Classic Ron Paul: Restore America Now Budget Plan

Respect for individual liberty, free markets, and limited constitutional government made America the greatest nation in history. But we have drifted far from our founding principles, and our country is in crisis.

Outsized growth in the federal government has replaced growth in the private sector, limiting opportunity for average Americans, while the Federal Reserve’s policies of keeping interest rates artificially low have the unintended consequence of creating winners and losers. Winners tend to be the politically connected, who get massive bailouts or receive federal subsidies.

The losers tend to be everyday Americans caught up in the hype of borrowing and spending beyond their means, the millions who are unemployed, and the families whose homes face foreclosure. Taxpayers are forced to pay for the results of bad policies.

The price tag for government expansion, which has occurred for many decades under the leadership of both political parties, now matches that of our entire Gross Domestic Product.

How serious is this? Consider that no happy or productive family, for example, could sustain a budget of spending every last dime it earns and borrowing 41 cents for every dollar it spends.

This is what is happening in Washington, and it is only getting worse. That’s why I have proposed an ambitious plan that slams on the brakes and puts America on a return to constitutional government. It is bold but achievable. Through the united voice of freedom-loving Americans, we can and will implement fundamental reforms.

My “Plan to Restore America”delivers a true balanced budget in year three of a Paul presidency.

I am the only candidate talking seriously about balancing the budget and presenting the public with a full plan to confront our nation’s challenges.

First, my plan would cut $1 trillion in spending during my presidency’s first year, eliminating five cabinet departments (Energy, HUD, Commerce, Interior, and Education), abolishing corporate subsidies, stopping foreign aid, ending foreign wars, and returning most other spending to 2006 levels. Eliminating these unconstitutional departments would bring America closer to the vision of our Founders, who warned against the growth, cost, and policing powers of government.

Next, my plan addresses the entitlement issues that many other politicians are afraid to tackle. We can honor our promises to our seniors and veterans while allowing young workers to opt out of the system so they can keep more of what they earn and take on the responsibility they want to have for their own retirements.

Under my plan, Medicaid and other welfare programs would be funded using block grants to allow States the flexibility and ingenuity they need to solve their own unique problems without harming those currently relying on the programs. States were always intended to be independent from a high degree of federal meddling, and our leaders’ willingness to violate that fundamental principle is one of the many reasons America currently finds itself in such a dire situation.

My plan also cuts waste by reducing the federal workforce by 10 percent, slashing Congressional pay and perks, and curbing excessive federal travel. Also, as President, I will accept a salary of no more than $39,336. This is an amount approximately equal to the median personal income of the American worker.

To help provide an environment where our economy can grow, my plan lowers the corporate tax rate to 15 percent, making America competitive globally. It allows American companies to repatriate capital without additional taxation, spurring trillions in new investment, and it extends all Bush-era tax cuts. I would also work to end taxes on personal savings, allowing families to build a nest egg and offering them a way to plan for retirement that our nightmarish tax code currently denies them.