WASHINGTON- The Dow Jones Industrial Average (DJIA) closed at a record high Friday while the other two major stock indexes witnessed modest gains.
The Dow closed at 23,539.19 (+0.10%). The S&P 500 closed at 2,587.84 (+0.31%) and the NASDAQ closed at 6,764.44 (+0.74%).
Apple on Friday released its iPhone X. The company’s stock rose nearly eight points from its previous close and according to many market analysts is in part responsible for the week’s unprecedented rally. The phone costs more than $1,000.
The positive economic forecast got a significant boost Thursday as House Republicans unveiled the most comprehensive tax reform plan since the Reagan Administration.
The Tax Cuts and Jobs Act proposes $5.5 trillion in tax cuts over the next decade.
The maximum corporate tax rate would be reduced from 35 percent to 20 percent. The existing seven income tax brackets would be consolidated into four.
Pass-through taxation would be reduced from 35 percent to 25 percent and the estate tax would be eliminated.
The child tax credit would increase from $1,000 to $1,600.
Taxation of retirement plans would be eased so as to defer taxation on hardship withdrawals, which are often made when people lose their jobs.
Investment income is not affected by the legislation.
Democrats argue that the plan would disproportionately benefit the wealthy as well as increase the deficit by $1.5 trillion.