Thursday, December 5, 2013

Details of Rand Paul's 'Detroit Plan' Emerge

I like it. It essentially cuts taxes big time and little else. We need more programs like this.

From WaPo:
Sen. Rand Paul (R-Ky.) announced Thursday that he will propose legislation that would cut taxes for Detroit and other areas of the country that are in dire financial straits, pitching the idea as an alternative to bureaucratic government stimulus programs.
Paul is traveling to Detroit on Friday to make his case. During a conference call Thursday morning, he said the idea (known as "Economic Freedom Zones") should satisfy both Republicans who like cutting taxes and Democrats who want to provide stimulus to areas such as Detroit — all without another government-funded bailout.
"What we hope to do is create taxes so low that you essentially are able to bail yourselves out, by having more money accumulate in the area over time," Paul said.
The taxes that would be reduced include the income tax, the corporate tax, payroll taxes and the capital gains tax. The bill would also lower the economic threshold for immigrants who want to start businesses in these areas to $50,000.
The legislation would apply to all areas of the country with an unemployment rate that is at least 50 percent greater than the national average. As Paul noted, it would include urban areas such as Detroit as well as rural areas like those in the eastern part of his home state, Kentucky. Economically distressed Zip codes in otherwise stable areas would also benefit.


  1. this is a very smart move, you're not cutting off assistance-you're allowing them to keep more $$$-it will be hard for the dems can argue against this without looking like they need a handout. if rand can score a couple publicity victories like this over the next two years...hmmmm.

  2. this could be the way to spread 'infant libertarianism' in areas abandoned by the state and just expand those 'poverty stricken areas' outward.

  3. Not that I would ever be against a tax cut, but I'm not a huge fan of rewarding the areas with the more irresponsible governments.
    So if they're calling a tax-free area an "Economic Freedom Zone," are they finally admitting taxes are the opposite of freedom?

  4. And if it works, everyone who didn't get tax breaks will be clamoring for theirs. The tax breaks will spread everywhere.