Rand Proposes Billion Dollar Free Market Stimulus Plan for Detroit

[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.

 

[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.

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