Sen. Rand Paul today unveiled his FY2014 budget, “A Clear Vision to Revitalize America,” to the S.Con.Res.8, the Budget Resolution. Sen. Paul’s plan would balance the budget in five years, significantly reduce spending and restore fiscal order to Washington.
“Washington has a serious and reckless spending problem that must be re-evaluated. American families across the country are required to live by a budget and Congress should be no different – every taxpayer dollar needs to be spent more wisely. Therefore, I am offering a plan that will address this country’s looming debt crisis in a truly timely manner – balancing the budget in just five years,” Sen. Paul said. “The time has come for a change that will restore fiscal order in this country, and I will do everything in my power to ensure that this happens.”
Below you will find top-line points regarding the Platform to Revitalize America. Click HERE to view the budget overview in its entirety.
· Balances the budget in five years by addressing spending cuts and reforms across the board
o Balances the budget without utilizing revenues; cuts $2.3 trillion in taxes relative to CBO baseline
SPENDING: This budget proposal significantly reduces spending relative to the Congressional Budget Office (CBO) baseline. It also brings spending below the historical average of 19.1 percent of GDP in the first year. Based on current CBO baseline, the budget would spend $9.6 trillion less over the next ten years.
· Brings federal spending below historical average in very first year
o Reduces spending by nearly $9.6 trillion relative to CBO baseline
o Achieves a $17 billion surplus in FY2018
o Remains in surplus after initial balance, pays off $1.8 trillion of our national debt in 10 yr. window
o Includes entitlement reform for Medicare and Social Security
§ Block-grants Medicaid, SCHIP, foods stamps, and child nutrition
§ Proposes Social Security reforms to fix trust fund over 75 years
§ Preserves Medicare by giving all seniors the same health care plan as Members of Congress
o Reduces most discretionary spending to FY2008 levels
o Defense: replenishes $126 billion over sequester levels
o Freezes foreign aid spending at $5 billion per year
o Defunds duplicative or wasteful agencies and programs
o Sells off excess federal properties and land
o Eliminates the Davis-Bacon prevailing wages provisions
o Liquidates government ownership of “bailout” companies
· Eliminates unnecessary bureaucracy
§ Department of Commerce
§ Department of Education (preserves Pell grants)
§ Department of Housing and Urban Development
§ Department of Energy (transfers nuclear research and weapons to re-established Atomic Energy Commission)
o Privatizes Transportation Security Administration
· Repeals Obamacare and Dodd-Frank
REVENUE: This budget provides a number of incentives to increase investment. By allowing Americans and businesses to keep more of their money, we will quicken the pace of deleveraging, allowing the economy to find its equilibrium, facilitating growth and employment.
· Tax Reform
o Low rate flat tax for individuals and corporations
o Pro-growth and globally competitive
ENTITLEMENT REFORM: The Social Security reform proposal includes two main provisions: a gradual increase in the retirement age and progressive indexing. The budget also includes reform of Medicare through the Congressional Health Care for Seniors Act. This reform will provide seniors with better health care at a lower cost to the senior and to the taxpayers. Seniors will receive the same health insurance as their Members of Congress, at lower out-of-pocket cost.
· Social Security
o Increase the retirement age over time, protecting beneficiaries
o Progressive Indexing, slows the growth of benefits for high-income and increases benefits for low income individuals
o Establish personal accounts that allow savers greater discretion over their retirement options
o Individual Choice that allows individuals to seek other means for retirement security outside the Social Security system
o Gives all seniors the same health care plan as Members of Congress
REGULATIONS: This budget supports adoption of the REINS Act, which seeks to require all major regulations – that is, regulations with an economic impact of over $100 million – to be approved by an up-or-down Congressional vote before they can take effect. In requiring this, REINS allows Congress to re-assert its lawmaking authority over regulatory agencies to ensure that the agency has produced a rule that reflects what Congress intended.
· Apply regulatory analysis requirements to independent agencies
· Adopt the REINS (Regulations from the Executive in Need of Scrutiny) Act
· Sunset on regulations
· Regulatory process reform
· Incorporation of formal rulemaking for major rules
· Open ANWR to drilling
· Open outer continental shelf for drilling
· Approve the Keystone XL pipeline
· Increase permitting to drill on public lands.