ziggy88 Loc: quincy illinois 62301

The auto industry in Detroit is making slow gains and kicking to come back. Who knows, however, how long the Detroit bankruptcy court drama will continue is pure speculation. Will the Feds stick their nose in to bail them out? Will they ride to the rescue to save the corrupt schemers of government corruption and debauchery? To make a comeback as a vibrant focal point of commerce the city planners must put their focus on these three areas.

Taxes

After the drama of bankruptcy is over the Motor City must institute low taxes in the commercial, industrial, and residential property levies. Forget the bondholder’s and unions demands for bloodletting; both, inevitably, will have to survive with less. Lower property taxes, sales taxes, and fees for city services will attract entrepreneurs by the boatload. With these opportunity seekers money, sweat equity, and new ideas they can again turn Detroit into a livable, attractive city. The state of Michigan could help itself enormously along with its biggest city by immediately repealing the crushing machinery and equipment tax. Instead they plan a slow decade long phase out. Talk about addiction to other people’s money!

Pensions

These will have to be scaled down as well as new formulas for those not yet retired. After the benefits are changed to more sensible, accommodating numbers plans should be annuitized. People should then have the equivalent of a 401(k) retirement plan going forward. This is critical for trust and confidence in the fiscal health of the city. That way politicians always running for re-election can’t make ridiculous mind boggling promises for outrageous benefits to the employees of the state just to get back in office. Creative ideas with beneficial provisions can be offered. Then when Detroit’s economy grows some of the giveaways can be restored, but not at the price of heavier taxes.

Medical Costs

An idea for retirees is you could set up health savings accounts with high deductible policies. Saving, say, $3,000 a year in HAS’s for regular expenses plus having complete catastrophic insurance coverage for incidents totaling above $5,000 would be cheaper for the city. This would be cheaper than what is now currently promised. Similar plans could be given current employees. The city would save money; workers would become better medical consumers; whatever they save they get to keep. Of course there may have to be some incremental pay up-grades to service these savings accounts. That would be the only downside for the city.

Schools

Simply do what New Orleans did after Katrina allowing an unlimited number of charter schools to receive per pupil what the public schools get. The resulting good schools will attract new residents when the word gets out. Thus a new source of tax revenue for the city would be created when the area starts to repopulate.

Asset Sales

Detroit has tons of assets it could sell to help knock down the debt. There is at minimum $100-$200 million worth of fine art the city owns. A philanthropist could buy it all and create a new museum charging admission along the way. The city owns, vacant lots, parking space, discarded buildings, run down ghettos, commercial properties, and a workforce that is out of work. Do you see the connection?

Sell all this excess baggage to whomever using the proceeds to help satisfy creditors and annuitize existing but scaled back pensions. If the new tax regime is truly structured like Hong Kong then land will sell like hot cakes. The story of Hong Kong is one for another day.

Conclusion

The major trouble with Detroit is it has forty three unions; dealing with them could be in and of itself time consuming; by throwing them a bone like a pay increase could be an offer that will attract major union concerns. Then when you have their attention you can dial in all these scaled back plans. Still making it attractive enough to make it a win-win for all involved. This could also give enough relief to the city to get over for a while to make inroads for a major rebuild. If we can save Detroit we can do this for the rest of the nation’s downtrodden cities. Only time and a lot of good will with old fashioned hard work can make the difference.

Workinman Loc: Bayou Pigeon

Wow and here I thought Obama and his cult professed that Detroit and GM had been saved!!!

Dummy Boy Loc: Michigan

Just like when Bush declared the war was over....too funny!

PoppaGringo Loc: Muslim City, Mexifornia, B.R.

If you will take the time to research it, you will discover the banner 'Mission Accomplished' had nothing to do with Bush. It was for the Navy, not Bush.

Dummy Boy Loc: Michigan

:D How hypocritical?

pappadeux Loc: Phoenix AZ

Not until you change the mind set of those who live there back in the twenties and thirties workers bought homes and over the years made them showcases . You old timers remember ? However ever since pro black ( persons of color ) polititicans took over the city, the end result was as depicted in my cartoon. Not only in Detriot, but Chicago, and of course the latest nightmare Baltimore. So when you have an expanded population of a single group the end result will be that they will be catered to. The end result will be more Baltimore's and Detriot's. Right now the population of Baltimore is 68 percent 'Black'. So whats your excuse ?? The 'Whitie's don't run the show. The 'Darkies' do, just like the USA now. we have a 'Darky' POTUS who is turning this once great country into a 'Ghetto" So where do we go from here ?

9th Marines

While that is true you know he took advantage of a photo op. Pure window dressing.