S.19.3-19: Economic Freedom Zones Act of 2019 2.0 (Failed)

[Saint Milei]

I removed the part about federal regulations. With the bill in it's form, it will address many of the issues in low-income communities.

[Saint Milei]

The way to foster growth in low-income communities, is not for us to create "Economic Freedom Zones" where there are no taxes on businesses. Instead we should focus on direct investment and  the use of grant to spur their development. The best you can hope for with businesses in these "Economic Freedom Zones" is only for indirect investment into the communities, and why should we leave it up to chance, when we have the opportunity not to do so?

What you actually do with this bill is making the South into a tax haven for businesses, who will set up shop in these "Economic Freedom Zones" and proceed to do business as usual, just at a reduced tax rate. You would help large corporations more with this bill, rather than the intention of helping small businesses. The only part of this bill that is worth supporting are the tax credits, but everything else in this bill is just terrible.

Investment and tax credits are the way forward, not tax cuts.

Reducing the burden on businesses in the communities and creating incentives for businesses to move and hire people from these communities is an investment. A direct investment.


This act will benefit both small and large businesses. More importantly, it will benefit the people within this community. It will keep jobs in low-income communities and over time, will increase the overall wealth of these communities. This is not a "pro-business" bill. It's a pro-community bill

[Saint Milei]

As it's Small and Medium business that provide the majority of jobs I think they should be the ones to receive the benefits rather than multinationals. I am also not in favor of repealing ALL taxes. Business that have decided to partake in TIPS are already receiving a permanent tax cut off the nominal rate.

Would an amendment to Section 3.1 to read:

Small and Medium Businesses will receive a 48% cut on the nominal Corporate income tax, capital gains tax, and the payroll tax. These will expire 10 years after the implementation of this bill.

This would mean that if these businesses also opted in to TIPS that they would receive an effective 50% tax cut on corporate, capital gains & payroll taxes and this tax cut won't be a permanent fixture. This means that local businesses have incentives to establish themselves but wont have a permanent competitive advantage over other businesses outside the Economic Freedom Zone.

Employment is important and providing incentives for small an medium businesses will help to provide the best form of social welfare. A Bloody JOB!

As it's Small and Medium business that provide the majority of jobs I think they should be the ones to receive the benefits rather than multinationals.

Small and medium businesses are receiving the benefits. When you look at most low-income communities, there are rarely any large multinational corporations. And the ones that usually exist are fast-food companies and one small grocery store relative to the average size in more developed areas. Often, these stores close down and move to more developed areas, leaving the people there with no mainstream grocery store. These freedom zones give more economic opportunity to local businesses and allow for future local businesses to have a competitive environment to grow in.


I can understand not wanting to repeal all business taxes. I'm ok with that amendment.


I'd also like to point out small/medium businesses won't have a competitive advantage over areas that aren't designated freedom zones. Most of these areas have some of the lowest skilled workers and the entrepreneurs aren't as established as in other areas. It's harder to secure loans here, invest, and find adequate employment. Any perceived benefit will be offset by all the costs.

[Saint Milei]

Economic Freedom Zones Act of 2019 2.0
   To grow wealth in low-income urban and rural communities.
In the Southern Chamber of Delegates

The Bill
   To grow wealth in low-income urban and rural communities.

Section 1: Short Title
   This policy will be titled the Economic Freedom Zones Act of 2019 2.0

Section 2: Findings
   The Chamber of Delegates finds the following
(1)   Low-income communities are unable to spur job growth and increase economic output in their communities
(2)   Middle class and wealthy communities are able to do this under the current tax system
(3)   Many low-income communities would like to rebuild themselves without interference from government
(4)   Incentives ought to be provided to local businesses in low-income communities and other businesses in the South
(5)   Culture is important in these communities and it’s crucial for the communities to hire from within

Section 3: Implementation
   The Chamber of Delegates proposes the following in three phases:

Short Term:
   The best way to spur growth in communities is to reduce the crowding-out effect of government. Allow business owners and individuals from these communities the free reigns of deciding how to conduct economic growth
(1)   Repeal the following regional business taxes: Corporate income tax, capital gains tax, and the payroll tax
Small and Medium Businesses will receive a 48% cut on the nominal Corporate income tax, capital gains tax, and the payroll tax. These will expire 5 years after the implementation of this bill and a vote to renew the tax cuts will occur.
(2)   Adding a tax credit of $250 to each business per new hire of an individual from their home community
Mid Term:
   Reinvestment is crucial to the survival of low-income communities. Tax cuts help create the environment. Reinvestment creates the pillar that allows said communities to flourish.
(1)   Double the amount of expensing of all business costs
(2)   Appoint officials to coordinate with business owners in areas with restricted land to lower restrictions.

Long-Term Reinvestment:
   Increasing both economic opportunities and economic mobility in these disadvantaged communities.
(1)   Create a voucher program for communities designated as Economic Freedom Zones.
(2)   Provide a new $1500 tax credit per child for parents or guardians
(3)   Establish a new Business-Academic Tax credit for businesses that provide scholarships or financial aid to employers and residents in their communities.
(4)   Increase the number of Southern resident applicants in order to raise the number of entrepreneurs

Sponsor: Delegate DeadPrez

I propose the following amendment

[Saint Milei]

aye

[Saint Milei]

sorry. I meant to second the motion

[Saint Milei]

Aye

[Saint Milei]

I thought we usually got 48 hours

[Saint Milei]

Looks like it still failed. Voting opened at 2:54 am on September 16 (eastern time) and closed at 3:06 am on September 18.

It didn't fail last time. We tabled it because of the controversy. Last time, it had the votes because I asked other voters about their thoughts privately.






Thank you Representative Fhtagn for providing clarity. Considering Delegate Eden would have voted aye for this bill, resulting in the bill passing and considering there is no rule addressing ties, I think we should address this issue now before too much time elapses and we have other bills to worry about. We have the votes, let's get this passed.

[Saint Milei]

Looks like it still failed. Voting opened at 2:54 am on September 16 (eastern time) and closed at 3:06 am on September 18.

It didn't fail last time. We tabled it because of the controversy. Last time, it had the votes because I asked other voters about their thoughts privately.






Thank you Representative Fhtagn for providing clarity. Considering Delegate Eden would have voted aye for this bill, resulting in the bill passing and considering there is no rule addressing ties, I think we should address this issue now before too much time elapses and we have other bills to worry about. We have the votes, let's get this passed.

Delegate Eden failed to vote in the 48 hours, so his vote is invalid. The final vote was 3-3, and the question is what is the procedure for breaking a tie.

There is no procedure which is why I said it. I could easily just put the bill back in queue, add a modification, speed up the debate, and get the votes. No point in delaying this any further.