Paul pitches reduced regulation zones

Parts of the country struggling with high jobless rates would see taxes and regulations slashed under a plan touted Friday by Sen. Rand Paul.

The Kentucky Republican, seen as a potential 2016 presidential contender, is poised to introduce legislation next week that would create “economic freedom zones," which he says would allow struggling communities to bounce back.

“Economic freedom zones will cut out the red tape that keeps new businesses from starting and old businesses from thriving,” Paul said during a speech at the Detroit Economic Club.

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Under Paul’s bill, personal and corporate tax rates would be lowered to 5 percent in zip codes where the unemployment rate is 150 percent the national average — or roughly 12 percent currently.

The capital gains tax would be suspended in the zones, and regulations would be rolled back

The repeal of certain rules involving storm water would lead to as much as $16.5 million in savings in Detroit, Paul said. Altogether, the bill would save the beleaguered city as much as $1.3 billion over the next 10 years, he said.

“What Detroit needs to thrive is not Washington’s domineering hand, but freedom from big government’s mastery,” Paul said.