April 20, 2016—Senator Rand Paul has introduced a piece of legislation that, if passed, could make a major difference in the lives of countless individuals across America.
The Economic Freedom Zones Act of 2015 (S.790), which will be voted as an amendment to The Energy and Water Development and Related Agencies Appropriations Act, or H.R. 2028., stipulates certain areas as Economic Freedom Zones, where tax incentives and reduced regulations will provide enough incentives for businesses to flourish, putting an estimated $100 billion back into communities in need.
According to Sen. Paul’s official announcement, the policies associated with these Economic Freedom Zones are not handouts. What he hopes to do is to “empower communities by leveraging the human capital, natural resources, and business investment opportunities that already exist.” Some of the communities Sen. Paul hopes to help with S.790 include Eastern Kentucky and the west end of Louisville, Flint, Michigan, Ferguson, Missouri, and the south side of Chicago.
“Reducing the taxes in economically depressed areas,” Rand Paul announced, “is a stimulus that will work because the money is returned to businesses and individuals who have already proven that they can succeed.”
The bill would kick in in cities and counties that register local unemployment rates that are 50 percent higher than the national average. The bill also aims to help cities in which 30 percent of residents are below the national poverty line.
Paul explains that localities “that are bankrupt of in danger of bankruptcy, are eligible too,” boosting the economic activity of these areas and attracting new investment, which would help improve the lives of locals and help keep them from requiring a bailout from state or federal governments.
“By slashing the federal tax rate to 5% for a 10 year period,” Paul explained, “we can finally incentivize more businesses to locate in our struggling communities and provide more jobs and opportunities” for those who need them most.
Instead of sending “hard earned dollars” to Washington “where politicians pick winners and losers,” Paul adds, the money stays right there in the community, “where the consumer can decide who succeeds.”
Watch his announcement below:
You may check the bill’s progress here.
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