Royce, I applaud thinking about ways to help Detroit retail, but there are 3 fundamental flaws with your suggestion.
1) The suburbs have no "unfair" advantages over Detroit. They do have lower taxes, lower crime, higher income, but those things are not a factor of fairness or lack thereof.
2) A super-majority of legislators are not from Detroit; this proposal would not get 10 votes in either house of the legislature, let alone a majority. In fact, I find it hard to believe the leftists that represent Detroit [[not to say her best interests) even willing to concede that tax cuts lead to more economic acrivity.
3) Temporary- even 10 year- tax breaks can appear to be fools gold to business. If their economic model only allows for profits with the temporary break bringing in customers, I think most businesses that would otherwise not open, still won't. It takes most businesses years to pay off their investment anyway.
2 tax cuts that would permanently help the city attract businesses: abolish the city income tax; cut commercial property tax 5% a year until half their current level.
Bookmarks