Paradise? Private City in Honduras Plans to Have Texas-Like Government and Low Taxes
For those of you worried about the re-election of President Barack Obama, your future home may await you in Honduras. Small government and capitalism will be the focus of a new city being put together by a private firm. The unnamed city will have no taxes on income, capital gains or sales. Their model for law? The State of Texas. According to FOX News:
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.
Texans might really enjoy the “Texas feel” of the law.
The laws in the city will be separate from those in the rest of Honduras. Strong said that the default law that will be enforced in the city will actually be based on Texas state law, which has relatively few regulations.
“It will be Texas law with more freedom of contract. Texas scores well on state economic freedom rankings,” he explained.
“Texas law is also very familiar to American business people, and it is very familiar to Hondurans, because a lot of Hondurans have gone there or have family there.”
Investors who think the city will do well will also be able to buy land there.
“There will be a free market in land,” Strong said.
The rules for immigrating to the city have yet to be finalized, but are expected to be loose.
“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.
Paradise? We will see what happens.