The Honduran government has granted permission for the construction of a new city that will be completely free of income, sales, and capital gains taxes. The city will be built by an American investment group of libertarians that says it will use the state of Texas as a model for the few laws they will put in place.
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. “First, we will build the critical infrastructure — roads, water, power, sewers,” Strong said. “In collaboration with the [Honduran] government, we will then create the city’s government system and the security, and 3 to 6 months after that we will build the first factories.” The MKG Group city is the first to get approval, but Honduras plans to create other “free cities” as well.
Strong is on the board of directors of homocon billionaire Peter Thiel’s Seasteading Institute, which has proposed a similar plan to creating floating “free cities” using oil drilling platforms. The Honduran project will presumably include Thiel’s plan to evade international banking regulations.