Rand Paul's ideas
Dr. Rand Paul Introduces ‘Penny Plan Balanced Budget’ | Senator Rand Paul
Dr. Rand Paul’s Balanced Budget:
• Dr. Paul’s budget simply states that for every on-budget dollar the
federal government spent in FY18, excluding the BBA, it spend one penny less for the next five years (at which point balance is reached), with spending then growing at one percent thereafter.
• Reduces spending by $404.8B in FY19 and by $13.35T over 10 years relative to baseline.
• Total spending still increases by 14.6 percent over the ten-year window. Only in Washington could a 14.6 percent increase be characterized as a cut.
• Balances without making any changes to Social Security.
• Makes no specific policy assumptions – all the savings are reflected in a new budget function (Function number 930: New Efficiencies, Consolidations, and Other Savings). This budget sets a goal of balance and then calls on Congress to use the tools provided to make the changes in law needed to achieve that objective.
The BBA of 2018
• The Bipartisan Budget Act of 2018 raised the discretionary spending caps imposed by the Budget Control Act of 2011 nearly $300 billion. With
federal debt over $21 trillion, the negative impact of borrowing more money for this spending outweighs any benefit derived from it.