This debate on the Gingrich is worth doing. Will a tax free zone for Detroit lead to investment in Detroit and revitalize the City of Detroit? On the other hand the question of what should the state and Detroit for revenue so they can operate their appropriate functions--police, fire, schools, infrastructure, etc.?
If this tax free zone does work and is proven to bring investment into the city why are we excluding other urban centers who are also suffering: Flint, Saginaw, Muskegon, Benton Harbor? If its good for Detroit why not these urban centers/cities?
I understand that Detroit is in a tough position. Like the rest of Michigan, and other places all over the country, they are suffering financially. However, just because the economy is bad, that does not call for something drastic like this. Having no taxes may seem like a great idea at first, but after giving it any thought at all, I do not understand how someone could not realize the multitude of problems that it would create. I cannot even begin to understand how Gingrich thought this would be a good idea, and even more surprising, how Charles Pugh, the City Council President, agreed with him.
ReplyDeleteAre they aware of everything taxes are needed for? Police for one. Poorly funded law enforcement would better the city. However, it will breed crime. And schools. Having less educated children will only hinder the city of Detroit, not help it. The first department does not operate for free. Unless Detroit has a sure way of funding the things that taxes normally do, I see no way of how this could be anything except a disaster. There is no draw of wanting to invest in business in an area that will only go downhill as a result of no taxes. And, the no tax idea is not a permanent thing. It is only for ten years. What happens when that ten year period is up? How will the economy adjust to having to pay taxes again? If anything, I say taxes should be raised to solve problems. Better education, funded through taxes, would benefit Detroit and Michigan as a whole much better than a break from paying taxes. In my opinion, other urban areas are being excluded from this idea, because it is not realistic. An area that is already struggling should not try something as risky as this.