and the s p 500 rose fractionally. Apples flagship product continues to charge up profit, thats ahead. President trump has nominated current fed governor Jerome Powell to be the head of the fed bank, where he would help steer the worlds biggest economy. His words could move trillions of dollars in global markets. Steve liesman tells us where he is and where he stands. Reporter President Donald Trump in a rose garden ceremony nominated Jerome Powell to be the 16th chairman of the Federal Reserve bank, by far the most important economic nomination of the president s term to date. Hes strong. Hes committed. Hes smart. And if he is confirmed by the senate, jay will put his considerable talents and experience to work, leading our nations independent central bank, which has the critical responsibility to set Monetary Policy and monetary our Banking System as whole. Reporter powell, a fed governor since 2012, previously amassed a fortune working as an investment banker. Hes the first chairman not to hold a ph. D. In economics since paul vcker left in 1987. Powell praised outgoing fed chair janet yellen but stopped short of explicitly pledging to continue her policies. Ive had the distinct privilege to serve under chair bernanke and chair yellen who guided the currency through difficult times. Monetary policies matter for American Families and communities. I share that sense of mission. Reporter markets arent expecting much change at all. Powell supported a gradual rise in interest rates, voting with fed chair janet yellen at every turn. Hes generally supported the banking regulations adopted after the financial crisis but has said some adjustments are appropriate. He believes the current economy to be strong and the labor market to be very strong. Powell, a 64yearold washington native, was originally nominated by president obama. White house hopes for hearings before christmas and quick approval after the holiday break. They believe powell will receive democratic support as he did under psident obama. Im Steve Liesman in washington for nightly business report. Apples earnings would be our lead story on almost any other night. Lets get right to the results of the worlds most valuable publicly t company. Strong demand for iphones helped the Company Earned 2. 07 a share. That handily beat estimates. Revenue rose for the Fourth Quarter to more than 52 billion, helped by a rise in sales in china. Investors liked the results and the forecast of record revenue in the current quarter, sending shares initially higher. Thecompanys market cap hitting 900 billion in late day trading. Josh lipton has more on appl reporter 46. 7 million. That was one big number in apples latest earnings report. It controvero the number of iphone units shipped in the quarter, better than what analysts had called for. Another big number in this report was this december revenue guidance that apple gave, callg for between 84 and 87 billion. The midpoint of that guidance is better than what the street had model , alleviating some concerns about supply constraints for the all new iphone x which goes on sale tomorrow. Im josh lipton, cupertino, california. The government may reportedly sue to block time warner and at ts proposed merger. That is where we begin tonights market focus. The wall street journal says the doj may try to block the 85 billion tieup. The article went on to say that at t, time warner, and the doj are in talks to lay out terms that would let the deal win government approval. But specification that a deal wont happen pressured shares of both companies today, as you see there. At t fell 1 to 37. Time warner off nearly 4 to 94. 70. Dowdupont posted better than expected earnings and said it would cut jobs as part of a 3 billion cost savings plan. The industrial conglomerate which was formed in september by the dow chemical dupont merger said results were helped by strength in nearly every division. The company said its plan to split look at three separate companies willo two years. Dowdupont is hiking its quarterly dividend, launching a 4 billion share buyback. Shares were off almost 2 to 72. 04. The Worlds Largest generic drug maker Teva Pharmaceuticals will cut its forecast for the third time as rising competition eats into profits. The Company Reported a plunge in generic drug profits as sales slipped. Shares hammered down 20 to 11. 23. Wayfair reported a wider than expected loss as new employee hires and a rise in Technology Investments weighed on its results. But the Home Furnishings company also saw a rise in active customers and said they spent more as well. Shares still fell, more than 15 to 62. 84. Despite serving more customers in the latest quarter, starbucks reported same store sales andotal revenue that missed expectations. Earnings were in line with estimates and the coffee chain said it plans to sell its tazo tea brand to unilever for about 400 million, following the after the bell news shares initially fell in the extended session. And also ended the regular day down a fraction to 54. 87. The president is preparing for his First Official trip to asia. The 11day journey includes stops in japan, south korea, china, vietnam, and the philippines. The president will be on the global stage discussing some very thorny economic and security issues, including of course north Koreas Nuclear threat, trade imbalances, and Market Access for u. S. Companies. 29 Business Leaders and officials will join the president in china, including executives from goldman sachs, boeing, general electric, honeywell, and qualcomm. And theres one more item that Many AmericanBusiness Owners hope will be on the president s agenda when he is in china, and it is intellectual property theft. That type of copycat theft costs an estimated 300 billion annually. Kayla tausche reports. Reporter outside baltimore, marlon molds wire from indiana and illinois into storage racks, baskets and deep prifriars. The wire used to be a car or dishwasher melted down. Its all recycled, made in america. Reporter these seemingly simple products require complex engineering. Marlons ceo drew greenblatt began seeing his items in google searches