In April, the Free Press pointed to Pittsburgh for lessons on how the city of Detroit could revitalize itself. This week, Ellen Creager looks farther afield to Dublin. In a nutshell, Dublin went from bust to boom by slashing corporate taxes and investing its E.U. subsidies in education. Unfortunately, as the author repeatedly acknowledges, those lessons mean little for Detroit beyond the obvious (businesses like low taxes, and a better-educated workforce is, well, better) because the parallels between the cities are so few.
If there's a real lesson to be drawn, it's that Detroit needs to overhaul its tax system, which is currently caught in an unforgiving loop. As more residents leave, revenues decline, leaving fewer people left to pay for city services. To balance the budget, the city makes further cuts to services and is forced to raise fees, sending yet more residents fleeing, and forcing another round of belt-tightening and/or tax-raising.
This is obviously unsustainable. At some point, the city must find a way to lower its taxes -- especially the much-hated city income tax -- but it can't do so without an alternative source of revenue to compensate for what will initially be a serious drop in revenue. For now the city and county seem to hope that new tax incentive programs, like Land Bank T.U.R.B.O., will be sufficient to jumpstart new development.