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Rand Paul Says He's Considering GOP Alternative To Detroit Bailout

Sen. Rand Paul (R-Ky.) said Tuesday he has begun talks with his legislative staff about drafting a conservative alternative to a possible federal bailout of Detroit if the White House and congressional Democrats push to rescue the city from financial ruin.

During a phone interview on Glenn Beck's radio show, Paul said he might push a Republican plan to assist Detroit that would emphasize conservative pet policies to stimulate economic growth and bring the troubled municipality back to fiscal well-being.

"I think there is a way, in an economically depressed zone, to have some tax forbearance, reduce some taxes, encourage people to come in and take abandoned property," he said. "I will not be for borrowing any money from China to try to bail out Detroit, particularly if they continue the same policies."

Paul also said he hopes the proposal could generate support for Republicans in the overwhelmingly Democratic city.

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http://www.huffingtonpost.com/2013/08/06/rand-paul-detroit-b...



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I hate to see congress getting involved.

Whether its a bailout or a plan to "emphasize conservative pet policies", Congress has no business in interfering with a bankruptcy proceeding. It will end up like GM and Chrysler.

Let the bankruptcy court reorganize the city and let the creditors (bondholders and retirees) pay the price.

Put his money where his mouth is...

Like Clint Eastwood, he could buy property in Detroit or even establish it as a second residence. Then work with local libertarian think tanks to educate people on how to run a city. If he then ran for president he would certainly get a lot of attention.
The big problem in Detroit, like many northern cities, is that city workers when they retire leave town moving to where they can pay cheaper taxes. If Detroit was to eliminate property taxes this would certainly keep and bring people back into the city.
grant

Very wary of his solution

How can he possibly change any regulations or taxes in Detroit without overriding the state of Michigan, which would be contrary to states' rights...?

Maybe he can "incentivise"

Maybe he can "incentivise" city gov to remove regulations or property taxes. For example, introduce legislation something to the effect of: IF the city of detroit decides to abolish regulation XYZ or to abolish property taxes for the next 20 years, the federal government will not collect federal income taxes from residents living within the city for the next 20 years.

FYI I have no clue whether or not any of this would be legal, but I like the sound of it.

Yea, a lot of legal concerns

I don't believe the federal government is allowed to discriminate which areas it taxes; that would be a dangerous tool... For example, the federal government could then tell a specific state to do X or it will raise the income taxes on the citizens in that state. Seems ripe for abuse.

Any precedent for this?

Precedent? Yes, they're called "Enterpise Zones"

http://www.house.leg.state.mn.us/hrd/pubs/entzones.pdf

And yes, it can be another tool to favor one group over another.

OTOH, why not make the whole of the United States a free enterprise zone, a free speech zone, etc.?

Thanks for the link

Will definitely read!

TUBE

Thank you

You rock on YouTube!
I wish more folks could join in your kind of activist action there.

LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
http://www.dailypaul.com/203008/south-carolina-battle-of-cow...
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15

"Special Economic Zones"

...are the answer. The concept has worked everywhere it has been implemented and since Detroit is now a third-world poverty site, it should be enacted immediately.

Detroit has enough problems

Detroit has enough problems without the government coming in to help them. Isn't that one of the three big lies, "we're from the government and we're here to help you". Detroit was one of the first cities to get the full brunt of government aid.

"conservative pet policies"

Like, for example, not turning most of the city into an uninhabited, post-apocalyptic wasteland through crushing property taxes? Like not driving all business out of the city through coercive unionism and regulations? Like not putting half the city back on the welfare-plantation just to buys their votes for corrupt race-baiting shitbag politicians? ...yea, silly little "pet policies" like that. :-/

"Alas! I believe in the virtue of birds. And it only takes a feather for me to die laughing."

certainly he can come up with something

Better than this

http://www.truth-out.org/news/item/17996-the-detroit-bail-in...

"The Detroit bankruptcy is looking suspiciously like the bail-in template originated by the G20’s Financial Stability Board in 2011, which exploded on the scene in Cyprus in 2013 and is now becoming the model globally. In Cyprus, the depositors were “bailed in” (stripped of a major portion of their deposits) to re-capitalize the banks. In Detroit, it is the municipal workers who are being bailed in, stripped of a major portion of their pensions to save the banks.

Bank of America Corp. and UBS AG have been given priority over other bankruptcy claimants, meaning chiefly the pensioners, for payments due on interest rate swaps they entered into with the city. Interest rate swaps – the exchange of interest rate payments between counterparties – are sold by Wall Street banks as a form of insurance, something municipal governments “should” do to protect their loans from an unanticipated increase in rates. Unlike ordinary insurance, however, swaps are actually just bets; and if the municipality loses the bet, it can owe the house, and owe big. The swap casino is almost entirely unregulated, and it is a rigged game that the house virtually always wins. Interest rate swaps are based on the LIBOR rate, which has now been proven to be manipulated by the rate-setting banks; and they were a major contributor to Detroit’s bankruptcy."

Good for Rand, but surely

Good for Rand, but surely even he and Beck see the irony in his refusal to bail out Detroit, while not refusing to continue funding the apartheid state of Israel.

Good point

...we must win the big fight... before. Then we can start restoring things.

LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
http://www.dailypaul.com/203008/south-carolina-battle-of-cow...
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15

Bump

For president Rand Paul.

LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
http://www.dailypaul.com/203008/south-carolina-battle-of-cow...
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15

Front page

Mods don't be sleeping on the job.

LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
http://www.dailypaul.com/203008/south-carolina-battle-of-cow...
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15