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Showing posts from May 21, 2011

Rand Paul proposes a balanced budget in 5 years without raising taxes or touching entitlements.

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Rand Paul continues to put money where his mout h is , by planning to release a budget that will slash Federal spending to 18% of the GDP down from an existing 24% that is maintained by the current administration.   To avoid the popular and awfully contentious issues of entitlement effort Paul is achieving his balanced budget by removing entire departments! "Medicaid, children’s health insurance and food stamps are block-granted to the States and capped in the resolution.  Paul eliminates the departments of Commerce, Energy, Education, and Housing and Urban Development, all of which he says are unconstitutional." So while this is exciting and fascinating there is an inherent problem with Paul's proposal.  Even if America is somehow ready to accept that housing, education, commerce and energy are all things that have been made worse by the Federal government and belong to the States how are they going to accept the status quo on a taxation basis? Now in reality the