Amazon a better fit for Chicago than Des Moines

It will take promises of tax breaks to land internet retail giant

President Donald Trump changing his focus to tax reform after health care reform went south again and the price to pay to win the Amazon prize were among the topics for discussion with Democratic political consultant Porter McNeil and former Iowa State representative David Millage, a Republican, during an appearance on 4 The Record.

We're going to start with the tax reform proposal as we know it. Here are a few key points and changes from the existing structure: The current seven different tax brackets would drop to three tax brackets of 12 percent, 25 percent and 35 percent, with an option for Congress to add a fourth bracket.

Right now, the lowest rate is 10 percent and the highest is close to 40 percent.

The standard deduction for individuals and married couples would double to $12,000 and $24,000 respectively.

The corporate tax rate would drop from 35 percent to 20 percent and the alternative minimum tax along with the estate tax would disappear altogether.

Let's quickly point out how this would have impacted the president himself on the one tax return we actually saw that went public a few months ago from 2005.

He declared more than $150 million in income that year and, wound up paying $38 million in taxes because he fell into the alternative minimum tax calculation.

If that was gone like he's proposing now with the deductions he listed, Trump would have paid a little more than $5 million. That's a rate of less than 3 1/2 percent.

One early estimate from the committee for a responsible federal budget projects this framework would cost $2.2 trillion over a decade.

There are a lot of promises President Trump made that this would benefit the middle class and force the wealthy to actually pay more.
    
McNeil and Millage talked about where the health care debate goes from here and the benefits and possible pitfalls of landing Amazon.

Local 4 News, your local election headquarters, is proud to present 4 The Record, a weekly news and public affairs program focused on the issues important to you.  It's a program unlike any other here in the Quad Cities. Tune in each Sunday at 10:30 a.m. as  Jim Niedelman brings you up to speed on what's happening in the political arena, from Springfield, Des Moines, Washington, D.C. and right here at home.


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