U.S. Senator Rand Paul (R-KY) has introduced the “Six Penny Plan,” a federal budget proposal aimed at balancing the nation’s finances within five years by cutting six cents from every dollar of projected spending.
“Seven years ago, we could balance our budget with a freeze in spending without cutting anything. Since then, our national debt has skyrocketed to over $35 trillion with $6.6 trillion just in the past four years. Americans across the nation are struggling to make ends meet while their government recklessly spends and fuels the inflation crisis,” said Dr. Paul. “The greatest threat to our national security is our national debt, and we are now in a situation that a simple penny, two, three, or even a five pennies per-dollar reduction is insufficient to balance our budget. It requires six. We cannot keep ignoring this problem at the expense of taxpayers, and my budget will put our nation on track to solve this crisis that Congress created.”
Background on the Six Penny Plan:
Senator Paul’s proposal calls for a six-percent reduction in federal spending each year over the next five fiscal years, balancing on-budget outlays and revenues by 2029.
This marks an escalation from Paul’s previous budget plans, which only required a one-percent reduction. The Six Penny Plan addresses the growing crisis fueled by the federal government’s unchecked spending habits:
- Debt Increase: The federal government added $540 billion in just 100 days between the CBO’s February and June 2024 budget estimates.
- Deficit Growth: The June 2024 estimates increased projected deficits by $2.5 trillion compared to earlier forecasts.
- Interest Payments: The U.S. is spending more on interest payments on the debt than on national defense, a clear sign of financial strain.
The Six Penny Plan introduces drastic spending cuts but leaves discretion to Congress on how to achieve these reductions. Key components include:
- First-Year Cuts: The plan would reduce spending by $329 billion in its first year, continuing the six-percent reduction until balance is achieved in year five.
- 2017 Tax Cuts and Jobs Act: It assumes the 2017 tax cuts will be made permanent, offsetting projected revenue decreases by maintaining a pro-growth economic framework.
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Wide Support for the Plan:
Senator Paul’s Six Penny Plan has garnered support from fiscal watchdog groups and policy organizations:
- Heritage Action: Executive Vice President Ryan Walker said, “It’s time for Congress to make the hard decisions required to put our financial house back in order.”
- Citizens Against Government Waste: President Tom Schatz expressed support, noting that Paul’s plan promotes necessary fiscal responsibility.
- National Taxpayers Union Foundation: Demian Brady praised Paul for continuing the fight for balanced budgets, stating that a Six Penny Plan is now necessary due to years of fiscal neglect.
Other endorsements have come from the Taxpayers Protection Alliance, Citizens for Renewing America, and Americans for Limited Government Foundation, all highlighting the urgency of the U.S. debt crisis and the need for immediate reforms.
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“Senator Paul’s Six Penny Plan forces an honest discussion about the crisis our nation faces and some of the tough decisions which will be required to reverse course from the almost $2 Trillion in debt our country adds onto the ledger every single year. Higher interest rate payments on more of the debt combined with the spending spree which has raised the debt from $26.9 Trillion on September 30, 2020 to more than $35 Trillion. America is in trouble and Senator Paul is one of the few members of Congress willing to propose solutions,” said Richard Manning, President of Americans for Limited Government Foundation
With the national debt at unsustainable levels, Senator Paul’s Six Penny Plan represents one of the most aggressive approaches to reducing the deficit and protecting future generations from the consequences of fiscal irresponsibility.
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