Rand Proposes Billion Dollar Free Market Stimulus Plan for Detroit

[Matt Collins]

Press release:





Sen. Paul Proposes Billion Dollar Free Market Stimulus Plan for Detroit




WASHINGTON, D.C. – Sen. Rand Paul today presented a plan to the Detroit Economic Club that provides depressed or bankrupt areas with new economic opportunities. The Economic Freedom Zone Act of 2013 (http://www.paul.senate.gov/files/documents/EconomicFreedomZones.pdf) removes the shackles of Big Government by reducing taxes, government regulations and burdensome union work requirements. These zones will apply to any zip code with unemployment greater than one and a half times the national average. Economic Freedom Zones will dramatically reduce taxes and red tape so that families and businesses in Detroit and cities like it can grow and thrive. The answer to poverty and unemployment is not another government bailout; it is simply leaving more money in the hands of those who earned it. The Economic Freedom Zones Act of 2013 will do just that.


CLICK HERE TO WATCH SEN. PAUL DISCUSS THE ECONOMIC FREEDOM ZONE ACT OF 2013 (https://www.youtube.com/watch?v=6hZqoxmyow8)


https://www.youtube.com/watch?v=6hZqoxmyow8

[RickyJ]

Why Detroit? They aren't the only city suffering at all. Does Rand really know how bad the economy really is in the USA? Or is he just running for president?

[Tod]

good lord, this is so distasteful.

[mwkaufman]

Why Detroit? They aren't the only city suffering at all. Does Rand really know how bad the economy really is in the USA? Or is he just running for president?

It's not just Detroit, it's all areas with >12% unemployment or so.

[William R]

Good for Rand !!!!! The Jack Kemp of the GOP

[Neil Desmond]

Good for Rand !!!!! The Jack Kemp of the GOP
LOL! What? Kemp was GOP.

Do you mean something like the new Jack Kemp of the GOP?

[rp08orbust]

Good. Gradually lower the unemployment threshold for qualifying as an economic free zone to zero until the whole country is free.

[Bastiat's The Law]

Good. Gradually lower the unemployment threshold for qualifying as an economic free zone to zero until the whole country is free.

Yup. One jurisdiction at a time if we have to.

[mrsat_98]

Plus rep for Rand Paul.

[Origanalist]

Some animals are more equal than others.

[Shane Harris]

This is a good idea. Hell I'd move to Detroit with a 5% income tax. This also has the potential to be very successful and before you know it everyone will want to copy this model (I'm guessing thats the plan, providing it passes).

[Schifference]

This is a good idea. Hell I'd move to Detroit with a 5% income tax. This also has the potential to be very successful and before you know it everyone will want to copy this model (I'm guessing thats the plan, providing it passes).

It doesn't matter if it passes or not. When running in 2016 he can say,"In 2013 when Detroit was going into bankruptcy I proposed xxxx and instead we did yyyy. As president I will make every jurisdiction with an unemployment rate of 12% or greater........."

[SilentBull]

This is a tremendous opportunity to show the country that the GOP does have ideas; alternatives to the socialist ideas of the left. It's pure genius.

[juleswin]

Why Detroit? They aren't the only city suffering at all. Does Rand really know how bad the economy really is in the USA? Or is he just running for president?

His solution is not for Detroit alone. He just says that Detroit is the epicenter of the crisis and something else about being politically advantageous to tackle Detroit

[FSP-Rebel]

In case anyone wasn't aware yet, Detroit officially went bankrupt last week per a judge's ruling. That's why Detroit is the focal point and his free market stimulus plan is proposed to nip the progressives' federal bailout plan in the bud and draw favor for republican plans, albeit a more libertarian republican plan. Rand skipped over DC initially and took his plan straight to the hood and is likely improving his profile amongst the business community.

The other thing I'd like to point out about this plan is that it obviously helps those willing to work for improvement but doesn't aid those (bureaucratic pension holders) that fed off the sinking ship in said areas and did nothing to correct those in charge that fucked everything up. A bailout from on high would surely go to patch up these AFSCME pension funds and do next to nothing to improve the future lot of the regulars in town that got caught up in their mess. This is a great way to drive the media because it could be something that can pass the House and get lots of attention, even from those that aren't politically astute but just intrigued by what's going to happen in a city like Detroit going forward. Furthermore, it will force the progressives to play ostrich and look terminally retarded yet adding another layer of armor to Rand and his version of republicanism inside the GOP for the midterms and beyond.

[FriedChicken]

I like this idea. It needs more marketing me thinks though but the more I ponder it the more exciting it would be if it went into effect. Imagine those areas going from worst to best. ESPECIALLY if they started rivaling tax revenues of other states so then there is literally no argument against it.

It would be a great model to point to and say it should be nation-wide policy.

Obviously I think this should already be nation-wide and it does kinda rub me that the most irresponsible places in the US are being given this relief while the more responsible places are stuck with the higher taxes (almost like a punishment?) and many will see this as, in a way, a subsidy for the qualifying zip codes.
So I agree this is very far from ideal. However its a chance for at least some to gain more economic freedom and prove that it is healthy for the nation.

From a selfish view: Maybe it will work its way to the place I live.
From a selfless view: Even though I'm still burdened at least others in this nation have a chance at relief.

Either way it is potential step towards economic liberty.

[Rudeman]

I like this idea. It needs more marketing me thinks though but the more I ponder it the more exciting it would be if it went into effect. Imagine those areas going from worst to best. ESPECIALLY if they started rivaling tax revenues of other states so then there is literally no argument against it.

It would be a great model to point to and say it should be nation-wide policy.

Obviously I think this should already be nation-wide and it does kinda rub me that the most irresponsible places in the US are being given this relief while the more responsible places are stuck with the higher taxes (almost like a punishment?) and many will see this as, in a way, a subsidy for the qualifying zip codes.
So I agree this is very far from ideal. However its a chance for at least some to gain more economic freedom and prove that it is healthy for the nation.

From a selfish view: Maybe it will work its way to the place I live.
From a selfless view: Even though I'm still burdened at least others in this nation have a chance at relief.

Either way it is potential step towards economic liberty.


I think the impact from the policy would be massive. If it can work in Detroit it can work elsewhere and it would get the ball rolling for the rest of the country. It's sort of the biggest bang for your buck sort of deal, plus if other places begin to suffer then wouldn't they also become eligible? So it could end up having the trickle effect.

[Bastiat's The Law]

I like this idea. It needs more marketing me thinks though but the more I ponder it the more exciting it would be if it went into effect. Imagine those areas going from worst to best. ESPECIALLY if they started rivaling tax revenues of other states so then there is literally no argument against it.

It would be a great model to point to and say it should be nation-wide policy.

Obviously I think this should already be nation-wide and it does kinda rub me that the most irresponsible places in the US are being given this relief while the more responsible places are stuck with the higher taxes (almost like a punishment?) and many will see this as, in a way, a subsidy for the qualifying zip codes.
So I agree this is very far from ideal. However its a chance for at least some to gain more economic freedom and prove that it is healthy for the nation.

From a selfish view: Maybe it will work its way to the place I live.
From a selfless view: Even though I'm still burdened at least others in this nation have a chance at relief.

Either way it is potential step towards economic liberty.

And you could always move there if it becomes a bastion of liberty. Pretty intriguing notion when you think about it.

[gwax23]

This is great. We must elect this man for president.

[Dary]

I have a couple of questions about it.

Once (and if) the plan goes into effect and the unemployment numbers fall to below the threshold, will the taxes shoot up to where they were previously?

How will the threshold be calculated? By using the BS numbers reported in the press or the actual unemployment numbers?

*edit I just saw the link to the document.

>Eligible areas of the country, whether a city, county, or even zip code, may have the opportunity to utilize the provisions of this plan for a period of 10 years, starting from the date of eligibility.

...and there is more to eligibility than just unemployment numbers.

The document refers to the underemployment rate, but not in the eligibility section. I'd like to see that number included in the calculation under said section.

I'd still like to know how the taxes would be raised back to previous levels. If it were done all at once, that would seem like it would be quite a shock.

Might a locality verging on eligibility purposefully push themselves over the edge in order to gain eligibility?

What if after 10 years the locality still hasn't recovered? Would it be re-eligible? If not, then you might see another mass exodus.

I like the idea, I'm just looking for unintended consequences.

I'd like it even better if the plan could stay in effect permanently.

[Cshelton21]

I have a couple of questions about it.

Once (and if) the plan goes into effect and the unemployment numbers fall to below the threshold, will the taxes shoot up to where they were previously?

How will the threshold be calculated? By using the BS numbers reported in the press or the actual unemployment numbers?

*edit I just saw the link to the document.

>Eligible areas of the country, whether a city, county, or even zip code, may have the opportunity to utilize the provisions of this plan for a period of 10 years, starting from the date of eligibility.

...and there is more to eligibility than just unemployment numbers.

The document refers to the underemployment rate, but not in the eligibility section. I'd like to see that number included in the calculation under said section.

I'd still like to know how the taxes would be raised back to previous levels. If it were done all at once, that would seem like it would be quite a shock.

Might a locality verging on eligibility purposefully push themselves over the edge in order to gain eligibility?

What if after 10 years the locality still hasn't recovered? Would it be re-eligible? If not, then you might see another mass exodus.

I like the idea, I'm just looking for unintended consequences.

I'd like it even better if the plan could stay in effect permanently.


This is more than just a targeted tax reduction for a few area's with high unemployment.

This is a framework for a tax revolution. If it works in Detroit it give's Liberty Republicans the biggest hammer in the game. Everyone would be clamoring for a RTZ (Reduced Tax Zone) and everywhere with "high" Unemployment suddenly becomes the entire United States.

I can apply the math at the most basic levels to my business right now and prove it works.

I Pay Roughly $80,000 /yr In federal taxes. My company employees 5 People. For every 2.5 people working for me I can expect 150k-300k In revenue. (the .5 exist as basically 1 administrative person for every 4 field workers)

If you Nix my 80k Tax bill I could hire two people at 40K /yr Right now. That would expand My revenue by roughly another 225k. You'd probably ask why I don't just hire more people now? I'd ask if you've ever paid tax's on 3/4 of 1 Million, plus the expenses of hiring and outfitting for expansion. It's not worth the stress when 20-30% of my already narrow profit is consumed by an ugly federal monster and spent in way's I DON'T FUCKING AGREE WITH!

[erowe1]

Any reduction of taxes and regulations is good.

But this incentivizes zip codes with greater than 1.5 times the national average unemployment to make sure they don't drop below that benchmark.

This isn't necessarily a bad thing. It could result in a lot of employees being paid under the table to keep the official unemployment rate artificially high, which would be great.

[erowe1]

and everywhere with "high" Unemployment suddenly becomes the entire United States.

Did I read that wrong? Or is this mathematically impossible?

[Origanalist]

II. A HISTORY OF ENTERPRISE ZONES
A. The Origin of Enterprise Zones in Britain
Many credit Peter Hall, a British professor of urban planning, with
creating the enterprise zone concept.' Professor Hall's enterprise zone
concept called for reduced governmental regulation within
economically depressed urban communities as a means of stimulating
economic growth within those areas.

" With reduced regulation, lower
taxes, and other financial incentives for businesses, economic activity
would increase due to the reduced cost of operating businesses within
those areas. 12 In addition, Hall asserted that enterprise zones would
create jobs in two ways.

13 First, Hall theorized that enterprise zones
would create low-wage jobs within the zones due to the increasing
number of businesses seeking cheap labor.14 Second, Hall posited that
enterprise zones would foster the creation of skilled jobs because new
small businesses would evolve into sophisticated enterprises through
innovation.

15 In advocating his enterprise zone concept, Hall added a
disclaimer that he did not intend for his proposal to be a model strategy
for urban development, but, rather, to serve as a last resort for reinvigorating urban areas.16
Professor Hall envisioned enterprise zones as being akin to free trade
zones and, thus, modeled them after the economically and
commercially successful urban plans of Hong Kong and Singapore.

17
However, the British did not intend for their enterprise zones to
stimulate economic activity in populated ara." Instead, their intent
was to spur economic activity in abandoned industrial areas. 19
The British created their enterprise zones under the Local
Government, Planning and Land Act of 1980.

20 The main purpose of
the legislation that created the British enterprise zones was to attract
medium- to large-scale capital-intensive industries2' to abandoned
industrial areas that possessed few, if any, residents.22 This legislation,
while not as comprehensive as Hall's proposals,23 provided for the
designation of eleven enterprise zones in 1980 and thirteen zones in
1982.

24 The Act further provided that businesses in these zones would
enjoy less-restrictive land use planning regulations 25 exemption from
property taxes and the Development Land Tax for business-use
buildings, 6 and the ability to write-off the cost of buildings and
equipment within one year of acquisition.

27 The Act made these benefits
available in the enterprise zones for ten years from the time of their
designation as enterprise zones.28

http://digitalcommons.law.wustl.edu/cgi/viewcontent.cgi?article=1033&context=urbanlaw

[Origanalist]

How Enterprise Zones Are Killing The California Dream

http://www.huffingtonpost.com/2013/05/28/how-enterprise-zones-are-_n_3347849.html

[gwax23]

Any reduction of taxes and regulations is good.

But this incentivizes zip codes with greater than 1.5 times the national average unemployment to make sure they don't drop below that benchmark.

This isn't necessarily a bad thing. It could result in a lot of employees being paid under the table to keep the official unemployment rate artificially high, which would be great.

Which would in turn make it look as if the plan wasnt working.

I want to see a text verison of the plan, point by point.

Specific regulations (Minimum wages?) does it deal with licenses/permits/certifications and other barriers to entry for occupation and businesses? Zoning Laws? etc etc.

[Brian4Liberty]

One thing is certain. "Reason" will always put the knife in our backs when you least expect it.

And they do this at the end of a fundraiser? They are bought and paid for by corporatists.

410784544917180417

[rich34]

One thing is certain. "Reason" will always put the knife in our backs when you least expect it.

And they do this at the end of a fundraiser? They are bought and paid for by corporatists.

410784544917180417

Probably same reason why drudge has gave it no publicity.

[jbauer]

This is more than just a targeted tax reduction for a few area's with high unemployment.

This is a framework for a tax revolution. If it works in Detroit it give's Liberty Republicans the biggest hammer in the game. Everyone would be clamoring for a RTZ (Reduced Tax Zone) and everywhere with "high" Unemployment suddenly becomes the entire United States.

I can apply the math at the most basic levels to my business right now and prove it works.

I Pay Roughly $80,000 /yr In federal taxes. My company employees 5 People. For every 2.5 people working for me I can expect 150k-300k In revenue. (the .5 exist as basically 1 administrative person for every 4 field workers)

If you Nix my 80k Tax bill I could hire two people at 40K /yr Right now. That would expand My revenue by roughly another 225k. You'd probably ask why I don't just hire more people now? I'd ask if you've ever paid tax's on 3/4 of 1 Million, plus the expenses of hiring and outfitting for expansion. It's not worth the stress when 20-30% of my already narrow profit is consumed by an ugly federal monster and spent in way's I DON'T FUCKING AGREE WITH!

++++++++++++++++++++++++Rep