Libertarian Rep. Ron Paul (R-TX), who is running for the GOP presidential nomination, released his economic plan on Monday to dramatically reduce the size of government in his first year in office.
Titled the “Plan to Restore America,” Paul’s plan would cut nearly $1 trillion in federal spending immediately after taking office, while also cutting over $500 billion in revenues when compared to President Barack Obama’s 2012 budget. He claims his plan would return the nation to budget surpluses by 2015.
Paul would cut funding from nearly every government agency, while eliminating several Cabinet agencies in their entirety. On the revenue side, Paul would lower the corporate tax rate and eliminate the capital gains and estate taxes.
Here are some of the cuts, and how much they would save in FY 2013 compared to the Congressional Budget Office baseline:
- Cut over $600 billion from mandatory spending programs including cuts to unemployment insurance
- Department of defence: End the wars, freeze other spending. $196,695,000,000
- Department of Transportation: Privatize the FAA, $39,936,000,000
- Department of Health and Human Services: Cut funding for FDA and CDC, eliminate Low Income Home Energy Assistance Program. $16,972,000,000
- Department of Homeland Security: Privatize the TSA. $13,788,000,000
- Department of State: Eliminate foreign aid and dues for international organisations. $19,412,000,000
- Environmental Protection Agency: 30 per cent cut from 2006 levels. $4,281,000,000
- Eliminate the Departments of Energy, Housing and Urban Development, Commerce, Interior and Education. $173,677,000,000
- Cut Medicaid spending by $95,000,000,000 (34% cut)
- Cut Food Stamps program by $50,000,000,000 (62% cut)
- Cut Child Nutrition programs by $7,000,000,000 (33% cut)
- The plan does not reduce Social Security, Medicare, or retirement program spending
Notably the plan does not include an analysis of the economic effects of Paul’s proposed budget — though cutting $1 trillion from the federal budget would be an instantaneous 7 per cent cut to GDP, nearly equivalent to the slowdown seen during the ‘Great Recession.’
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.