Ron Paul to propose $1T in specific budget cuts

Ron Paul’s opinions about cutting the budget are well-known, but on Monday, he’ll get specific: the Texas congressman will lay out a budget blueprint for deep and far-reaching cuts to federal spending, including the elimination of five cabinet-level departments and the drawdown of American troops fighting overseas.

There will even be a symbolic readjustment of the president’s own salary to put it in line with the average American salary.

During an afternoon speech in Las Vegas ahead of Tuesday’s debate, Paul will say that his plan for $1 trillion in cuts will create a balanced federal budget by the third year of his presidency.

“Dr. Paul is the only candidate with a plan to cut spending and truly balance the budget,” says an executive summary of the plan, which POLITICO obtained, along with detailed spending and taxation levels, ahead of its release. “This is the only plan that will deliver what America needs in these difficult times: Major regulatory relief, large spending cuts, sound monetary policy, and a balanced budget.”

Many of the ideas are familiar from Paul’s staunch libertarianism, as well as tea party favorites like eliminating the departments of education and energy. But Paul goes further: he’ll propose immediately freezing spending by numerous government agencies at 2006 levels, the last time Republicans had complete control of the federal budget, and drastically reducing spending elsewhere. The EPA would see a 30 percent cut, the Food and Drug Administration would see one of 40 percent and foreign aid would be zeroed out immediately. He’d also take an ax to Pentagon funding for wars.

Paul would also make far-reaching changes to federal tax policy, reducing the top corporate income tax rate to 15 percent, eliminating capital gains and dividends taxes, and allowing for repatriation of overseas capital without tax penalties. All Bush-era tax cuts would be extended.

Read more: http://www.politico.com/news/stories/1011/66114.html#ixzz1b2syqnjl

 

It's a great plan. Although the cuts to medicaid will get some attention.

 

Very business friendly and very realistic. The cuts to medicaid are coming whether its recipients like it or not. It's the kind of thing that should be addressed sooner, rather than later.

 

Ron paul can do whatever he wants. Even if he becomes president, No such bill will ever pass Congress.

 

There's a lot he can do to improve things sans Congress (i.e. ending our wars for starters...they cost quite a bit). Do you disagree with any of the cuts he has chosen?

 

ron paul wants to take us back to the 1937 depression.

 

This is the conversation the candidates should be having with the voters. It's insane to be talking about tax increases when we waste so much on useless or counterproductive federal agencies and departments.

We are borrowing 40% of every dollar the government spends. Even Obama must understand that cannot continue. Trimming around the edges of future increases willnot get it done. We need major cuts now. Real cuts, not cuts in assumed future increases.

 

Hyperbole aside, how does Ron Paul's plan take us back to the 1937 depression?

 

You want to take us to 1930s Weimer inflation.

 

The depression started in `29..went to `32-33, then the USA boomed until 37`. At that point we had a slight recession. Then it was off to the races for the next 35 years.