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View Full Version : Rand Paul's Plan Would Help Detroit




r3volution 3.0
11-06-2014, 02:52 PM
http://www.detroitnews.com/story/opinion/2014/11/05/john-mogk-rand-paul-detroit/18484651/


Sen. Rand Paul, R-Kentucky, stopped by Detroit to boost the state's Republican candidates and tout his "freedom economic zones" proposal as a solution to the city's economic ills. Paul's proposal is consistent with Republican philosophy. It would reduce or eliminate federal taxes on residents and businesses located in Detroit and other distressed cities. It is a proposal that I made a decade ago and could hasten Detroit's return to being a dynamic urban community by decades.


The private sector builds and rebuilds cities, not the government. Look no further than the dramatic improvements resulting from private investments being made by Dan Gilbert in the city's downtown or the Ilitch organization and a host of small entrepreneurs in Midtown. The same is true in Detroit's neighborhoods where the private sector is made up of property owners and small businesses.


Paul's proposal addresses the city's major challenges of lifting the local economy through private investment without requiring any resources or tax dollars from the city. It is essentially a major federal grants program with no administrative costs that would dramatically increase Detroit's local tax revenues

...Consider a federal income tax credit of up to $500,000 for residents and $5 million for businesses. Residents would be drawn to the city for federal tax relief, increasing population and income levels and helping to stabilize struggling areas of the city. Businesses would be incentivized to expand or relocate to Detroit from all corners of the country, increasing the city's employment base and helping to alleviate an unemployment rate that is one of the highest in the nation.

This is such a fantastically good idea. Forget the cities it's actually applied in, think of the example it would set.

It could change the whole dialogue on economic policy in this country.

I actually think that passing this legislation should be Rand's top priority over the next two years.

r3volution 3.0
11-06-2014, 03:13 PM
Prospects for passage?

Well...guess who co-sponsored it?

None other than Rand's fellow Kentuckian and the new Senate Majority Leader Mitch McConnell.

http://www.paul.senate.gov/?p=press_release&id=1059


Sens. Rand Paul (R-Ky.) and Mitch McConnell (R-Ky.) today introduced S.1852, the Economic Freedom Zones Act of 2013. (http://www.paul.senate.gov/files/documents/MCG138772.pdf)..."I am proud to co-sponsor Senator Paul's bill and I applaud him for his work to help distressed areas around the nation, including those in Kentucky," Sen. McConnell said. "In addition to helping bring businesses to distressed areas, this legislation will assist in job creation by unraveling burdensome federal regulations that are stifling economic development."

Bastiat's The Law
11-06-2014, 03:47 PM
Would you guys move to Detroit if there was virtually zero income tax and other liberty incentives?

supermario21
11-06-2014, 04:06 PM
Turn Detroit into the new New Hampshire "Free State Project" kind of thing and then convince Amash to run for Senate when enough of us get there ;)

r3volution 3.0
11-06-2014, 04:06 PM
Would you guys move to Detroit if there was virtually zero income tax and other liberty incentives?

I wouldn't want to have been on the first ship of Pilgrims arriving in the New World, but I'd have moved in later after they had already established the basics of civilization. But I'm sure there are some brave pioneers out there somewhere. :cool:

Bastiat's The Law
11-06-2014, 04:15 PM
I wouldn't want to have been on the first ship of Pilgrims arriving in the New World, but I'd have moved in later after they had already established the basics of civilization. But I'm sure there are some brave pioneers out there somewhere. :cool:

What an amazing social experiment that would be.

RonPaulMall
11-07-2014, 08:09 AM
Would you guys move to Detroit if there was virtually zero income tax and other liberty incentives?

Of course not. And that is my biggest problem with this proposal. Why are you limiting these economic freedom zones to the areas of America where they are least likely to make a difference? How about for every shythole like Detroit that you liberate, you also grant the same exemptions to a similarly sized area that has a higher quality population and where people would actually be inclined to live?

H. E. Panqui
11-07-2014, 04:19 PM
:rolleyes:

Rand's proposal is typically Republicrattish...more illion 'dollar' $pecial legislation favoring those chosen by Republicrats hoping to pick up some electoral votes, etc....

...always with their stinking thumb$ on the $cale...always flailing at the leaves, never $triking the root$: massive monetary fraud, ignorance..

(BTW, I just got a notification from an apparent Rand Pall cheerleader that I can't tell the truth about Rand...only cheerleaders for Rand are to post here...so I'll post elsewhere..it is their ball and ballpark and they are surely within their rights to ban me and other honest thinkers from their class d little-league thinking...)

Inkblots
11-07-2014, 06:00 PM
It's a great policy, and has the potential to be a real vote-winner, to boot. Hopefully they'll be able to move the bill this Congress.

ItsTime
11-07-2014, 07:14 PM
Turn Detroit into the new New Hampshire "Free State Project" kind of thing and then convince Amash to run for Senate when enough of us get there ;)

Exactly why Rand's plan is junk. DO NOT PUNISH THE GOOD STATES AND REWARDS THE LOSER CITIES.

Rand wants to pick economic winners and losers.

Crashland
11-07-2014, 07:32 PM
Exactly why Rand's plan is junk. DO NOT PUNISH THE GOOD STATES AND REWARDS THE LOSER CITIES.

Rand wants to pick economic winners and losers.

Yes -- selectively "leaving money in Detroit" is effectively exactly the same thing as imposing a tax on everyone else and sending a federal subsidy (bailout) to Detroit. Because every dollar that Detroit is exempted from paying to the federal government means everyone else needs to pay just a little bit more for the federal government to meet its obligations. I am surprised that so many conservatives don't see it for what it is, including Rand himself. Don't reward loser cities and give them special treatment. There ought to be a better way. It is little better than a direct subsidy, because at least it avoids actually choosing individual companies to give the money to, and letting the market choose instead. But still.

RonPaulIsGreat
11-08-2014, 03:29 AM
Would you guys move to Detroit if there was virtually zero income tax and other liberty incentives?

I would, but my situation isn't common, in that, I don't really need to leave the house, except to acquire food. So, sure, why not, I'd buy a place, then get bars on the windows, security cameras, and have a couple dogs, and guns. I'd have close to 100K more dollars if didn't have to pay income taxes for like 4 years. That's a good amount of cash saved up, for doing nothing, but living somewhere else. Hell, just imagine the tax savings if you made like 200K a year or more. You'd be saving like 60K a year.

LawnWake
11-08-2014, 07:15 AM
Of course not. And that is my biggest problem with this proposal. Why are you limiting these economic freedom zones to the areas of America where they are least likely to make a difference? How about for every shythole like Detroit that you liberate, you also grant the same exemptions to a similarly sized area that has a higher quality population and where people would actually be inclined to live?

Basic rule in marketing related psychology: people have a much easier time agreeing to small things successively, than they are to agree to something big immediately. Detroit is considered a wasteland, so people don't think that introducing something as "drastic" as free trade zones there as as much of a big deal. Other places will follow eventually.

KingNothing
11-08-2014, 10:33 AM
Exactly why Rand's plan is junk. DO NOT PUNISH THE GOOD STATES AND REWARDS THE LOSER CITIES.

Rand wants to pick economic winners and losers.

You aren't punishing Peter by refusing to rob Paul. Stop with this nonsense. ANY elimination of taxation is good! It is a step in the right direction.