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Small government and free-market capitalism are about to get put to the test in Honduras, where the government has agreed to let an investment group build an experimental city with no taxes on income, capital gains or sales.
Proponents say the tiny, as-yet unnamed town will become a Central American beacon of job creation and investment, by combining secure property rights with minimal government interference.
“Once we provide a sound legal system within which to do business, the whole job creation machine – the miracle of capitalism – will get going,” Michael Strong, CEO of the MKG Group, which will build the city and set its laws, told FoxNews.com.
Strong said that the agreement with the Honduran government states that the only tax will be on property.
“Our goal is to be the most economically free entity on Earth,” Strong said.
Honduran leaders hope that the city will lead to an economic boom for the poverty-stricken country south of Mexico. The average income in Honduras is $4,400 a year.
“[It] will bring a lot of investment into the country [and be] a center for many employment opportunities for our people,” Honduran President Porfirio Lobo Sosa has said.
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“It will be designed to be very welcoming to those with a minimum threshold of skills or capital,” Strong said. However, businesses in the city will be required to employ a minimum proportion of native Hondurans – a requirement imposed at the outset by the Honduran government to ensure that the city’s benefits largely go to Hondurans.
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Hell yeah, I would move there!!! But, I've got at least two more years where I am at. I've been looking at places like Costa Rica, Panama, Equador to start a business, but if this place actually comes to pass - Hell yeah!
wasnt something like this tried in limon CR like 20 years ago?
anyways, no i wouldnt move there unless there was good economic opportunities, which i doubt there would be. using the georgist model of emphasizing the land value tax like hong kong is encouraging and obviously more conducive to economic growth, so hope it succeeds. havent been to honduras in ages so will prolly visit but not interested in moving there.
If it's in Honduras the libertarians better bring a lot of guns... That country is the worst place in Central America when it comes to crime. It actually might have the highest murder rate in the entire world. San Pedro Sula was one of the worst cities I've ever seen. My bus from Tela to San Pedro Sula was stopped when they had to wait to clear a dead body from the highway.
If it's in Honduras the libertarians better bring a lot of guns... That country is the worst place in Central America when it comes to crime. It actually might have the highest murder rate in the entire world. San Pedro Sula was one of the worst cities I've ever seen. My bus from Tela to San Pedro Sula was stopped when they had to wait to clear a dead body from the highway.
Good luck, though!
Criminal activity in that city could be a very dangerous activity, probably better to rob and pillage from unarmed people outside that city.
There are many countries that tax friendly compared to the USA. I myself intend to move in a few years. I have been investing over seas for the better part of 7 years. Your money goes further and taxes are lower. Believe it or not there are still a few places that actually believe that your hard earned money is actually yours.
The MKG Group says its plan, however, is not to take advantage of natural resources, but rather to attract entrepreneurs using good laws and low taxes.
Strong cited Hong Kong as a city that prospered under that model.
“Hong Kong’s poverty once was roughly on the level of Africa. Today it is one of the wealthiest places.”
Strong says that the same could happen in Honduras.
“We'll see Hondurans having more jobs, higher income, and more security than they've ever had.”
Sounds like an interesting experiment. We have plenty of proof what happens when economic freedom is taken away and countries slide towards socialism. It will be enlightening to see what happens when the opposite principles are in effect. I wonder how much property will be...sounds like a great place to retire to.
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