Sen. Paul Unveils 5-Year Budget Plan: Eliminates Four Federal Agencies

Uploaded by SenatorRandPaul on Mar 17, 2011

Video from press conference today with Senators Rand Paul, Jim DeMint, and Mike Lee, unveiling Sen. Paul's balanced budget proposal.

Breaking News: Rand Paul Introducing Five-Year Balanced Budget

Posted by Matt Hawes on 03/17/11 1:10 PM Last updated 03/17/11 3:38 PM   [Newer: Taking the Lead] [Older: Ron Paul on Afghanistan]

Senator Rand Paul will hold a press conference with Mike Lee and Jim DeMint at 2:15pm eastern to announce his comprehensive 5-year balanced budget proposal.  It not only addresses Washington's out of control spending problem but also the core issue of the philosophy of government by returning more power and government functions to states and localities.

Here are some quick facts on his plan:

SPENDING:
· Brings spending near historical average in very first year
   - Reduces spending by nearly $4 trillion relative to the President's budget
   - Achieves a $19 billion surplus in FY2016
   - Brings all non-military discretionary spending back to FY2008 levels
   - Requires the process of entitlement reform, including Social Security and Medicare, with final implementation by FY2016
       - Does not change Social Security or Medicare benefits
       - Block-grants Medicaid, SCHIP, foods stamps, and child nutrition
· Provides the President's request for war funding
   - Reduces military spending 6 percent in FY2012
· Eliminates four departments:
   - Department of Commerce (transfers certain programs)
   - Department of Education (preserves Pell grants)
   - Department of Housing and Urban Development
   - Department of Energy (transfers nuclear research and weapons to Department of Defense)
· Repeals Obamacare
DEFICITS/DEBT:
· Never exceeds $12 trillion in debt held by public
· Creates $2.6 trillion less in deficit spending relative to the President's Budget
REVENUE:
· Extends all the 2001 and 2003 tax relief
· Permanently patches the alternative minimum tax
· Repeals Obamacare taxes

Call your senators today and urge them to support Rand Paul's 5-year balanced budget!  Stay tuned to CampaignForLiberty.com for more information after the press conference.

Update: ABCNews covers the unveiling and quotes Rand as saying:

ABC News' Mary Bruce reports:
Senator Rand Paul, R-Ky., unveiled today his five-year path to a balanced budget, leaving several federal agencies behind. Among the items on the cutting room floor are the Departments of Education, Energy, Commerce and Housing and Urban Development.
“There’s a lot of things in here that everybody could agree to, Republicans and Democrats, but nobody’s leading on the president’s side and on our side we felt we needed to put this forward to get the debate started, at the very least,” the freshman Senator explained at a Capitol Hill press conference this afternoon.
The proposal also calls for the repeal of “Obamacare,” but leaves entitlements untouched.
“There’s an argument for every federal program up here… Nobody’s coming up here asking me for money that’s not for a good reason. But the alternative is that we get into a point of financial disaster where nobody gets any money,” he said.
According to Paul, a Tea Party conservative, the proposal will bring spending to the “historic average since World War II” in just one year. He further claims the budget achieves a $19 billion surplus by FY2016 and will bring all non-military discretionary spending back to FY2008 levels.
Paul’s proposal gained support from freshman Senator Mike Lee, R-Utah, who today challenged anyone who opposes the plan to come up with a better option.
“There may be some in this town who will disagree with the manner in which we’re proposing moving toward a balanced budget over a five year period. That’s fine, that’s understandable, that’s what this town is about... but to those who may disagree with it, to those who might want to attack it. I would ask that they come up with their own five year plan,” he said at the press conference.
As for the sweeping cuts, South Carolina Republican Jim DeMint said balancing the budget requires “letting things go” back to the state level.
“There are functions and departments at the federal level that need to be devolved to the states. Part of balancing the budget is restructuring and devolving federal functions back the states, local communities and people,” he said.
DeMint said he did not agree with “every particular thing in here,” but stressed the importance of balancing the budget.