Energy Policy Modernization Act of 2015
Floor Speech
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Mr. PAUL. Mr. President, I call up my amendment No. 3787.
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Mr. PAUL. Madam President, I rise today to offer the largest, most sweeping anti-poverty legislation since LBJ began the War on Poverty. This legislation, if passed, would return $100 billion to areas of poverty and high unemployment in our country--areas that have been devastated by chronic unemployment and poverty. Communities like Eastern Kentucky that have been devastated by the President's war on coal would be rescued. Communities like Flint, MI, where the water is unsafe to drink, would be restored. Communities like Ferguson, the South Side of Chicago, and the West End of Louisville would be given a chance to find the American dream if this legislation is passed.
My legislation is not a gift or a grant; my legislation simply allows $100 billion to remain in the hands of those who earned it. My legislation will provide incentive for businesses and capital to return to areas overwhelmed by chronic poverty and unemployment.
We are just past the 50-year mark on the War on Poverty. Sadly, 50 years later, we are still fighting that war, and every one of our States still has areas of high unemployment and poverty.
I think it is time we try something different: an approach that harnesses the ingenuity and the hard work of individuals, families, and businesses in our most afflicted communities; an approach that invites new investment to these communities; an approach that is free from government bailouts and bureaucrats picking winners and losers; an approach that provides hope and opportunity.
Economic freedom zones will be the largest anti-poverty program since the War on Poverty. Economic freedom zones are areas of reduced taxes and reduced regulations that increase incentives for business to come into these poor communities. This is about much more than a government stimulus or a handout. This legislation will empower communities by leveraging the human capital, natural resources, and business investment opportunities that already exist.
Reducing taxes in economically distressed areas is a stimulus that will work because the money is returned to businesses and individuals who have already proved they can succeed. This isn't government picking whom to give the money to; this is returning the money to those who have earned it and trying to get those businesses to expand.
Cities and counties will be designated as ``economic freedom zones'' if local unemployment is 50 percent above the national average or if poverty is 30 percent above the national average. Localities that are bankrupt--such as Detroit or Flint--or are in danger of bankruptcy are also eligible in order to attract new investment and economic activity that will help shore up the local finances without the need for a bailout. By slashing the Federal tax rate to 5 percent for a 10-year period, we can finally incentivize more businesses to locate in our struggling communities and provide more jobs and opportunities.
My plan leaves the hard-earned dollars of those of the community right there in the community. Instead of sending your money to Washington and begging to get some back, we leave it in your community to stimulate job production and economic growth in your community. It doesn't come to Washington, where politicians often pick the winners and losers; it stays with the community, where the consumers decide who succeeds.
Economic freedom zones will work where Big Government has failed because the money will remain in the hands of people whom local consumers have voted most able to run a business. Whereas big government programs often send money to people who are unable to run a business, who have no proven track record--think of Solyndra; we gave $500 million to people who didn't have a good business plan--economic freedom zones return the money to businesses and the individuals who have already proved they can run a successful business.
The President's big government stimulus plan was funded by debt. It didn't work because government always fails to identify profitable uses for capital, whereas returning capital to those who originally earned it will provide a stimulus that is exponentially bigger.
In the eastern part of Kentucky, this legislation would provide over half a billion dollars each year in much needed capital. In West Louisville, this legislation would provide an annual infusion of over $200 million. More importantly, this legislation will provide hope and opportunity where very little optimism currently exists.
For Detroit, it would mean that an extra $368 million stays in Detroit, in the hands of the families who earned it, and it will be spent locally. Businesses that have demonstrated success will be able to hire new employees. Businesses that move to the area and hire employees will be able to take advantage of these low tax rates and will be welcomed and encouraged to come to the community by the attraction of these low tax rates.
Flint--a city you see in the news every day--which is struggling even to keep clean water, will see an immediate cash infusion of $124 million if my bill were to pass. As business returns to Flint, as the local economy begins to grow, so too will the ability of local government to finance their infrastructure. This legislation will help the city's economy recover and its families have more of their own money to spend on their own needs. We skip the middleman. Don't send the money to Washington. If you want to help poor communities in our country, leave the money there. Skip the middleman; don't send to it Washington.
Economic freedom zones will mean an extra $452 million a year left in Baltimore and $1.5 billion left in Chicago. These economic effects will be real and will be felt immediately. Economic freedom zones will also provide other reforms that set the stage for medium- and long-term growth. We will lift some of the most anti-growth regulatory burdens. We will allow Federal permitting for construction projects. We will allow this permitting process to be streamlined so we can rebuild our cities.
Regulations that artificially drive up labor costs so public projects cost 20 percent, 30 percent more than private projects--we will eliminate these rules to allow your tax dollars to go further. We will also encourage foreign investment to bring jobs back to these chronic areas of poverty and unemployment. Outside investment into local education and social services will be encouraged. To set the stage for continuous growth and opportunity for the next generation, educational reforms will allow parents to move their children out of failing schools and into the school of their choice.
The War on Poverty has been going on for over 50 years, and it often seems as though poverty is winning. They say the definition of insanity is trying the same thing over and over again and expecting a different result. Big government programs have not cured poverty. In fact, some would argue they have made it worse. Isn't it time we tried something different?
Today the Senate will have a chance to try something different. Today the Senate will have an opportunity to begin the rebuilding of America. I urge my colleagues to vote for economic freedom zones.
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Mr. PAUL. Mr. President, Jack Kemp and others who have looked at and examined the issue of poverty have often found that we have not done a great job alleviating poverty. We have tried government programs. In my State, we tried them in rural Appalachia for 40 years. Yet we still have persistent poverty.
Many of us believe we would have a better chance with poverty if we would lower taxes in these areas, lessen regulation, and instead of sending the money to Washington, leave it where the poverty is. My amendment alone would leave half a billion dollars in Eastern Kentucky, $200 million in Louisville.
We have had much discussion of Flint, MI, and the water problem there. My amendment would leave $124 million in Flint, MI, next week. My amendment would leave over $1 billion in Detroit.
If there are those in this body who can come together and say we have a unified presence and a unified ability and desire to combat poverty, this is the amendment to do it. It is called economic freedom zones. I hope we will get bipartisan support in favor of leaving money in these impoverished communities to help them get started again.
Thank you.
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Mr. PAUL. Mr. President, pursuant to section 904 of the Congressional Budget Act of 1974 and the waiver provisions of applicable budget resolutions, I move to waive all applicable sections of that act and applicable budget resolutions for purposes of my amendment, No.
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