US Sen. Paul pushes for tax breaks to help Detroit

By: Associated Press Email
By: Associated Press Email

DETROIT (AP) - U.S. Sen. Rand Paul says the best way to confront poverty and unemployment in struggling cities like Detroit is to lower taxes to encourage growth.

The Kentucky Republican tells Detroit business and community leaders that cutting corporate, payroll and income taxes would put more money "in the hands of those who earn it." He spoke Friday at the Detroit Economic Club.

He points to his bill calling for "economic freedom zones." He wants a flat tax of 5 percent in certain neighborhoods.

Paul is a tea party champion and potential Republican presidential candidate whose philosophy includes reducing federal spending and lowering taxes.

A federal judge this week allowed Detroit to become the largest U.S. city to enter bankruptcy. The city says its debt is $18 billion or more.

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