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Home Liberty News

Rand Paul explains ‘Penny Plan’

by Liberty Pulse
12/08/2011
in Liberty News
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Rand Paul explains ‘Penny Plan’

Touting the need to reduce the federal debt, U.S. Sen. Rand Paul defended the Tea Party Movement and promoted the Penny Plan during a stop at the Henderson Fairgrounds on Saturday.

The Penny Plan would balance the budget by cutting total federal spending by 1 percent each year for six consecutive years, setting an overall spending cap of 18 percent of gross domestic product in 2018.

It would also reduce overall spending by $7.5 trillion over 10 years.

“The reason it works is that it’s a real cut,” Paul said at the 4-H pavilion. “We will spend more every year under the (debt) plan, and our deficit will grow every year under the debt plan, so it was inadequate. It wasn’t enough.”

He attributed August’s stock market volatility to a “no confidence” vote on the current debt plan.

“Now some people say that’s the Tea Party downgrade,” Paul said. “I say well, that’s like trying to blame firemen for fires…

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