Rand Paul Announces Plan To “Help Detroit Bail Themselves Out”
Kentucky Senator Rand Paul traveled to Detroit on Thursday with a mission to save the recently bankrupt city recover by cutting taxes as well as suspending certain regulations.
“What we hope to do is create taxes so low that you essentially are able to bail yourselves out,” he said. “By having more money accumulate in the area over time.”
His plan would apply cuts for income tax, corporate tax, payroll tax and capital gains tax in areas highly impacted by financial ruin. These areas, known as “economic freedom zones,” would use those tax savings to stimulate different programs which would in turn incentivize growth for these embattled communities.
The Republican senator, a highly expected presidential candidate for 2016, said that the GOP needs to reach out to cities as well as it does in small, rural areas. “Large cities we haven’t been doing very well,” he said. “I think it is important we establish a presence in those cities, set up offices, meet people, find out what is going on in their community and then try to come up with solutions.”
Detroit voters supported President Obama almost unanimously in 2012, a trend which Rand Paul hopes to change by engaging the city’s struggles. “I think having a presence — you get to know people, you attend churches, social gatherings, picnics, things like that,” Paul said.
Paul criticizes the Washington process for economic stimulus for cities while offering what he sees as a compromise. “A government stimulus takes money from one area of the country, brings it to Washington, and then somebody — a central planner — has to decide who to give it to.
“The problem is that central planners are never smart enough to know which entrepreneurs will succeed or which are the best in business, so they typically give it to the wrong people. In ours, basically it will go back to people who the customers have already voted for.”