Sen. Rand Paul (R-KY) has introduced a new FY 2013 budget. Unlike his last effort, which cut exclusively — though deeply — from discretionary spending in order to show much could be cut without touching entitlements, this one includes some entitlement reforms. Paul claims his budget:
- Reduces federal spending by $11 trillion relative to President Obama’s budget
- Balances in five years, within the balanced budget amendment window supported by all 47 Senate Republicans
- Achieves a $111 billion surplus in FY 2017
- Eliminates four Cabinet-level departments (Energy, Education, Commerce, and Housing and Urban Development) while privatizing the TSA
- Freezes foreign aid at $5 billion a year
- Reduces most discretionary spending to 2008 levels
The Rand budget repeals Obamacare, Dodd-Frank, the Davis-Bacon prevailing wage requirements, and the super committee defense spending sequesters while ending government ownership of bailed out companies. Paul would block grant Medicaid and food stamps to the states while gradually increasing the retirement age and instituting progressive price idexing (a form of means-testing) for Social Security.
Overall, the budget purports to cut $8 trillion in spending relative to the CBO baseline. I’d like to see some independent scoring and hear more details about the Medicare reforms (the bill containing the reforms hasn’t been introduced yet). But Sens. Jim DeMint (R-S.C.) and Mike Lee (R-UT) are also sponsors.