Rand Paul's Five-Year Path to a Balanced Budget

Sen. Rand Paul, Republican from Kentucky, had a press conference scheduled for today unveiling his plans for a five-year path to a balanced budget. Highlights from the plan from Campaign for Liberty's blog:

—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

The Hill reports the other day on Paul ratcheting down an earlier $500-billion cut proposal to a mere $200 billion. But:

An aide to Paul said the senator wanted to see if he could attract more support by offering different levels of cuts.

The aide said Paul wanted to pitch "various levels to engage interest to see how much people are willing to cut."

"You'll see the $500 billion proposal again," said the aide. "We're definitely not abandoning it."

See Reason.tv's blockbuster Paul interview from yesterday: