Sen. Rand Paul, R-Ky., is drawing up a proposal that would shift money away from Egypt and to Detroit in what could be a conservative alternative to a bailout of the Motor City.
Paul told Glenn Beck’s radio show Tuesday he was in the early stages of writing legislation that would offer tax breaks that would entice development in cash-strapped Detroit. He also proposed cutting off foreign aid to Egypt following the military takeover of the country’s government and using that money to fix Detroit’s infrastructure.
“I think there is a way, in an economically depressed zone, to have some tax forbearance, reduce some taxes, encourage businesses, encourage people to come in and take abandoned property,” he said. “The money we’re sending to Egypt for tanks and plans, we can put it into infrastructure. It doesn’t have to go to just Detroit, but across America.
“There are ways we can do it in a Republican fashion,” Paul added, “but I will not be for borrowing any money from China to try to bail out Detroit, particularly if they continue the same policies.”
In a historic and unprecedented move for a city of its size, Detroit has filed for bankruptcy and is waiting for a court decision on whether it can proceed. The city has $18 billion in debt, much of it in pensions owed to current and former employees.
Paul also hoped that a fresh start for Detroit could mean Republicans have a chance to push Democrats out of power in the city.
“I think that’s wishful thinking,” Beck said.