Judge Stephen Rhodes gave the green light for the emergency managers to restructure Detroits whopping $18 Billion debt, including those receiving or eligible for pensions will be on the chopping block.
Obama has taken a hands-off approach with the Detroit bankruptcy, even though Detroit voted for Obama 98%-2% over Romney in 2012. Low and behold, a Republican has offered a way to pull Detriot out of its economic death-spiral.
Sen. Rand Paul has proposed making Detriot, and other struggling cities into an “enterprise zones”. Rand has proposed the following:
“Key to Paul’s plan:
— Providing eligible areas with a reduction in individual and corporate income tax to a single, flat 5 percent rate.
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— Reducing the payroll tax.
— Providing child education tax credits to parents.
— Suspending EPA non-attainment designations in Economic Freedom Zone areas.
— Suspend Davis-Bacon wage requirements on federal projects.”
“Right now I think Detroit is in a downward spiral and something’s got to be done,” Paul recently told the Detroit
Rand’s proposal is Reaganomics on steroids, but its worth a shot. Glad to see someone is offering a lifeline to the people of Detroit. But as George Will recently said, Detroit is experiencing a “cultural collapse and nothing a bankruptcy court can do, is going to change that”. My hope is Obama will embrace Rand’s proposal and prove George Will wrong.
http://m.washingtonpost.com/business/economy/detroit-eligible-for-nations-largest-municipal-bankruptcy-filing-federal-judge-rules/2013/12/03/aa099fc6-5c40-11e3-be07-006c776266ed_story.html
http://m.washingtonexaminer.com/rand-paul-offers-freedom-zones-to-save-bankrupt-detroit/article/2540123?custom_click=rss
