Ron Paul proposes saving $1T by scrapping five federal departments

/ AP Photo/Manuel Balce Ceneta

Republican presidential candidate Ron Paul on Monday unveiled a plan to cut $1 trillion from the federal budget within one year by eliminating a handful of federal departments, including the Energy and Education departments.

Paul's plan would shape the federal government to fit the Texas Republican's small-government, federalist views, slashing remaining department budgets, immediately ending all war spending, eliminating programs viewed as unnecessary, sending control over programs like Medicaid to the states, scrapping significant regulations and cutting taxes.

An executive summary of Paul's plan calls it "bold but achievable" by embracing "the bully pulpit of the presidency" and "the power of the Veto."

Along with the Departments of Energy and Education, Paul also proposes eliminating the Departments of Housing and Urban Development, Commerce, and Interior. Paul would also abolish the Transportation Security Administration, leaving security at airports and other transportation systems up to the private sector.

Paul's plan would set the budget for most other departments at 2006 levels, which for some agencies would mean eliminating certain programs. For instance, Paul says he would cut all funding for the Justice Department's "Community Oriented Policing Services" (COPS) program, which provides grants to state and local law enforcement agencies to hire and train officers.

Paul also proposes reducing the federal workforce by 10 percent, slashing congressional pay and bringing down the president's salary to $39,336 -- "approximately equal to the median personal income of the American worker," his campaign says.

Like most other Republicans, Paul wants to lower the corporate tax rate (he proposes to 15 percent), extend the Bush-era tax cuts and end taxes on capital gains and dividends.

He would repeal President Obama's health care overhaul, as well as his Wall Street regulatory overhaul and conduct a full audit of the Federal Reserve.

Under Paul's plan, states would simply receive block grants for Medicaid, food stamps, the State Children's Health Insurance Program and other welfare programs.

When it comes to Medicare, Social Security, and veterans' benefits, Paul says he his plan "honors" the commitment the nation has to seniors and veterans, but it allows young workers to opt out of those programs.

"Ron Paul's plan is the only one that seriously addresses the economic and budgetary problems our nation faces," Jesse Benton, Paul's campaign chairman and a co-author of the plan, said in a statement. "It's the only plan offered by a presidential candidate that actually balances the budget and begins to pay down the debt."

[starspangledbanner]

Those that criticize Ron Paul don't understand the Laws of Economics and/or the Laws of Nature. Ron Paul is vindicated because he understands those laws. Everybody knows that if one produces nothing one will eventually end up with nothing. Eventually one will either run out of money or support from those that gave the free handouts. Wake up America! When jobs paid for by taxes or bailouts or stimulus money or worthless printed currency outweigh jobs that produce real products with real value there will be no one left to tax and hyperinflation will set in. It's already happening! It's only a matter of time until the currency becomes useless and the Laws of Economics or hunger will become self evident.

[brenro21]

Typical American capitalist at work here. What's wrong with people that have less than upper level incomes working for peanuts in whatever working conditions their employers see fit since we don't want any meddling gov't. labor laws driving up prices? The Vanderbilts, Carnegies, Rockefellers, etc. would approve. I'm sure the rest of Americans will be eternally grateful for whatever crumbs they get. Prosperity for the few eventually causes revolution. Trickle down economics has been a dismal failure since the days of Reagan. The rich getting richer is not helping the economy in case you haven't noticed.

[starspangledbanner]

The rich are getter richer now due to corporatism, not because of capitalism. You obviously don't know what is really going on. Others like you favor socialism because you don't understand the free market. BTW, the Rockerfellers, Soros and Buffets love the new State Capitalism, it's called 'communist' China.

[ozilot]

Like the idea of reducing the number of federal departments...but necessarily the ones that Paul would eliminate.

I would consolidate the Depts of the Army, Navy, and Air Force into the Dept of Defense -- these are clearly redundent agencies.

I would also like to see a single intelligence agency instead of the many we have and likewise I would consolidate the many federal criminal investigation organizations like NCIS,etc into the FBI again many of these of simply redundent.

Amoung the civilian agencies there is plenty of opportunity, but I would definately keep Commerce, Energy, and Transportation. Departments like Education and HUD should be under the pervue of the states if they elect to have them. Likewise I would eliminate FEMA and let the states decide if they need them or want to organize a regional FEMA group amoung the states.

I also like the idea of reducing the presidents salary to the median U.S. per capita income but I would also reduce congresses' salaries to the same level and eliminate their health care -- as they are representatives of their states they should have whatever health care their respective state employees get.

[mjlewis6]

Dear Ron....the unemployed and the disenfranchised and dispossessed and lacking any income whatsoever...
will move to Texas to your house and camp out until you acknowlege the problems you create and address them

As for the rich, they do not have the problem of the lower and middle class (which is shrinking, thanks to the Bush Tax Cuts).

[Saberx7]

Ron Paul is in favor of ending corporatism. We need to stop picking winners and losers. We need to stop bailing out companies that are inefficient. We need to stop hemorrhaging of our dollar through imports. To do that last thing we must lower our environmental standards or apply them to imported goods. We have NO FACTORIES. That's why people don't have any jobs: we don't produce anything.

[fantod-2009]

And where are all these thousands of people who are to be fired from government jobs gonna work?

[bobw101]

He has said most of the job losses will come through attrition...You gotta read before you criticize.

[xymox_or_bust]

what about the MILLIONS without jobs due to crappy governmental overreach in the creation of all these economic bubbles? doh!

[noloyalisti]

Everthing Ron Paul stands for is everything that is wrong with America. He makes the wacko free market Tea Bagging perverts look sane. Unbelievable!

[xymox_or_bust]

what the?!?!

Everything that is wrong with America is what the status quoue represents. NObody needs more of that.

I am voting Ron Paul, and I dont care if hes Democrat/Republican/Libertarian because he speaks the truth. Of course I wonder why people like yourself dont like the truth, it doesnt do you any good.

[YesPaul]

noloyalisti - wacko... Tea Bagging perverts ... that does not sound intelligent at all. Can you come up with something better?

[zibulki]

Fantastic plan! There is so much of our tax money being wasted in the federal government. It's used for regulations that are counter-productive to our country's ability to be great once again.

[midvale3]

Yeah, like feeding the poor, ensuring safe working environments, clean drinking water, food, shelter, education to compete in the world, etc.....you sir are a moron.

[tomveil]

The only moron here is the one who thinks that cutting government spending will return us to the days of not having clean water or safe food. Maybe monsanto wouldn't be so big if they didn't pay off the regulators, huh?

[eteamer]

No department of Interior? Say good bye to national parks and public lands. Let corporations run everything with no laws? Thats Facsisim, pure and simple. Simple enough for a Ron Paul supporter. We had our chance to let Texass sussecde and we just said they were nuts. And Nuts they are.

[dan_webster]

The Native Americans should like that. America for Americans!

[Forty-Four]

dan, I hope that you are being sarcastic, unless I am taking your post in the wrong way.

[Forty-Four]

Good to know that you won't be taking office.

[1988JAck]

Wow! This guy is a real nut.

[paulhauser7]

Do you suggest that we continue to grow government at an unsustainable rate?

[msfreedomwatch]

Its time for Americans to come together. Just for a moment, put aside the Democrat and Republican bickering. Take the Obama-bashing out of the equation. Look at our country. We are broke. We are printing monopoly money that is going to make inflation skyrocket and bread will be $10. Our groceries are going up. Unemployment is going up. Jobs are going overseas. Our troops are exhausted after fighting a 10 year war. We are now in a new endless war-Libya. We continue to send billions of our dollars to other countries to help rebuild other countries. America needs help desperately. These are all bipartisan facts about our country. As an American, you can not deny any of these facts. We need HELP. We need an economic plan ASAP. We are losing our country before our very eyes. There is ONE candidate that has promised to bring the troops home and end the wars. There is ONE candidate who long ago predicted all of the economic troubles that we now facing. There is ONE candidate who wants to stop the spending and end the fed. He is the Republican Establishment's worst nightmare. He is not the status-quo. He appeases many democrats because he is Anti-War and Pro-Freedom. He is also being buried by the media because he is not your normal politician. He also is being backed by grassroots America of all types, and has zero backing from big rich corporations and banks like all the other leading candidates. Look at your country America. We are losing her. Open your minds and think for yourself. Stop watching the mainstream media TV box, and start researching the options and economic plans that intelligent people have delivered. THis is our only chance in getting our troops home, ending the enormous cash-flow of money out of our country, and rebuilding America. Google and You Tube Ron Paul and start your own research. Yep, the old guy that the media calls "Crazy".
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